Mohammadhossein Lashkaripour, Seyed Mehdi Hosseini, Rizwan Ahmed
Bitcoin contributes to global carbon emissions on a scale comparable to entire countries in order to secure its decentralized network. This exposes Bitcoin to climate policies aimed at reducing emissions. This paper develops a general equilibrium framework to examine how the stringency of climate policy affects Bitcoin’s valuation and its relationship with the equity market. Our theoretical analysis delivers a key insight: a transition from a lenient to a stringent climate policy increases the conditional correlation between Bitcoin and equity returns, thereby compromising Bitcoin’s appeal as a hedge or diversifier against equity market volatility. Empirical evidence supports this theoretical prediction.
Taegyum Kim, Hyeontae Jo, Woohyuk Choi, Bong‐Gyu Jang
ABSTRACT This paper aims to improve Bitcoin price direction prediction using a CNN‐LSTM model that incorporates various relevant indicators, such as stock market indices, commodity indices, and interest rates. Separate models are trained for predicting price up and down direction and combined to enhance prediction accuracy. We utilize binary classification models to independently analyze the impact of different features, verified through explainable artificial intelligence techniques. Additionally, an investment strategy based on our model is proposed and compared with traditional strategies, specifically focusing on maximum drawdown relative to the S&P500 buy‐and‐hold strategy. Results suggest that our strategy offers potential for stable investment in Bitcoin, showcasing its value as a financial asset. This study demonstrates the role of deep learning in Bitcoin price direction prediction and investment strategy development and contributes to future research on cryptocurrency forecasting and investment approaches.
Addressing the shortcomings of the Voluntary Carbon Markets (VCMs), a nascent blockchain industry has disrupted this area with an ever-growing number of projects leveraging open-source, decentralised base-layer platforms (e.g. Ethereum, Cosmos) and business-oriented decentralized applications (Dapps). Building on this emerging digital infrastructure over the Internet, community-driven decentralized autonomous organizations (DAOs) are building new socio-technical systems for decentralized finance (DeFi) and, more recently, regenerative finance (ReFi). Both areas are making their way into VCMs promising improved transparency, efficiency and greater accessibility. This paper examines the goals, scope, and intended outcomes of prominent blockchain-based ReFi projects in the VCM space. In particular, it explores the potential for commons-based outcomes emerging from peer-to-peer configurations in the VCM. Using a qualitative approach, the study analyses text-data from industry whitepapers focusing on the cases of Celo, Regen, Toucan, Klima and Moss. The findings show the ReFi ecosystem as a low-transaction-cost environment fostering open-source prototypes of peer-production for carbon accounting and trading. These innovations materialize through application interfaces operating on base-layer blockchains running smart-contracts and tokens. The tokenization of real-world assets (RWA) or rights (e.g. renewable energy generation, storage capacity, or forestry land) and the automation of operations (e.g. exchanges) via smart contracting, provides participants with new affordances for secure, bi-directional coordination in near-real time. The preliminary conclusion is that, while the ReFi organizations considered seem to be Ostrom-compliant with regard to some principles (e.g. clearly defined boundaries, procedures for making own rules, monitoring, or minimal recognition of rights) others are still ad-hoc practices or work in progress (e.g. graduated sanctions or dispute resolution mechanisms). This study contributes to the critical exploration of enhanced governance mechanisms, enabled by technological innovation, that can address climate action challenges and provide viable alternatives to traditional market-based approaches.
This study examines the influence of cryptocurrency's environmental footprint on market behavior through an analysis of 66,582 Reddit posts about Bitcoin and 23,231 about Ethereum. Using a vector autoregression (VAR) model, it explores the relationship between social media discussions on environmental issues, electricity use, and cryptocurrencies' market dynamics. We find a negative correlation between environmental discussions and Bitcoin volatility. Moreover, real electricity use has a more pronounced impact than social media discussions on both Bitcoin and Ethereum volatility. This indicates that crypto market investors prioritize real-world indicators over information from social media discussions. The study also reveals a bidirectional relationship between Bitcoin volatility and environmental posts, highlighting the complex interplay between market behavior and public discourse on environmental matters in the cryptocurrency domain. These results suggest the need for policies that limit energy consumption due to mining, promote renewable energy, and enhance investor education on environmental impacts to support sustainable practices in the cryptocurrency market.
