This study aims to analyze the causal relationship between electricity consumption, price and transaction volume of Bitcoin, which is the most important asset of the crypto money market in terms of both market capitalization and transaction volume. In this study, the Bitcoin electricity consumption variable is represented by Cambridge Bitcoin Electricity Consumption Index. As the data set, 1446 days of data between February 2017 and February 2021 were used. The causality relationship between the variables is analyzed using the Hatemi-J (2012) and Toda Yamamoto (1995) tests. In addition, this study is a rare study that examines the relationship between electricity and volume, together with the work done by Schinckus et al. (2020). According to the results of this study, the decrease in Bitcoin electricity consumption causes a decrease in the Bitcoin price. However, a negative relationship is detected Bitcoin electricity consumption and Bitcoin trade volume in this study, like the study by Schinckus et al. (2020), the relationship was found to be very weak.
Susilo Nur Aji Cokro Darsono, Wing‐Keung Wong, Tran Thai Ha Nguyen, Dyah Titis Kusuma Wardani
This study examines the effect of economic policy uncertainty (EPU) on sustainable investment returns by using panel data of stock market returns and the EPU index from twelve countries for the period from April 2015 to December 2020. In addition, precious metal prices, energy prices, and cryptocurrency prices are used as control variables. To do so, we investigate the impact of EPU, gold prices, oil prices, and Bitcoin prices on stock market returns by using the panel autoregressive distributed lag (ARDL) model to examine both the long-run correlation and short-run effect. Our findings show that EPU, gold prices, oil prices, and Bitcoin prices have a time-varying significant impact on sustainable stock market returns. We discovered that EPU has a significantly negative impact on the returns of the sustainable stocks in the markets over the long run. In contrast, the rise of the gold price, oil price, and Bitcoin price have a significantly positive impact on the returns of the sustainable stocks in the twelve sustainable markets in the long run. On the other hand, EPU in Singapore, Spain, the Netherlands, and Russia has a significant short-run impact on market returns in each country. Based on the findings, managers and investors in the sustainable stock markets are highly recommended to pay more attention to the volatility of EPU, gold prices, oil prices, and Bitcoin prices in the short run to control the risk of returns in the sustainable stock market. Furthermore, policymakers must closely monitor the movement of the EPU index, as it is a major driver of sustainable stock market returns.
Blockchain technology is considered to be a disruptive technology that has real potential for change after steam engines, electricity, and the Internet. However, in terms of power generation, the current level of hydropower development in my country is only 39%. Compared with developed countries, there is still a big gap and a high development space. This article proposes a research on the application of blockchain technology in smart sustainable energy business models, studies the conversion path of sustainable energy systems, introduces integrated energy service blockchain technology, and builds a sustainable energy transition model. The selection of practical dimensions requires both Quantitative indicators also require cultural and behavioral qualitative indicators; finally, through the analysis of social development trends and government policies, the external variable landscape signals are parameterized. Sustainable energy rather than fossil energy is the energy of the future. Weak landscape signals have significantly weakened the development of the sustainable energy niche: the proportion of coal consumption has declined slowly. Although it has transformed from a system to a niche, it has always been higher than that of other energy types. Only with long-term landscape pressure, positive changes to sustainable energy technologies and infrastructure, and continuous changes in consumer preferences, can sustainable energy ultimately dominate.
Cryptocurrencies are gaining more popularity due to their security, making counterfeits impossible. However, these digital currencies have been criticized for creating a large carbon footprint due to their algorithmic complexity and decentralized system design for proof of work and mining. We hypothesize that the carbon footprint of cryptocurrency transactions has a higher dependency on carbon-rich fuel sources than green or renewable fuel sources. We provide a machine learning framework to model such transactions and correlate them with the electricity generation patterns to estimate and analyze their carbon cost.
