https://doi.org/10.52903/wp2025353
DOING MATTERS MORE THAN KNOWING: EVIDENCE FROM
ENVIRONMENTAL PREFERENCES
Panayiotis C. Andreou
Cyprus University of Technology and Durham University
Sofia Anyfantaki
European Central Bank, and Bank of Greece
Konstantinos Dellis
Athens University of Economics and Business
Christos A. Makridis
Arizona State University, Stanford University, and Vienna Complexity Science Hub
ABSTRACT
This paper examines the relation between financial knowledge proficiency, financial behaviors, and pro-environmental attitudes, focusing on the willingness to pay for eco-friendly products. Individuals who exhibit stronger financial behaviors, such as saving for the future and making considered purchases, show significantly higher levels of environmental concern and are more likely to engage in sustainable consumption. The results also show that financial knowledge proficiency does not directly predict pro-environmental attitudes; rather, its influence operates indirectly by fostering sound financial behaviors. The study highlights the importance of financial habits in shaping long-term, environmentally responsible decision-making and provides insights for designing policies that integrate financial capability with sustainability initiatives to promote eco-conscious consumer practices.
Keywords: Financial literacy; financial behaviors; environmental concern; sustainable consumption; pro-environmental preferences.
JEL-classifications: G53; D14; D91; Q50; Q56
Disclaimer: We are grateful to comments received from the participants of the 2025 International Conference of the Cyprus Financial Literacy and Education Committee and thank Katerina Violopoulou, whose research assistance significantly improved the paper. The views expressed herein are solely those of the authors and do not necessarily represent those of the European Central Bank, the Bank of Greece, or the Eurosystem..
Corresponding author:
Sofia Anyfantaki
DG Research, European Central Bank
Economic Analysis and Research Department, Bank of Greece
email: sofia.anyfantaki@ecb.europa.eu