Relationship between environmental performance indices and blockchain-based sustainability-focused companies: Evidence from countries in Europe and America

Abstract

As the world grapples with increasing environmental challenges, innovative technologies are essential for promoting sustainability and accountability. This study examined the impact of environmental performance indices (EPIs) on the growth and investment trends of blockchain-based sustainability-focused companies in 15 countries (Belgium, Czechia, Denmark, Estonia, Finland, France, Germany, Italy, Norway, Poland, Sweden, Spain, Switzerland, the United Kingdom, and the United States) from Europe and America during 2010–2022. This study used the negative binomial regression model to assess the relationship between EPIs and blockchain-based sustainability-focused companies based on the data from the CrunchBase and EarthData. Results indicated that in ecosystem vitality, national terrestrial biome protection efforts were negatively correlated the formation of blockchain-based sustainability-focused companies, while global terrestrial biome protection efforts and marine protected areas had a positive impact on the formation of these companies and the number of funding rounds. In environmental health, PM_2.5 exposure had a positive impact on the number of funding rounds. Conversely, pollutants such as sulfur dioxide (SO₂) and ocean plastics deterred the formation of blockchain-based sustainability-focused companies and reduced the number of funding rounds. In climate change performance, adjusted emission growth rate for carbon dioxide (CO₂), adjusted emission growth rate for F-gases, and adjusted emission growth rate for black carbon had a significantly positive impact on the formation of blockchain-based sustainability-focused companies. Conversely, adjusted emission growth rate for Nitrous Oxide (N₂O) and projected greenhouse gas emissions in 2050 negatively affected the formation of these companies. These findings highlight the dual role of EPIs as driving factors and barriers in the development and investment of blockchain-based sustainability-focused companies in countries from Europe and America.