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Digital finance, green finance and social finance: is there a link?

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  • Ozili, Peterson K

Abstract

Identifying the intersection between digital finance, green finance and social finance is important for promoting sustainable financial, social and environmental development. This paper suggests a link between digital finance, green finance and social finance. Using a simple conceptual model, I show that digital finance offers a smooth, efficient and seamless channel for individuals and corporations to fund social projects that deliver a social dividend, and green projects that promote a sustainable environment. The implication is that digital finance is both an enabler and a channel for efficient green financing and social financing.

Suggested Citation

  • Ozili, Peterson K, 2021. "Digital finance, green finance and social finance: is there a link?," MPRA Paper 110151, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:110151
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    References listed on IDEAS

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    5. Torsten Ehlers & Frank Packer, 2017. "Green bond finance and certification," BIS Quarterly Review, Bank for International Settlements, September.
    6. Peterson K. Ozili, 2018. "Impact of digital finance on financial inclusion and stability," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 18(4), pages 329-340, December.
    7. Pasquale Marcello Falcone & Edgardo Sica, 2019. "Assessing the Opportunities and Challenges of Green Finance in Italy: An Analysis of the Biomass Production Sector," Sustainability, MDPI, vol. 11(2), pages 1-14, January.
    8. Michele-Lee Moore & Frances R. Westley & Alex Nicholls, 2012. "The Social Finance and Social Innovation Nexus-super-1," Journal of Social Entrepreneurship, Taylor & Francis Journals, vol. 3(2), pages 115-132, October.
    9. Ozili, Peterson Kitakogelu, 2018. "Impact of Digital Finance on Financial Inclusion and Stability," MPRA Paper 84771, University Library of Munich, Germany.
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    Citations

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    Cited by:

    1. Zhe Zhang, 2022. "Research on the Impact of Digital Finance on China's Urban-Rural Income Gap," Review of Economic Assessment, Anser Press, vol. 1(1), pages 63-75, December.
    2. Tianshun Ruan & Ying Gu & Xinhao Li & Rong Qu, 2022. "Research on the Practical Path of Resource-Based Enterprises to Improve Environmental Efficiency in Digital Transformation," Sustainability, MDPI, vol. 14(21), pages 1-17, October.
    3. Lingui Qin & Yan Zhang & Yige Wang & Xinning Pan & Zhe Xu, 2024. "Research on the Impact of Digital Green Finance on Agricultural Green Total Factor Productivity: Evidence from China," Agriculture, MDPI, vol. 14(7), pages 1-23, July.
    4. Chunhua Xin & Shuangshuang Fan & Zihao Guo, 2024. "Can digital finance promote inclusive growth to meet sustainable development in China? A machine learning approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(10), pages 26647-26677, October.
    5. Huiquan Li & Qingning Lin & Yan Wang & Shiping Mao, 2023. "Can Digital Finance Improve China’s Agricultural Green Total Factor Productivity?," Agriculture, MDPI, vol. 13(7), pages 1-19, July.
    6. Lee, Chien-Chiang & He, Zhi-Wen & Xiao, Fu, 2022. "How does information and communication technology affect renewable energy technology innovation? International evidence," Renewable Energy, Elsevier, vol. 200(C), pages 546-557.
    7. Stef Kuypers & Thomas Goorden & Bruno Delepierre, 2021. "Computational Analysis of the Properties of Post-Keynesian Endogenous Money Systems," JRFM, MDPI, vol. 14(7), pages 1-25, July.
    8. Shaolong Zeng & Qinyi Fu & Fazli Haleem & Yang Shen & Jiedong Zhang, 2023. "Carbon-Reduction, Green Finance, and High-Quality Economic Development: A Case of China," Sustainability, MDPI, vol. 15(18), pages 1-22, September.
    9. Aamir Aijaz Syed & Farhan Ahmed & Muhammad Abdul Kamal & Juan E. Trinidad Segovia, 2021. "Assessing the Role of Digital Finance on Shadow Economy and Financial Instability: An Empirical Analysis of Selected South Asian Countries," Mathematics, MDPI, vol. 9(23), pages 1-15, November.
    10. Lu, Xunfa & Huang, Nan & Mo, Jianlei & Ye, Zhitao, 2023. "Dynamics of the return and volatility connectedness among green finance markets during the COVID-19 pandemic," Energy Economics, Elsevier, vol. 125(C).
    11. Razzaq, Asif & Sharif, Arshian & Ozturk, Ilhan & Skare, Marinko, 2023. "Asymmetric influence of digital finance, and renewable energy technology innovation on green growth in China," Renewable Energy, Elsevier, vol. 202(C), pages 310-319.
    12. Ozili, Peterson K, 2023. "Using central bank digital currency to achieve the sustainable development goals," MPRA Paper 118806, University Library of Munich, Germany.
    13. Hua Zhang & Qiwang Zhang & Man An & Zixuan Zhang & Nanqiao He, 2023. "Unveiling the Impact of Digital Financial Inclusion on Low-Carbon Green Utilization of Farmland: The Roles of Farmland Transfer and Management Scale," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
    14. Zhang, Zhongqingyang & Mao, Ruixiang & Zhou, Zhongbao & Zeng, Zhijian, 2023. "How does digital finance affect green innovation? City-level evidence from China," Finance Research Letters, Elsevier, vol. 58(PB).
    15. Sun, Chuanwang & Khan, Anwar & Xue, Juntao & Huang, Xiaoyong, 2024. "Are digital economy and financial structure driving renewable energy technology innovations: A major eight countries perspective," Applied Energy, Elsevier, vol. 362(C).
    16. YunQian Zhang, 2023. "Impact of green finance and environmental protection on green economic recovery in South Asian economies: mediating role of FinTech," Economic Change and Restructuring, Springer, vol. 56(3), pages 2069-2086, June.
    17. Ozili, Peterson K, 2022. "Digital financial inclusion," MPRA Paper 113789, University Library of Munich, Germany.
    18. Xiaolong Bai, 2022. "Exploring the Sustainable Development Path of a Green Financial System in the Context of Carbon Neutrality and Carbon Peaking: Evidence from China," Sustainability, MDPI, vol. 14(23), pages 1-25, November.

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    More about this item

    Keywords

    green finance; social finance; digital finance; sustainable development; environment; sustainable finance; innovation;
    All these keywords.

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • 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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