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

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