Financial Literacy as a Catalyst for Pro-Environmental Behavior: A Structural Modelling Analysis of Ecological Sustainability

Abstract

Financial literacy is increasingly recognised as a factor that influences individual decision-making beyond economic contexts. This study examines the role of financial literacy in shaping pro-environmental behavior and ecological sustainability through attitudinal and behavioral pathways. A quantitative cross-sectional design was employed using survey data from 146 respondents. Composite-based structural modelling was applied to test the proposed framework, with environmental commitment examined as a mediating variable. The results indicate that financial literacy has a significant positive effect on ecological commitment and pro-environmental behavior. Environmental commitment also exerts a significant influence on pro-environmental behavior. Pro-environmental behavior demonstrates a positive effect on ecological sustainability, while the direct relationship between financial literacy and ecological sustainability is not significant. These findings suggest that financial literacy influences ecological sustainability primarily through indirect pathways involving attitudes and behavior. Measurement properties were assessed using partial least squares-based validation procedures, which confirmed adequate reliability and validity for all constructs. The study contributes to sustainability research by integrating financial capability into behavioral models of ecological sustainability and highlights the potential role of financial education in supporting environmentally responsible behavior.