Sustainable rural development (SRD) is an essential component of sustainable development on a global scale. Community Renewable Energy (CRE) has been advocated as a step forward in the progress towards SRD. While Northern European countries are experiencing a high development of CRE, Southern European countries lag behind. Considering entrepreneurship and renewable energy technologies (RET) as two fundamental components of CRE, through a systematic literature review this study identifies the antecedents or conditioning factors of entrepreneurship and RET exploitation in rural areas of developed countries, understanding that these same antecedents condition the development of CRE in these countries. The identified factors are organized around five capital spheres: economic, human, social, physical and natural. Given that these five spheres are not watertight compartments, but rather that their limits are diffuse and there are multiple interactions between them, we try to highlight their interrelationships through System Thinking based on the design of causal loop diagrams. The results can help policy makers and CRE projects’ promoters in the design of effective policies and strategies to foster the development of CRE in rural areas of developed countries.

Reputation is a complex and multidimensional concept that may be organized in downside and upside reputational risk. In this article, we present a formal modelling for the management capabilities of environmental management and reporting over reputational risk, considering that reputational risk is becoming increasingly important for organizations and it directly depends on the information available about companies’ environmental performances. As long as the effectiveness of communication and disclosure plays a key role in the process, the usefulness of environmental management and reporting as a hedging instrument for reputational risk is addressed through different levels of information transparency. When considering a scenario of voluntary reporting, we show that environmentally concerned companies can reduce the cost of environmental management as a reputational risk strategy, as well as reducing the potential loss of reputational value from reputational threats and increasing the potential profit from reputational opportunities. In the context of mandatory reporting, we highlight the role of assurance companies as bearers of the risk of bad reputations for non-concerned companies. As a result, this novel approach applies theoretical oriented research from options theory to reputational risk management literature, so that it benefits from the option’s well known theory, robustness, and conclusions.

Community renewable energy has been acknowledged as a necessary step in the transition toward a sustainable energy system. It can contribute to the achievement of energy autonomy by communities. In rural settings, it can be a driver of sustainable rural development. And it can be seen as a specific contribution to circular economy from the energy sector. The willingness to invest in community renewable energy has received some attention in previous research but needs further investigation at the local rural scale through quantitative approaches. Based on a survey in a small Galician village, this study contributes to the filling of this gap. The willingness to invest of its inhabitants is analyzed in relation to alternative financial, sociodemographic and sociopsychological features. Survey results show the heterogeneity of individual attitudes and concerns that condition the willingness to invest in rural community renewable energy and the different perceptions of risk and return related to these projects. Cluster analysis allows identifying four different investor profiles (skeptics, financial illiterate, enthusiasts, yield investors). These should be accounted for by project promoters and policymakers when designing incentives and strategies to foster community renewable energy in rural settings.