Samuel Asumadu Sarkodie, Maruf Yakubu Ahmed, Thomas Leirvik
The environmental sustainability of bitcoin is making waves in the empirical literature, yet, no study has thus far examined the financial determinants of bitcoin energy consumption and carbon footprint. Here, we use novel estimation methods comprising dynamic ARDL simulations and general-to-specific VAR to examine steady-state effects, cumulative impulse-response, and counterfactual shocks of bitcoin trade volume on bitcoin energy bitcoin carbon footprint to ensure genuine causal inferences. We observed an increase in bitcoin trade volume spur both carbon and energy footprint by 24% in the long-run, whereas a dynamic shock in trade volume escalates bitcoin energy and carbon footprint by 46.54%.
Due to data limitations on bitcoin-related emissions, assessing the environmental impacts of bitcoin appear difficult. This data in brief article presents constructed daily frequency dataset on bitcoin annualised carbon footprint spanning July 7, 2010 to December 4, 2021 with 4,158 observations. The 12 data variables capture floor, ceiling, and optimal annualised carbon footprint from coal, oil, gas, and the average from the 3 sources. The constructed bitcoin carbon footprint data are measured in kgCO2 using emission factors for electricity generation from IEA World Energy Outlook. The data will benefit multidisciplinary research on cryptocurrency from environmental, energy, and economics disciplines.
Xuejia Sang, Xiaopeng Leng, Linfu Xue, Xiangjin Ran
The energy consumption and carbon footprint of cryptocurrencies have always been a popular topic. However, most of the existing studies only focus on one cryptocurrency, Bitcoin, and there is a lack of long-term monitoring studies that summarize all cryptocurrencies. By constructing a time series hash rate/power model, this research obtained the 10-year time series data on energy consumption dataset of global top-25 cryptocurrencies for the first time. Both the temporal coverage and the spatiotemporal resolution of the data exceed previous studies. The results show that Bitcoin’s power consumption only accounts for 58% of the top-25 cryptocurrencies. After China bans cryptocurrencies, the conservative change in global CO2 emissions from 2020 will be between −0.4% and 4.4%, and Central Asian countries such as Kazakhstan are likely to become areas of rapid growth in carbon emissions from cryptocurrencies.
Bu çalışmada temel piyasalar arasındaki volatilite yayılımları Diebold ve Yılmaz (2012) tekniğiyle araştırılmıştır. Temel piyasaları temsilen MSCI dünya endeksi, ABD 2 yıllık devlet tahvil faizi, dolar endeksi, ons altın, brent petrol ve bitcoin kullanılmıştır. Çalışmada 2 Ocak 2015 – 29 Haziran 2021 dönemine ait günlük verilerden elde edilen volatiliteler kullanılmıştır. Çalışmada, temel piyasalar arasındaki volatilite yayılım endeksinin %30,9 olduğu, faiz ve MSCI dünya endeksinin volatilite yayıcısı buna karşın dolar endeksi, altın, petrol ve bitcoinin volatilite alıcısı oldukları, faizin temel piyasalarda önemli volatilite yayıcısı olduğu, bitcoinin temel piyasalarla volatilite ilişkisinin zayıf olduğu ve temel piyasalar arasındaki volatilite yayılımlarının COVID-19 sürecinde yükseldiği belirlenmiştir. Elde edilen sonuçlar, portföy yönetimi, risk yönetimi, yatırımlar, ekonomi yönetimleri açısından kullanılabilirlik taşımaktadır.
The synergy of clean energy and electric vehicles (EVs) is highly relevant in achieving low-carbon development. To promote the coordinated development of EVs and photovoltaics (PV) under the background of open power selling, a PV–EV bidding model that considers carbon emissions based on the distributed storage and smart contract technology of a blockchain is proposed in this study. This model aims to provide economic benefits to market players, ensure the safety and environmental protection of power grid operations, and integrate the ladder-type carbon emission trading mechanism. Then, it divides the electricity market into the electricity sales layer, i.e., active distribution networks (ADNs) and PV systems, and the electricity purchase layer, i.e., EVs. Smart contracts are signed with the agent layer, i.e., charging stations. The improved particle swarm optimization algorithm is used to solve the price and power of PV systems and EVs in the optimal contract, and the revenue of PV systems and EVs can be increased by over 35%. Moreover, the orderly charging and discharging of EVs is coordinated with the characteristics of the daily power generation and evening load peaks of PV systems. The proposed model can effectively provide an optimal scheduling scheme for peak load shifting and valley filling while reducing the carbon emissions of ADNs. It also promotes the local consumption of PV.
