Description:
This paper extends the literature on energy-related financial literacy by examining its role in collective energy retrofit investment decisions in post-Soviet countries, which suffer from suboptimal levels of these investments purportedly due to a lack of energy-specific knowledge and financial skills as well as low levels of trust. We investigate whether energy-related financial literacy and trust help explain collective energy retrofit investment decisions of typical Soviet-built multiapartment buildings in the case of Lithuania. Using unique survey data from Lithuania, we find that individuals’ willingness to invest in multiapartment building energy retrofits is positively associated with individuals’ general financial literacy, energy literacy, and energy-related financial literacy. Furthermore, we show that individuals’ trust in institutions that are directly involved in the house-retrofitting process is an important predictor for multiapartment building energy retrofit decisions