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Energy-related financial literacy and retrofits of Soviet-era apartment buildings: The case of Lithuania

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  • Asmare, Fissha
  • Giedraitis, Vincentas
  • Jaraitė, Jūratė
  • Kažukauskas, Andrius

Abstract

This paper extends the literature on energy-related financial literacy by examining its role in collective energy retrofit investment decisions in Soviet-era countries, which suffer from suboptimal levels of these investments, purportedly due to a lack of energy-specific knowledge and financial skills as well as low levels of trust. We investigate whether energy-related financial literacy and trust help explain collective energy retrofit investment decisions of typical Soviet-built multi-dwelling buildings in the case of Lithuania. Using unique survey data from Lithuania, we find that individuals' willingness to invest in multi-dwelling building energy retrofits is positively associated with individuals' general financial literacy, energy literacy, and energy-related financial literacy. Furthermore, we show that individuals' trust in institutions that are directly involved in the house-retrofitting process is an important predictor for multi-dwelling building energy retrofit decisions.

Suggested Citation

  • Asmare, Fissha & Giedraitis, Vincentas & Jaraitė, Jūratė & Kažukauskas, Andrius, 2023. "Energy-related financial literacy and retrofits of Soviet-era apartment buildings: The case of Lithuania," Energy Economics, Elsevier, vol. 120(C).
    • Handle: RePEc:eee:eneeco:v:120:y:2023:i:c:s0140988323000816
    DOI: 10.1016/j.eneco.2023.106583
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