Bridging digital finance and environmental sustainability: the role of sustainable financial behavior in shaping green consumer choices in Sierra Leone

Abstract

This study investigates the interplay between digital financial literacy (DFL), environmental concern (EC), and green consumer behavior (GCB) among urban consumers in Freetown, Sierra Leone, with particular attention to the mediating role of sustainable financial behavior (SFB) and the moderating influence of perceived risk (PR). Adopting a quantitative cross-sectional design, data were collected from 500 usable responses and analyzed using partial least squares structural equation modeling (PLS-SEM) via SmartPLS. Results reveal that both DFL and EC significantly and positively influence GCB, with DFL demonstrating a stronger direct effect (
β
 = 0.517,
p
 < 0.001) compared to EC (
β
 = 0.124,
p
 = 0.012). SFB partially mediates both relationships, serving as a critical behavioral mechanism that translates financial capability and environmental values into sustainable consumption practices. Perceived risk exhibited negative but non-significant moderation effects, suggesting that risk perceptions do not meaningfully attenuate the influence of DFL or EC on green consumer behavior in this emerging digital economy context. The findings contribute to sustainable finance literature by empirically validating SFB as a pivotal conduit linking digital literacy and environmental consciousness to actionable green behavior in a developing economy setting. Practically, the study advocates for integrated policy interventions that combine digital financial education, environmental awareness campaigns, and trust-building mechanisms within digital and green marketplaces to advance Sustainable Development Goals 8, 12, and 13. By bridging behavioral finance, digital inclusion, and environmental sustainability, this research offers a replicable framework for fostering responsible consumer lifestyles in resource-constrained economies.