Awareness of Climate Change and its Social and Economic Implications on The Energy Sector (Case Study of Small Investors in Egyptian Society)

The current study seeks to verify the awareness of small investors in the energy sector of climate change and its social and economic repercussions on this sector, identify the most important climate changes that small investors suffer from, reveal the most important causes of climate change and its impact on the energy sector, monitor the mechanisms of adaptation and flexibility of investors to these climate changes through their practices, indicate their degree of awareness of the most important economic transformations in the energy sector, review the most important opportunities provided by the state to investors in the energy sector in light of climate change, and finally determine how to enhance investors' awareness of the importance of economic transformations in the energy sector. This study adopts some theoretical propositions, which can be identified as follows: the theory of social awareness, the theory of risk society, the theory of limited natural resources, the social flexibility approach, Schumpeter and the investor's creative ability. The study relied on the descriptive analytical and anthropological approaches, by conducting in-depth interviews with small investors in the energy sector and energy-dependent sectors, after conducting a survey study that used initial interviews with investors to determine the type and characteristics of investors, as well as using informants, the observation tool, and the qualitative analysis method for the opinions of experts in the fields of environment and energy. The study found a disparity in small investors' knowledge, awareness, and perception of climate change and its social and economic repercussions on the energy sector and other sectors. In this context, opinions differed regarding identifying the physical risks resulting from climate change and its role in destroying assets, which cannot be used in insurance coverage due to increased losses. Chronic physical risks also lead to a decrease in labor productivity, manufacturing, and others, and it became clear that transition risks related to policies and technology can contribute to affecting companies and industries. Small investors believe that climate change is the result of several factors that lead to risks that pose a threat to different systems, affecting sectors. The energy sector is one of the most affected sectors with the changing demographic structure and increasing electricity and energy consumption; hence, the state is obligated to shift to other sources and new innovations to adapt to these changes. The study recommended the need to establish controls, legislation and tax incentives to encourage demand for green bonds, impose a tax on carbon emissions, monitor and follow up on energy efficiency, especially in factories and companies, and gradually abandon fossil fuels through policy reform and providing a stimulating investment environment.