Role of Crowdfunding in Financing Environmental Projects: A Consumer

Abstract

In recent years, environmental sustainability has emerged as a pressing global concern, calling for innovative financing mechanisms to support grassroots green initiatives. Crowdfunding, as a FinTech innovation, offers a decentralized and participatory platform to fund such projects by engaging the general public. This study investigates consumer perception regarding the role of crowdfunding in financing environmental projects, with a focus on awareness, trust, transparency, and willingness to contribute.

The research adopts a quantitative approach using a structured questionnaire distributed among Indian consumers. A sample of 200 respondents was collected via online and offline surveys. The data was analyzed using SPSS, employing tools such as descriptive statistics, reliability tests (Cronbach’s alpha), Pearson’s Correlation, Chi-Square, and Multiple Linear Regression analysis to identify key variables influencing consumer willingness to fund environmental initiatives.

The findings indicate that trust in crowdfunding platforms, perceived impact of environmental projects, and transparency in fund utilization are the most significant predictors of willingness to contribute. While awareness of crowdfunding platforms is moderate, actual participation remains low, highlighting the gap between intention and action.

The study offers valuable insights for crowdfunding platforms, environmental NGOs, and policymakers. It emphasizes the need for enhanced digital literacy, platform credibility, and transparent communication strategies to mobilize funds for environmental sustainability. This paper contributes to the limited empirical literature linking green crowdfunding and consumer behavior in the Indian context.