The “gas fee” paid for inclusion in the blockchain is analyzed in two parts. First, we consider how “effort” in terms of resources required to process and store a transaction turns into a “gas limit,” which, through a fee comprised of the “base” and “priority fee” in the current version of Ethereum, is converted into the cost paid by the user. We adhere closely to the Ethereum protocol to simplify the analysis and to constrain the design choices when considering “multidimensional gas.” Second, we assume that the “gas” price is given deus ex machina by a fractional Ornstein–Uhlenbeck process and evaluate various derivatives. These contracts can, for example, mitigate gas cost volatility. The ability to price and trade “forwards” in addition to the existing “spot” inclusion into the blockchain could enable users to hedge against future cost fluctuations. Overall, this article offers a comprehensive analysis of gas fee dynamics on the Ethereum blockchain, integrating supply-side constraints with demand-side modelling to enhance the predictability and stability of transaction costs.
Md. Ramjan Ali, Sharfuddin Ahmed Khan, Yaşanur Kayıkçı, Muhammad Shujaat Mubarik
Purpose Blockchain technology is one of the major contributors to supply chain sustainability because of its inherent features. However, its adoption rate is relatively low due to reasons such as the diverse barriers impeding blockchain adoption. The purpose of this study is to identify blockchain adoption barriers in sustainable supply chain and uncovers their interrelationships. Design/methodology/approach A three-phase framework that combines machine learning (ML) classifiers, BORUTA feature selection algorithm, and Grey-DEMATEL method. From the literature review, 26 potential barriers were identified and evaluated through the performance of ML models with accuracy and f-score. Findings The findings reveal that feature selection algorithm detected 15 prominent barriers, and random forest (RF) classifier performed with the highest accuracy and f-score. Moreover, the performance of the RF increased by 2.38% accuracy and 2.19% f-score after removing irrelevant barriers, confirming the validity of feature selection algorithm. An RF classifier ranked the prominent barriers and according to ranking, financial constraints, immaturity, security, knowledge and expertise, and cultural differences resided at the top of the list. Furthermore, a Grey-DEMATEL method is employed to expose interrelationships between prominent barriers and to provide an overview of the cause-and-effect group. Practical implications The outcome of this study can help industry practitioners develop new strategies and plans for blockchain adoption in sustainable supply chains. Originality/value The research on the adoption of blockchain technology in sustainable supply chains is still evolving. This study contributes to the ongoing debate by exploring how practitioners and decision-makers adopt blockchain technology, developing strategies and plans in the process.
This paper has two equally important research objectives. The first aim of the research is to identify key research areas addressed in scientific publications that simultaneously relate to blockchain, energy, and sustainability. In turn, the identification of green research areas in these publications is the second research aim. The indicated research aims were achieved on the basis of a bibliometric review of 205 scientific publications from 2017-2023 (Scopus database). By means of a systematic literature review, 25 different key research areas were identified. In turn, the classic literature review identified 18 green research areas (e.g. green blockchain). At the same time, no green issue was identified as a key research area. The results can inspire researchers looking for research gaps around blockchain and sustainability issues. Among the recommendations for stakeholders, the need for further research around blockchain technology, the development of a regulatory framework, or educational issues were highlighted.
