How Does the Perception of Climate Change Affect Residents’ Choices of Green Assets?

Residents’ choices of green assets typically involve investing in or selecting environmentally beneficial products. How does climate change affect these choices? This study empirically finds that residents’ perception of climate change significantly enhances their adoption of green assets. This positive effect is particularly pronounced among women and residents who are familiar with ESG (Environmental, Social, and Governance) principles. Moreover, residents’ ecological values (i.e., their willingness to spend more on environmental protection) mediate all hypothesized relationships. Focusing on green assets in the context of green consumption, this study reveals patterns in residents’ green asset choices across different quantiles. Furthermore, it integrates ecological values into the research framework and provides reusable instrumental variables for future studies. Finally, tailored policy recommendations are proposed based on population heterogeneity to encourage the adoption of green assets.