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dc.contributor.author
Kumar, Nilkanth
dc.date.accessioned
2019-02-05T09:53:54Z
dc.date.available
2019-02-04T11:12:17Z
dc.date.available
2019-02-05T09:51:34Z
dc.date.available
2019-02-05T09:53:54Z
dc.date.issued
2019-02
dc.identifier.uri
http://hdl.handle.net/20.500.11850/322832
dc.identifier.doi
10.3929/ethz-b-000322832
dc.description.abstract
Recent research highlights the role of consumer’s energy-related financial literacy in adoption of energy efficient household appliances in order to reduce the energy-efficiency gap within the household sector. The computation of an indicator for such a literacy measure has followed a somewhat less refined approach though. This paper demonstrates the use of a model-based clustering strategy in order to differentiate the population based on the level of energy-related financial literacy. Using a Swiss data with 6,722 respondents, we are able to identify three latent groups that represent low, mid and high levels of literacy. We use this new measure within an ordered logit setting with the goal of explaining the determinants of the level of energy-related financial literacy and compare empirical results using classical indicators and approaches. The empirical findings suggest a significant gender-gap among the Swiss population, i.e. females, even those with university education, are less likely to possess a high level of energy-related financial literacy. Individuals who display strong concern for free-riding on their own energy reduction behavior, are also found to have higher odds of belonging to the low literacy group. The results show that it is possible to identify latent classes that have a general and intuitive meaning and provides support to the model-based clustering approach as a sophisticated alternative. This could be a useful approach when empirical researchers are interested in (attribute-based) latent groups of consumers. The identification of latent classes also provides a possibility to target consumers belonging to these classes with specific policy measures in order to increase their level of literacy.
en_US
dc.format
application/pdf
en_US
dc.language.iso
en
en_US
dc.publisher
CER-ETH – Center of Economic Research at ETH Zurich
en_US
dc.rights.uri
http://rightsstatements.org/page/InC-NC/1.0/
dc.subject
model-based clustering
en_US
dc.subject
Cluster analysis
en_US
dc.subject
Latent class
en_US
dc.subject
energy-related financial literacy
en_US
dc.subject
Gender gap
en_US
dc.subject
Switzerland
en_US
dc.title
A model-based clustering approach for analyzing energy-related financial literacy and its determinants
en_US
dc.type
Working Paper
dc.rights.license
In Copyright - Non-Commercial Use Permitted
ethz.journal.volume
312
en_US
ethz.size
35 p.
en_US
ethz.code.jel
JEL - JEL::C - Mathematical and Quantitative Methods::C3 - Multiple or Simultaneous Equation Models; Multiple Variables::C38 - Classification Methods; Cluster Analysis; Principal Components; Factor Models
en_US
ethz.code.jel
JEL - JEL::D - Microeconomics::D1 - Household Behavior and Family Economics::D12 - Consumer Economics: Empirical Analysis
en_US
ethz.code.jel
JEL - JEL::D - Microeconomics::D8 - Information, Knowledge, and Uncertainty::D80 - General
en_US
ethz.code.jel
JEL - JEL::D - Microeconomics::D4 - Market Structure, Pricing, and Design::D40 - General
en_US
ethz.publication.place
Zurich
en_US
ethz.publication.status
published
en_US
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03539 - Filippini, Massimo / Filippini, Massimo
en_US
ethz.leitzahl.certified
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03539 - Filippini, Massimo / Filippini, Massimo
en_US
ethz.date.deposited
2019-02-04T11:12:41Z
ethz.source
FORM
ethz.eth
yes
en_US
ethz.availability
Open access
en_US
ethz.rosetta.installDate
2019-02-05T09:51:54Z
ethz.rosetta.lastUpdated
2019-02-05T09:54:04Z
ethz.rosetta.exportRequired
true
ethz.rosetta.versionExported
true
ethz.COinS
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