Al Mothana Al Shareef, Serap Ulusam Seçkiner, Bilal Eid, Hasan Abumeteir
Recently, artificial intelligence (AI) and blockchain have become two of the most trending and disruptive technologies. Blockchain technology can automate payment in cryptocurrency and provide access to a shared ledger of data, transactions, and logs in a decentralized, secure, and trusted manner. In addition, with smart contracts, blockchain has the ability to govern interactions among participants with no intermediary or a trusted third party. AI, on the other hand, offers intelligence and decision-making capabilities to machines similar to humans. This review presents a detailed survey on blockchain and AI basics and features. This paper provides a review of the literature and a brief on the integration of blockchain and AI applications in multiple areas. We also identify some sole cases of blockchain–AI integration in the energy sector with current use cases. Eventually, we discuss research advantages and challenges associated with integrating blockchain with AI in the energy domain.
The environmental impact of Bitcoin mining has raised severe concerns considering the expected growth of 30% by 2030. This study aimed to develop a Life Cycle Assessment model to determine the carbon dioxide equivalent emissions associated with Bitcoin mining, considering material requirements and energy demand. By applying the impact assessment method IPCC 2021 GWP (100 years), the GHG emissions associated with electricity consumption were estimated at 51.7 Mt CO2 eq/year in 2022 and calculated by modelling real national mixes referring to the geographical area where mining takes place, allowing for the determination of the environmental impacts in a site-specific way. The estimated impacts were then adjusted to future energy projections (2030 and 2050), by modelling electricity mixes coherently with the spatial distribution of mining activities, the related national targeted goals, the increasing demand for electricity for hashrate and the capability of the systems to recover the heat generated in the mining phase. Further projections for 2030, based on two extrapolated energy consumption models, were also determined. The outcomes reveal that, in relation to the considered scenarios and their associated assumptions, breakeven points where the increase in energy consumption associated with mining nullifies the increase in the renewable energy share within the energy mix exist. The amount of amine-based sorbents hypothetically needed to capture the total CO2 equivalent emitted directly and indirectly for Bitcoin mining reaches up to almost 12 Bt. Further developments of the present work would rely on more reliable data related to future energy projections and the geographical distribution of miners, as well as an extension of the environmental categories analyzed. The Life Cycle Assessment methodology represents a valid tool to support policies and decision makers.
Based on the provincial panel data from China, this study explores the impact of digital finance on provincial carbon productivity. Further, the regional heterogeneity and spatial spillover effect, the moderating effects of financial supervision and environmental decentralization, and the mediating effect of green technology innovation are analyzed. The results show that digital finance can significantly improve provincial carbon productivity, and clearly promote carbon productivity in the underdeveloped provinces (i.e., central and western regions), but not in the economically developed provinces (i.e., eastern region). Digital finance has a positive spatial spillover effect on carbon productivity. In addition, financial supervision and environmental decentralization play moderating effects in the impact of digital finance on carbon productivity. Green technology innovation plays a partial mediating effect in the impact of digital finance on carbon productivity. This study provides a reference for improving carbon productivity and developing a low-carbon economy.
The trinity of global warming, climate change, and air pollution casts an ominous shadow over society and the environment. At the heart of these threats lie carbon emissions, whose reduction has become paramount. Blockchain technology and the internet of things (IoT) emerge as innovative tools for establishing an efficient carbon credit exchange. This paper presents a blockchain and IoT-centric platform for carbon credit exchange, paving the way for transparent, secure, and effective trading. IoT devices play a pivotal role in monitoring and verifying carbon emissions, safeguarding the integrity and accountability of the trading process. Blockchain technology, with its decentralized and immutable nature, empowers the platform with transparency, reduced fraud, and enhanced accountability. This platform aims to arm organizations and individuals with the ability to actively curb carbon emissions, fostering collective efforts towards global pollution reduction goals.
This paper highlights the growth and importance of stablecoins since they were launched 10 years ago. We outline their impact on the cryptocurrency ecosystem as well as the financial system as a whole, while also summarising the main findings in the literature. Finally, we outline future research directions. • This paper highlights the growth and importance of stablecoins since they were launched 10 years ago. • We outline their impact on the cryptocurrency ecosystem as well as the financial system as a whole. • We summarise the main findings in the literature. • Finally, we outline future research directions.
