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Blockchain market and green finance: The enablers of carbon neutrality in China

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  • Qin, Meng
  • Zhang, Xiaojing
  • Li, Yameng
  • Badarcea, Roxana Maria

Abstract

This investigation explores whether the blockchain market and green finance are enablers of carbon neutrality in China. We employ the time-varying parameter-stochastic volatility-vector auto-regression model to acquire the dynamic interactions among blockchain market (BCM), green finance (GF) and carbon neutrality process (CNP). The empirical results underline that there are long-term positive and negative effects of BCM on CNP. The positive effect indicates that the blockchain market development brings a lasting stimulus to carbon neutrality in China, but the adverse influence can not prove this idea. Moreover, green finance development can persistently promote carbon neutrality, which is more continuous and stable but less rapid and influential than blockchain market. Beyond these direct effects, GF could positively and chronically influence BCM, which is greater and more stable than BCM on GF, and both indirectly impact CNP. In the context of the severe challenges climate change poses, these conclusions provide valuable implications for China to achieve its carbon neutrality target by vigorously developing the blockchain market and green finance.

Suggested Citation

  • Qin, Meng & Zhang, Xiaojing & Li, Yameng & Badarcea, Roxana Maria, 2023. "Blockchain market and green finance: The enablers of carbon neutrality in China," Energy Economics, Elsevier, vol. 118(C).
    • Handle: RePEc:eee:eneeco:v:118:y:2023:i:c:s0140988322006302
    DOI: 10.1016/j.eneco.2022.106501
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    More about this item

    Keywords

    Blockchain market; Green finance; Carbon neutrality; China; Time-varying;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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