Examining the blockchain and green innovation technologies on sustainability (ESG): the moderating role of global financial integration

Saba Khan, Atta Ullah, Yuying Liu and Muhammad Kashif

Journal of Sustainable Finance & Investment, 2025, vol. 15, issue 1, 145-181

Abstract: This research aims to investigate the influence of blockchain technology (BCT) and green innovation technology (GIT) on sustainability through environmental, social, and governance (ESG) decision-making. This study incorporates the moderating role of global financial integration (GFI) in 148 Belt and Road countries, which comprised 76 advanced and 72 emerging economies from 2013 to 2021. This study used CSD and second-generation unit root tests referring to further models examined through the Sys-GMM estimation, which showed robustness with 2SLS-IV instrumental and FGLS methods. The findings confirm that blockchain technology (BCT) and green innovation technology (GIT) significantly and positively impact sustainability by endorsing stakeholder and ICT diffusion theory in the overall BRI, as well as in advanced and emerging countries. Furthermore, global financial integration (GFI) moderating and interaction terms of BCT*GFI and GIT*GFI show significant constructive contributions to the sustainability level in overall BRI, advanced and emerging countries. Nonetheless, the critical global financial integration (GFI) individual effect simultaneously indicates a mixed but noteworthy influence on sustainability (ESG) in BRI, advanced and emerging economies. Besides that, digital financial transactions (DFT), industry value-added growth (IVDG), and economic growth significantly affect sustainability in BRI, advanced and emerging countries. Other factors, such as urbanization and labour freedom, have shown mixed outcomes in advanced and emerging countries, insignificantly harming sustainability (ESG) overall in BRI 148 sample. The current study is valuable to the existing academic discourse, offering insights and implications that can guide policymakers and businesses for the transition to sustainable digital and green shifts to low-carbon BRI-advanced and emerging countries.Study contributing to exploring blockchain technology and green innovation on ESG sustainability.Untapped the global financial integration (GFI) moderation effect.Explored 148 Belt and Road countries from 2013 to 2021.Employed Sys-GMM, which is robust with the 2SLS-IV instrumental method and FGLS.Blockchain and green innovation technologies constructively contribute toward ESG sustainability.Critical GFI individual effect indicates a negative but noteworthy influence on ESG sustainability.Digital financial transactions (DFT), industry value-added growth (IVDG), and economic growth significantly affect ESG sustainability.Study has important policy implications for a balanced, sustainable global economy and to foster disruptive ESG sustainability.

Date: 2025
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DOI: 10.1080/20430795.2024.2441204

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