Working paper/research report

Authors list: Auzepy, Alix; Bannier, Christina E.; Gärtner, Florian

Publication year: 2024

DOI Link: https://doi.org/10.2139/ssrn.4773211

Title of series: CFS Working Paper Series

Number in series: 719

Abstract: 

We assess how sustainable finance literacy affects people’s sustainable investment behavior, using a pre-registered experiment. We find that an increase in sustainable finance literacy leads to a 4 to 5% increase in the probability of investing sustainably. This effect is moderated by sustainability preferences. In the absence of moderate sustainability preferences, any additional increase in sustainable finance literacy is at minimum irrelevant, and we find some evidence that it might even reduce sustainable investments. Our findings underscore the role of knowledge in shaping sustainable investment decisions, highlighting the importance of factors beyond sustainability preferences.

Harvard Citation style: Auzepy, A., Bannier, C. and Gärtner, F. (2024) Looking beyond ESG preferences: The role of sustainable finance literacy in sustainable investing. (CFS Working Paper Series, 719). Frankfurt am Main: Center for Financial Studies. https://doi.org/10.2139/ssrn.4773211

APA Citation style: Auzepy, A., Bannier, C., & Gärtner, F. (2024). Looking beyond ESG preferences: The role of sustainable finance literacy in sustainable investing. (CFS Working Paper Series, 719). Center for Financial Studies. https://doi.org/10.2139/ssrn.4773211