Public and Private Capital’s Role in Advancing Green Finance Investment: Evidence from a Structural–behavioural Model of Capital Mobilisation in the UK

Mahua Biswas *

London School of Science & Technology, Luton, UK.

Noor Mukhtar

London School of Science & Technology, Luton, UK.

Aparajita Guria

London School of Science & Technology, Luton, UK.

*Author to whom correspondence should be addressed.


Abstract

Achieving net-zero targets requires the mobilisation of private capital alongside credible public policy support. This study examines how government support mechanisms shape green investment commitment among UK financial professionals through an integrated structural–behavioural model. The framework incorporates perceived government support, regulatory clarity, financial incentives, public capital availability, investor confidence, private capital mobilisation, and green investment commitment. Data were collected through a structured questionnaire using purposive sampling, yielding 187 valid responses from professionals involved in capital allocation, finance, sustainability, and related roles. Regression, simple mediation, serial mediation, and measurement-model diagnostics were used to evaluate the proposed relationships. The findings indicate that perceived government support and financial incentives are significant direct predictors of green investment commitment, while investor confidence functions as an important behavioural transmission mechanism. Regulatory clarity strengthens commitment indirectly through investor confidence. Public capital availability does not show a significant direct effect on green investment commitment; rather, its influence operates through private capital mobilisation, consistent with a crowding-in pathway. The serial mediation analysis further indicates that government support is most strongly associated with investor confidence when translated into credible financial incentives. Overall, the findings suggest that effective green finance mobilisation depends on policy credibility, regulatory clarity, well-designed incentives, and mechanisms that convert public support into confidence and private capital mobilisation.

Keywords: Green finance, government support, investor confidence, regulatory clarity, private capital mobilisation, green investment commitment, mediation analysis


How to Cite

Biswas, Mahua, Noor Mukhtar, and Aparajita Guria. 2026. “Public and Private Capital’s Role in Advancing Green Finance Investment: Evidence from a Structural–behavioural Model of Capital Mobilisation in the UK”. Journal of Scientific Research and Reports 32 (10):959-74. https://doi.org/10.9734/jsrr/2026/v32i104613.

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