Exploring Relationships Between Financial Literacy And Environmental Sustainability Among The Tribals Through Structural Equation Modelling

Abstract

Financial literacy is indispensable for sustainability. This study explores the relationship between financial literacy and environmental sustainability among the tribals of Northeast India. An extended theory of planned behaviour was established by adding financial awareness, knowledge and environmental sustainability into the model. The primary data was collected from Mao-Naga tribals through a structured questionnaire, and the sample size consisted of 1110. This research used the partial least square structural equation modelling (PLS-SEM) to test the hypothesis and other statistical analyses. The findings revealed that individuals with financial awareness, knowledge, attitude and behaviour could contribute to climate change promotion, reduce pollution, protect the environment, consciously use natural resources, reuse materials, and invest in green products. Financial behaviour and attitude play a dominant role in determining environmental sustainability. It has been found that being financially literate can promote environmental sustainability. Therefore, governments and regulators should sensitise people through campaigns and educational institutions to develop responsible behaviour for sustainability.