Umar Nawaz Kayani, Mirzat Ullah, Ahmet Faruk Aysan, Sidra Nazir · 5 authors
This study delves into an exploration of quantile connectedness across the domains of digital and traditional financial assets with the renewable energy prices index. The daily frequency dataset, spanning from January 02, 2018, to December 04, 2023, encapsulates diverse economic crises. Our inquiry elucidates distinctive patterns by employing empirical analyses utilizing quantile connectedness and Time-Varying Parameter Vector Autoregressive (TVP-VAR) methodologies. In this context, DeFi assets (Chain-link) emerge as the primary recipient of information shocks, while Bitcoin distinguishes itself as the preeminent transmitter of such shocks within the network. Notably, digital assets manifest heightened volatility in contrast to traditional and energy indices. Furthermore, our findings underscore that the gaming industry, specifically focusing on Non-Fungible Tokens (NFT), presents itself as the most fitting asset for portfolio inclusion. This assertion gains credence from its comparatively lower degree of connectedness with other underlying assets. These findings have significant implications for investors and portfolio managers, furnishing valuable insights into the dynamics of asset interdependencies. Consequently, this aids in cultivating a more discerning approach to investment decision-making. • Bitcoin is a significant transmitter of shocks, whereas DeFi assets like Chain-link predominantly receive them, highlighting their central roles in financial networks. • Digital assets exhibit higher volatility than traditional and energy assets. The gaming industry, notably through Non-Fungible Tokens (NFTs), offers potential for portfolio diversification due to their minimal connectedness with other asset classes. • The study provides critical insights into the interconnectedness of various assets, crucial for investors and portfolio managers to refine investment strategies and enhance decision-making.
Ijaz Younis, Muhammad Abubakr Naeem, Waheed Ullah Shah, Xuan Tang
This study analyzes the inter-dependence of the oil, gold, Bitcoin (BTC), and Gulf Cooperation Council stock markets during the recent Russia–Ukraine and Israel–Palestine conflicts. The study found that these markets were less inter-connected during oil battles and the Russia–Ukraine conflict but more inter-connected during the COVID-19 crisis. Findings indicated that Oman, Kuwait, gold, and Qatar are the most significant spillover receivers, whereas the United Arab Emirates (UAE), Kingdom of Saudi Arabia, and West Texas Intermediate are the primary risk spillover transmitters in the Israel–Palestine conflict. Additionally, BTC and the UAE are significant transmitters, whereas Kuwait and Qatar are the highest-risk spillover receivers in the Russia–Ukraine war. Portfolio estimates revealed that gold, BTC, and/or oil are useful in various equity markets for portfolio diversification and hedging under different market conditions and time horizons. These data can guide managers in portfolio construction and risk diversification. • We examine the connectedness between oil, gold, bitcoin, and the GCC equity markets. • Gold is the net recipient in all frequencies and sub-sample periods. • Connectedness becomes lower in the oil battles, while higher in the COVID-19. • Oil (bitcoin) is the net recipient during the oil battle periods. • We estimate optimal portfolio weights and hedge ratios for portfolio strategies.
Tecnológico de Estudios Superiores de Valle de Bravo, Adalberto González-Flores
The development of a monetary system that includes advancing the understanding of the factors that affect the price of cryptoassets. Halving is a unique event in the Bitcoin ecosystem that halves the reward per mined block. Studying its impact on the price would allow a better understanding of the supply and demand dynamics that determine the market value of bitcoin and other cryptocurrencies.
