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Financial literacy and household energy efficiency: An analysis of credit market and supply chain

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  • Ye, Xiang
  • Yue, Pengpeng

Abstract

We use survey data from China households to investigate the impact of financial literacy on household energy efficiency. We aggregate the household energy use and carbon emissions after calculating the energy and carbon intensity of the related sectors of household expenditure. We show that households with high financial literacy perform higher energy use and carbon emissions but lower energy efficiency. Furthermore, the credit market and supply chain have statistically positive effects on energy use and carbon emissions. The results suggest that the government should take more decisive action to reduce carbon emissions, not rely on households voluntarily.

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  • Ye, Xiang & Yue, Pengpeng, 2023. "Financial literacy and household energy efficiency: An analysis of credit market and supply chain," Finance Research Letters, Elsevier, vol. 52(C).
    • Handle: RePEc:eee:finlet:v:52:y:2023:i:c:s1544612322007395
    DOI: 10.1016/j.frl.2022.103563
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    More about this item

    Keywords

    Financial literacy; Consumer lifestyle approach; Energy efficiency; Carbon emissions; Energy use;
    All these keywords.

    JEL classification:

    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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