Financial Literacy in the Age of Green Investment

40 Pages Posted: 5 Apr 2019 Last revised: 23 Dec 2020

See all articles by Anders Anderson

Anders Anderson

Swedish House of Finance

David T. Robinson

Fuqua School of Business, Duke University; National Bureau of Economic Research (NBER); Duke Innovation & Entrepreneurship Initiative

Date Written: December 23, 2020


We conduct a large-scale survey of Swedish households matched to registry data on actual financial choices to measure financial literacy, awareness of environmental tradeoffs, and actual investment behavior. There is low overlap between environmental and financial knowledge and behaviors. Prosocial values towards the environment are associated with both mistaken beliefs about finance and a higher willingness to pay for green financial products, but these effects are weaker among respondents with higher financial literacy. Our results have important implications for both theory and policies supporting sustainable finance as a tool to change firm behavior.

Keywords: sustainability; financial literacy; overconfidence; environmental risks; retirement savings

JEL Classification: G02; G11; G18

Suggested Citation

Anderson, Anders and Robinson, David T., Financial Literacy in the Age of Green Investment (December 23, 2020). Swedish House of Finance Research Paper No. 19-6, Available at SSRN: or

Anders Anderson (Contact Author)

Swedish House of Finance ( email )

Drottninggatan 98
111 60 Stockholm

David T. Robinson

Fuqua School of Business, Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0120
United States
919-660-8023 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Duke Innovation & Entrepreneurship Initiative ( email )

215 Morris St., Suite 300
Durham, NC 27701
United States

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