<div> Blockchain technology is making a huge difference in the global technology system where it proves better security than traditional system, gaining trust among users for transparency and solving many problems which the current economy is facing. Transaction being done via decentralized network has gasps attractions of many industries including shipping, healthcare and supply chain with less time and accuracy. The decentralized Finance system is solving problems including traditional banking accessibility in remote regions where banks are not available for transactions, Decentralized Finance (DeFi) which reduces cost of infrastructure and mankind by providing direct access to their asset and trade via internet. Although there are governments policies and regulations that are still not clear amongst many countries, even technology is for good but not able to use it due to limited knowledge and guidance. This paper explores how the global economy can be put in such a situation where new technology can not only help government bodies to tackle traditional finance challenges but also mitigate risks, tackle cybercrimes and increase transparency so that everyone across globe can feel secure about innovation in blockchain. This paper will also do analysis of how big data is making a difference in global economy and how government policies are affecting big data and blockchain technology. </div>
Taher Al‐Shehari, Mohammed Kadrie, Taha Alfakih, Hussain AlSalman · 9 authors
The rise of Electric Vehicles (EVs) has introduced significant advancement and evolution in the electricity market. In smart transportation, the EVs have earned more popularity because of its numerous benefits including lower carbon footprints, higher performance, and sophisticated energy trading mechanisms. These potential benefits have resulted in widespread EV adoption across the world. Despite its benefits, energy management remains the biggest challenge in EVs and it is mainly because of the lack of Charging Stations (CSs) near EVs. This creates a demand for an effective, secure and reliable energy management framework for EVs. This study presents a secure data and energy trade paradigm based on Blockchain (BC) in the Internet of EVs (IoEV). BC technology prepares for the high volume of EV integration that serves as the foundation for the next generation, and to assist in developing unique privacy-protected BC-based D-Trading and storage Models. Entities evaluated for the proposed model include Trusted Authority (TA), Vehicles, Smart Meters, Roadside Units (RSU), BC, and Inter-Planetary File System (IPFS). In addition, E-trading involves several phases, including the acquiring E-trading demand requests, E-trading response requests, request matching and token assignment. Moreover, account mapping is performed using a Mayfly Pelican Optimization Algorithm (MPOA), which is created by merging the Mayfly Algorithm (MA) and Pelican Optimization Algorithm (POA). Various security features are used to protect data and energy trade in IoEV, including encryption, hashing, polynomials, and others. The testing results revealed that the MPOA outperformed the state-of-the-art results regarding memory consumption, trading rate, transaction cost, and trading energy volume with values of 4.605 MB, 91%, 0.654, and 90 kW, respectively.
Since the financial crisis, bitcoin has become a pioneer among virtual currencies, and much attention has been focused on its mechanisms, market risk and expected development. Despite extensive research into these aspects, the broader significance of bitcoin's existence has gone unnoticed. A critical facet is Bitcoin mining, notorious for its substantial energy consumption and subsequent carbon emissions. This dynamic interplay with the environment and energy market is a pivotal yet understudied aspect of Bitcoin's impact. Consequently, this paper seeks to fill this research gap by synthesizing existing literature on the repercussions of bitcoin mining on energy consumption and the environment. By delving into the intricate relationship between Bitcoin mining and its environmental consequences, the paper aims to shed light on a critical yet often neglected dimension. Furthermore, the analysis extends to examining the responsiveness of prevailing government policies to address the environmental concerns associated with Bitcoin mining. This endeavor underscores the necessity for a comprehensive understanding of the broader consequences of cryptocurrency activities, particularly in the realm of energy consumption and environmental sustainability.
This study employs the Shanghai Environment and Energy Exchange as a case study to investigate the effects of blockchain technology applications on transaction prices within the carbon trading market. Utilizing an event study methodology, the research demonstrates that blockchain technology significantly enhances the transparency, security, and efficiency of the carbon market, thereby exerting a positive influence on transaction prices. Nonetheless, the study also identifies several challenges associated with blockchain applications, including increased costs, heightened energy consumption, transaction delays, and substantial learning costs. To mitigate these issues, the study proposes optimizing blockchain architecture, incorporating Layer 2 technologies to expedite transaction processes, and developing innovative regulatory frameworks.