Cryptocurrencies have seen a meteoric rise in their adoption and value over the past decade. For instance, the most widely-traded cryptocurrency, Bitcoin, which started at only a few cents per token in 2009 when it was first mined [1], crossed an all-time high price of more than USD68,000 in November 2021 Largely made possible with the rise of blockchain technology, a cryptocurrency is essentially a digital form of money that allows the transfer of value directly between users, without requiring an intervening financial institution A blockchain is a system where records of transactions are distributed across multiple users in a network as encrypted 'blocks ' [1,3,4]. The users in a blockchain network participate in both the creation of new tokens (equivalent to 'minting' new money), as well as the authentication of these records through complex mathematical operations on their computers, which is referred to as 'mining ' [1]. This decentralized 'distributed ledger' prevents the false modification of records [3] and allows for a more secure, trustworthy and scalable way to make financial transactions These advantages have led to significant growth in this sector.
Jon Truby, Rafael Dean Brown, Andrew Dahdal, Imad Antoine Ibrahim
The art industry has commercialised and popularised non-fungible tokens (NFTs), with the volume and value of NFT transactions rapidly growing to US$ 10.7 billion in Q3 2021. The increase in NFT transactions has drawn the attention of the art market to the consequent carbon emissions resulting from verifying transactions in proof-of-work blockchains supporting NFT transactions. With CO2-related deaths attributable to NFT transactions, social pressure from the art market has helped to progress the switch away from the deliberately polluting proof-of-work blockchains to more sustainable consensus protocols. Nonetheless, many popular types of blockchain have resisted the pressure to decrease their environmental impact, including Bitcoin, whose attributed 2021 annual emissions will produce emissions responsible for around 19,000 future deaths. In response, recent global policy interventions have employed legal and fiscal tools to reduce the carbon impact of some or all types of blockchains. Linking the damage caused by proof-of-work blockchains to climate change and human mortality, this study examines the recent policy interventions designed to motivate a shift in blockchain consensus protocols and promote miners' energy efficiency to mitigate environmental damage. This article further explores available policy intervention options that are currently not utilised.
Logistics plays a major part in any country's or region's economic success. Logistics performance depends upon the trade between other countries and urbanization. Urbanization has major role in logistics performance. However, being a significant energy user, logistics has negative consequences. As the logistics performance increases, carbon emissions increase as well because of more transportation and urbanization. Logistics performance has positive effects related to trade openness which reduces carbon emissions. As a result, it is necessary to understand function of logistics from both economic and environmental standpoint. Logistics performance is affected by urbanization of any region. The dataset for this research is made up of 10 Asian nations with 550 observations from 2010 to 2018 and is based on the theoretical underpinnings of impact of population affluence and technology (IPAT) and stochastic impacts by regression on population affluence and technology (STIRPAT). After applying various tests like cointegration analysis, unit root test, cross-sectional dependence now long & short-term relation of variables is studied by Cross-sectionally augmented autoregressive distributed lag (CS-ARDL). As indicated by the discoveries, the logistic performance index (LPI) is basically effective on economic growth and carbon emissions, particularly when related to IPAT and STIRPAT. The findings are reviewed, and policy implications are offered, which say that current logistical infrastructure should be transformed to more environmentally friendly operations. Finally, the limits are acknowledged, as well as future research possibilities that should be pursued.
