Digital Finance and Carbon Emission with Mediating Role of Consumption Structure: A Comparative Study Between Developed and Developing Countries

Abstract

Digital finance has an advantage for promoting the reduction in cost, reduce the transaction cost and it also
decreased the CO2 emission. The whole environment of the world change due to the global warming in the
temperature of the world and this temperature is increased due to the carbon emission into the environment and
the reduction of CO2 emission is done with the help of the digital finance. The main objective or purpose of the
current study is to analyses the relationship between the digital finance and the carbon emission of the developing
and underdeveloped countries. In current study the researcher also uses the mediating role of the consumption
structure of the countries. They also point out that the future researchers should increase the time period of the
data collection for better results and innovation effect on the carbon emission. The data has been collected from
the developing and developed countries from 2013-2023. In developing countries Pakistan and India are taken
and in developed countries Japan and Australia are selected. Descriptive statistics, Endogeneity tests, robustness
tests, heterogeneity tests, correlation matrix and the regression analysis will be done by using the Stata. In
regression analysis mediations steps are followed. Current study provides the policy implications to the top
management of the companies as well as to the countries so that how can they control the emission of the carbon
into the environment and how the consumption structure is control whether it’s development-oriented
consumption or enjoyment oriented consumption. The policy makers should encourage the people so that they
can use the low carbon emission products which also improves the environmental condition of the countries.