Abstract Electric vehicles (EVs) and their battery recycling have recently garnered heightened attention from both firms and consumers, primarily driven by concerns related to environmental sustainability. However, consumers often grapple with uncertainties regarding the green valuation of EVs. Integrating blockchain traceability technology presents a promising solution to mitigate these ambiguities by providing traceable, immutable, and precise information. Within this context, this research, grounded in a game-theoretical framework, delves into the strategies involving blockchain traceability in the pre-purchase and post-purchase stages of EVs. Specifically, the paper analytically studies the influence of three distinct strategies, namely, non-blockchain traceability, forward blockchain traceability, and Forward–reverse blockchain traceability, on the willingness of EV manufacturers to adopt blockchain technology. In addition, the study incorporates two prevalent government subsidies to scrutinize and contrast their implications on optimal outcomes. The findings of this study uncover the nuanced relationship between adopting blockchain traceability and its impact on EV sales. Notably, the research shows that the positive impact on consumers’ surplus from blockchain adoption depends on the cost coefficient of green low-carbon levels not exceeding a particular threshold. Moreover, regarding the use of government subsidies to enhance overall social welfare, it is shown that the forward blockchain traceability strategy should align with consumer-oriented subsidies and the Forward–reverse blockchain traceability strategy with EV maker-oriented subsidies.
In modern society, the proliferation of electric vehicles (EVs) is continuously increasing, presenting new challenges that necessitate integration with smart grids. The operational data from electric vehicles are voluminous, and the secure storage and management of these data are crucial for the efficient operation of the power grid. This paper proposes a novel system that utilizes blockchain technology to securely store and manage the black box data of electric vehicles. By leveraging the core characteristics of blockchain—immutability and transparency—the system records the operational data of electric vehicles and uses federated learning (FL) to predict their energy consumption based on these data. This approach allows the balanced management of the power grid’s load, optimization of energy supply, and maintenance of grid stability while reducing costs. Additionally, the paper implements a searchable black box data storage system using a public blockchain, which offers cost efficiency and robust anonymity, thereby enhancing convenience for electric vehicle users and strengthening the stability of the power grid. This research presents an innovative approach to the integration of electric vehicles and smart grids, exploring ways to enhance the stability and energy efficiency of the power grid. The proposed system has been validated through real data and simulations, demonstrating its effectiveness and performance in managing black box data and predicting energy consumption, thereby improving the efficiency and stability of the power grid. This system is expected to empower electric vehicle users with data ownership and provide power suppliers with more accurate energy demand predictions, promoting sustainable energy consumption and efficient power grid operations.
Dünyada meydana gelen iklim krizi, enerji kaynaklarının azalması, insan kaynaklı çevresel bozulmalar, karbon emisyonu ve diğer zararlı gazlar hem insan yaşamını hem de diğer canlı türlerinin yaşamını olumsuz etkilemektedir. Bu zararı en aza indirmek ve sürdürülebilir yaşam koşullarını sağlamak için atmosfere zarar veren zararlı gazlardan karbon salınımını en aza indirmek için birtakım anlaşmalar ve düzenlemeler yapılmaktadır. Bu çalışmada, Bitcoin üretiminin karbon emisyonu üzerindeki etkisi incelenmektedir. Bu kapsamda, modele dahil edilen değişkenler arasındaki uzun ve kısa dönem ilişki 25 gelişmekte ve gelişmiş ülke için çeşitli ekonometrik yöntemler ile test edilmiştir. Çalışmada, bağımlı değişken olarak seçilmiş ülkelerin karbon emisyon değerleri, bağımsız değişkenler olarak ise, seçilmiş ülkelerin gayri safi milli hasılası, enerji tüketimi ve Bitcoin üretim verileri kullanılmıştır. Çalışmanın sonucunda, Bitcoin üretimi ile enerji tüketimi, gayrisafi milli hasıla ve karbondioksit emisyonu arasında uzun dönemli ve negatif bir ilişki tespit edilmiştir. Ayrıca, panel nedensellik test sonuçlarına göre, Bitcoin üretiminden karbon emisyonuna doğru tek yönlü bir nedensellik ilişkisi tespit edilmiştir. Bu çalışma, iklim değişikliği üzerine politika geliştiren politikacılar ve çevre üzerine çalışma yapan ilgili taraflar için önemli sonuçlar içermektedir.