Is crowdfunding the solution? Appraising the environmental contributions of crowdfunding

Isaac Appiah-Otoo () and Xudong Chen ()
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Isaac Appiah-Otoo: Chengdu University of Technology
Xudong Chen: Chengdu University of Technology

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2025, vol. 27, issue 1, No 27, 855 pages

Abstract: Abstract Crowdfunding has recently emerged as a viable alternative funding source for renewable energy development and a driver of inclusive financial development and green economic growth; nevertheless, there exists limited empirics on the environmental contributions of crowdfunding. This study, therefore, closes this lacuna by examining the effect of crowdfunding on carbon dioxide emissions (CO2E). Applying a dataset encompassing 32 countries spanning 2013 to 2020, we find that crowdfunding reduces CO2E, with a 10% increase in crowdfunding leading to about 0.1% reduction in CO2E. The analysis also reveals that crowdfunding reduces CO2E only after attaining a threshold of 5.938, around $379 million. The mechanism analysis shows that crowdfunding decreases CO2E through economic growth and financial development. Finally, there exists feedback causality between crowdfunding and CO2E.

Keywords: Crowdfunding; Carbon emissions; Environmental sustainability (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10668-023-03875-w

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