Global warming caused by greenhouse gases is one of the problems that need to be solved urgently. Blockchain technology can achieve automatic quota certification and settlement, providing a new direction for carbon emissions trading. This paper provides a quantitative analysis of blockchain-based carbon emissions trading through the Repast simulation platform. Firstly, it designs the blockchain-based carbon emissions trading simulation framework from a macro perspective, including identity and quota certification, quota trading, risk prevention and smart contracts management. Then, it establishes a blockchain-based carbon emissions trading simulation model and formulates the behavior rules of the government, investors and company agents and market transaction processes. Finally, it simulates the carbon emissions trading based on public chain and private chain on the Repast platform, and analyzes the simulation results.
Most of the world’s countries are concerned with reducing harmful gas emissions. Some governments have made considerable attempts to address this problem. Saudi Arabia, for example, has taken significant steps to utilize renewable energy (RE) sources in addition to oil and gas. Consumers are encouraged to build small RE systems. These small grids will help people meet their daily electrical energy requirements. They can sell the excess to other customers. One of the major issues is managing the distribution and sale of RE. Blockchain-based peer-to-peer (P2P) networks can help overcome several obstacles to the implementation of a distributed RE management system (DREMS). However, several impediments may still stand in the way of its execution. Scalability and productivity are two of the most important considerations. The number of transactions made to the Blockchain network will increase in lockstep with the number of energy consumers. This will result in a significant lag in response. Understanding the renewable distributed energy system will aid in minimizing the effects of these roadblocks. Therefore, this research identifies the RE systems installation approaches, and how Blockchain technology can be utilized. It provides the solution requirements of any DREMS. Moreover, it proposes a new Blockchain-based framework for DREMS. And designs selective protocols of the proposed framework. The designed protocols are evaluated through a comparative analysis with the state of the art identified requirements.
Renewable Energy Certificate (REC) is a market-based instrument and tracking mechanism for electricity generated from renewable sources as they flow into the power grid. The current REC issuance and tracking system is centralized, highly regulated, and operationally expensive. We proposed a blockchain-based, decentralized platform for REC issuance and trading by allowing greater traceability and transparency in transactions and reducing the operational costs of REC exchanges. The main design of the platform is to tokenize RECs and provides a decentralized, trustworthy mechanism for REC issuance, trading, verification, and retirement. The platform provides low costs, transparency, and easy to use. Representing RECs as blockchain tokens ensures that the trustworthy information is immutably recorded and available for all stakeholders to track and verify, thereby improving the reliability and security of the REC issuance and tracking systems. We present the design of the platform and detailed simulations of REC issuance and trading.
This paper aims to analyze and compare the ability of bitcoin, gold, and dollar to diversify the risk of traditional market such as crude oil and stock markets. Specifically, we model the linkages between bitcoin, gold, dollar, crude oil, and stock markets using the GARCH‐EVT‐copula approach. The results show that the gold market is in the central position among these markets, which is consistent with the status of gold as a major safe asset. Before the outbreak of COVID‐19, bitcoin and the dollar also had the ability to diversify risks, although less effective than gold. However, during the COVID‐19 period, gold loses its dominant position and gold, bitcoin, and dollar can no longer act as a hedge. We measure the value at risk (VaR) and expected shortfall (ES) of simulated portfolios constructed based on these five markets and use several backtesting methods to check the validity of the risk measures. The backtesting results show that our model can provide accurate risk measures before and within the COVID‐19 period, which may help investors and risk managers construct the optimal portfolios.
The applicability of the existing Nigerian laws to the NFTs ecosystem has for a while formed a subject of debate among observers and players in the business. Although relatively new, the NFT industry has proven to be one of the most rewarding of all digital assets in the tech space with millions of people pivoting into the space yearly. According to reports, over $41 billion in cryptocurrency was spent on NFT platforms and approximately $28.6 million wallets traded NFTs only in 2021. Thus, in furtherance of the function of law as a mechanism for establishing acceptable standards in all systems, the authors of this work have examined below, the legal issues and applicable framework of the NFT business in Nigeria. While there may have been many unregulated questions regarding the Nigerian NFTs ecosystem, the authors submitted below that, laws and regulations governing Intellectual Property, Data Privacy and Protection, Taxation, and Cybercrime, among others, can potentially regulate the affairs of those who deal in the NFT space.