Dynamic Connectedness between Fintech Applications, Carbon Emission and Carbon Pricing

Abstract

Climate change poses significant challenges for environmental sustainability and societal well-being.Theintegrationoftechnologyintofinancehasledtothedevelopmentofinnovativefintech applicationsthatcaneffectivelyaddressenvironmentalchallenges.Thisstudyaimstoexaminethe dynamic connections among fintech applications, carbon emissions, and carbon pricing. Using theTime-VaryingParameterVAR-baseddynamicconnectednessmodel,thestudyinvestigatesthe time-varying associations among robo-advisors, crowdfunding, green cryptocurrencies, carbon emissions, and carbon pricing. The study uses the daily frequency data from 2018 to 2022. The results show that the fintech applications, particularly robo-advisory and crowdfunding, are significantly interconnected in a network with carbon emissions and carbon pricing.