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Is crowdfunding the solution? Appraising the environmental contributions of crowdfunding

Author

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  • Isaac Appiah-Otoo

    (Chengdu University of Technology)

  • Xudong Chen

    (Chengdu University of Technology)

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.

Suggested Citation

  • Isaac Appiah-Otoo & Xudong Chen, 2025. "Is crowdfunding the solution? Appraising the environmental contributions of crowdfunding," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(1), pages 831-855, January.
    • Handle: RePEc:spr:endesu:v:27:y:2025:i:1:d:10.1007_s10668-023-03875-w
    DOI: 10.1007/s10668-023-03875-w
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