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Financial Literacy in the Age of Green Investment
[Evaluating behaviorally motivated policy: experimental evidence from the lightbulb market]

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  • Anders Anderson
  • David T Robinson

Abstract

We survey a large sample of Swedish households and connect the responses to administrative data to relate pro-environmental attitudes and values to actual investment decisions. Pro-environment households are not more likely to hold pro-environment portfolios. This results from financial disengagement: they are less likely to own stocks, check pension balances, or make green active retirement planning choices. Green financial engagement is stronger in settings where financial literacy is higher or where informational hurdles are lower. Informational barriers appear to prevent financial market prices and returns from fully reflecting household environmental preferences.

Suggested Citation

  • Anders Anderson & David T Robinson, 2022. "Financial Literacy in the Age of Green Investment [Evaluating behaviorally motivated policy: experimental evidence from the lightbulb market]," Review of Finance, European Finance Association, vol. 26(6), pages 1551-1584.
    • Handle: RePEc:oup:revfin:v:26:y:2022:i:6:p:1551-1584.
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    File URL: http://hdl.handle.net/10.1093/rof/rfab031
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    References listed on IDEAS

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    1. Buchanan, Bonnie & Silvola, Hanna & Vähämaa, Emilia, 2023. "Sustainability and private investors," Bank of Finland Research Discussion Papers 14/2023, Bank of Finland.

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