The Influence of Financial Literacy and Environmental Awareness on Green Investment Decisions

DOI

10.2991/978-94-6463-758-8_262How to use a DOI?

Keywords

Financial Literacy; Environmental Awareness; Green Investment

Abstract

This study aims to analyze the influence of financial literacy and environmental awareness on green investment decisions among investors in Indonesia. Green investment plays a crucial role in supporting sustainable economies and mitigating the negative impacts of climate change. The population of this study consists of individuals actively engaged in investment activities in Indonesia, with a sample of 136 respondents selected using purposive sampling. The respondents are investors aged 17–44 years with knowledge of Environmental, Social, and Governance (ESG) aspects. The results of multiple linear regression analysis show that both financial literacy and environmental awareness significantly influence green investment decisions (p-value < 0.05). Financial literacy has a regression coefficient of 0.459, indicating that an increase in financial literacy enhances green investment decisions by 45.9%. However, environmental awareness exerts impact, with a regression coefficient of 0.164, means that a one unit increase in environmental awareness leads to a 16.4% increase in green investment decisions. These findings demonstrate that financial literacy is more dominant in driving green investment decisions compared to environmental awareness. Therefore, more intensive environmental awareness campaigns, combined with efforts to improve financial literacy, can be an effective strategy to boost participation in green investments. The results provide valuable insights for policymakers and financial institutions in designing programs that support sustainable investment practices.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Muthmainnah Mansyur
AU  - Fauzi R. Rahim
PY  - 2025
DA  - 2025/07/30
TI  - The Influence of Financial Literacy and Environmental Awareness on Green Investment Decisions
BT  - Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)
PB  - Atlantis Press
SP  - 3143
EP  - 3154
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-758-8_262
DO  - 10.2991/978-94-6463-758-8_262
ID  - Mansyur2025
ER  -