Energy-related financial literacy and electricity consumption : Survey-based evidence from Finland

Abstract

We provide new insights into (i) the level of energy-related financial literacy in Finnish households, (ii) the sociodemographic characteristics that affect energy-related financial literacy, and (iii) whether energy-related financial literacy influences household electricity consumption. We use a data set consisting of energy-related financial literacy questions combined with monthly electricity consumption data. We draw from the recent literature on energy-related financial literacy and suggest two new variables based on subjective perceptions on energy-related financial literacy. Gender has a strong association with energy-related financial literacy. Our results also indicate that households of respondents with higher levels of energy-related financial literacy tend to consume less electricity when we control for other factors such as dwelling and household characteristics. This implies that measures to promote energy-related financial literacy might guide consumers' decisions toward energy efficiency and conservation.