<abstract> <p>In this article, we describe the novel properties of Bitcoin and green financial assets and empirically examine the connectedness between Bitcoin and two green financial assets (i.e., carbon emissions, green bonds) and two representative markets of conventional assets (i.e., oil and emerging stock). This study also analyzes whether Bitcoin, carbon, green bonds, oil, and emerging stock assets can hedge against any market turbulence. From observed findings, Bitcoin was not an effective substitute for green bond assets. Thus, Bitcoin is not a valuable hedge instrument to substitute green bonds to mitigate climate risks. More precisely, the findings of the study show that carbon assets outperform emerging stock assets amidst the COVID-19 crisis, while the stock markets incurred significant losses. Crucially, the innovative findings also played an important role for policymakers interested in decarbonizing the crypto-assets.</p> </abstract>
This study emphasizes the implication of dynamic connection between digital currency and Nigerian economic growth rate by focusing attention on Bitcoin, Ethereum and Litecoin with respect to their returns and volatility from 2010Q4 to 2022Q3. As a way to have a robust estimation, we model our analysis using ARDL model and granger causality test. This model is rather useful to have both short and long run estimations. Importantly the study’s outcome conforms with the fundamentals. By findings from the study, the trend analysis suggests that the country’s exchange rate moves in line with digital currency activities while at the same time signifies some implication on the growth rate of the Nigerian economy. While lower returns for Bitcoin and Litecoin increase growth rate, the return for Ethereum rather move in the same direction as the growth rate. This indeed suggest that most Nigerians into digital currency activities often engage in portfolio diversification among available coins. The study further found that low volatility in the market will raise (significantly especially for Ethereum) growth rate of the economy while causal implication run from returns and volatilities of these coins to growth and exchange rates. Indeed, the findings have important policy implication for the Nigerian economy which suggests paying good attention to digital currency activities in the country and formulating necessary policies to improve it.
In order to explore the impact of the application of blockchain technology on enterprise performance, as well as the mechanism of enterprise risk and the information disclosure quality on this impact process, and taking the data of A-share listed companies in China’s manufacturing industry from 2015 to 2022 as a research sample, this paper adopts methods such as multi-period difference-in-differences (DID) modeling to conduct an empirical investigation. Findings: The application of blockchain technology can improve enterprise performance. Enterprise risk plays a partial mediating effect, because blockchain technology can reduce enterprise risk and thereby improve enterprise performance. Information disclosure quality has an inhibitory influence on the process by which blockchain technology affects enterprise risk and a facilitating influence on the process by which enterprise risk affects enterprise performance. The results show that manufacturing enterprises with low information disclosure quality can reduce enterprise risk by combining with blockchain technology in production, management, and other aspects, thus improving enterprise performance and promoting sustainable development of enterprise economy.
An overview of blockchain fundamentals and its potential benefits for sustainability is provided. The role of expertise as an intermediary on the blockchain to drive transparency and accountability is examined. This research examines the potential of blockchain technology in the field of economic management and to drive future sustainable development in emerging companies, which are referred to as hidden champions. This study addresses the need for transparent and responsive practices that promote social stability, economic growth, and environmental sustainability. The goals are to analyze economic functions, investigate the formation of appropriate economic patterns, facilitate equitable distribution, and support environmental protection efforts. The research method includes case studies and theoretical frameworks to collect relevant data. The results emphasize the importance of balancing competing interests, promoting security, and strengthening inclusive decision-making processes. This study emphasizes the intersection between economic development and environmental protection and highlights the role of sustainability criteria in guiding land use practices. The conclusion emphasizes that sustainable economic practices are critical for social, economic and environmental development, especially in emerging economies. Practical recommendations are provided to policymakers and stakeholders to improve economic governance frameworks and help achieve the Sustainable Development Goals.
As a pivotal innovation in digital infrastructure, blockchain ledger technology catalyzes the development of nascent business paradigms and applications globally. Utilizing Rothwell and Zegveld's taxonomy of twelve innovation policy tools, this study offers a nuanced comparison of domestic blockchain policies, dissecting supply, environment, and demand-driven policy dimensions to distill prevailing strategic orientations towards blockchain healthcare adoption. The findings indicate that blockchain technology has seen rapid growth in the healthcare industry. However, a certain misalignment exists between the corporate and policy layers in terms of supply and demand. While companies focus more on technological applications, existing policies are geared towards regulations and governance. Government emphasis lies on legal supervision through environmental policies, aiming to guide the standardization and regulation of blockchain technology. This maintains a balance between encouraging innovation and market and legal regulatory order, thereby providing a reference for the development of the distributed intelligent healthcare industry in our country.
This study seeks to investigate how distributed ledger technology can be applied to the green bond market. Second, this study examines how green bonds can finance the suck cost of decarbonizing the ammonia industry. Third, this study seeks to forecast the spot price of ammonia. This forecast is relevant since the bond’s coupon should be indexed and linked to the price of ammonia. The proposed tokenized indexed-green bond is a new idea that leverages the technologies of distributed ledgers, indexation, and green bonds. No study to current date has undertaken such research that integrates these technologies to fund the decarbonization of the ammonia industry. Data was collected on the spot price of ammonia from the Central Bank of Trinidad and Tobago online database at the monthly frequency over the January 1991 to June 2023 period. The applied forecasting methodology was a hybrid framework combining Particle Swarm Optimization and Support Vector Regression. This study found that an out-of-sample forecast for ammonia prices would be US$438.89/ton in the 1st quarter, US$289.99/ton by the 2nd quarter, US$448.30/ton by the 3rd quarter, and US$331.57/ton by the 4th quarter. The decarbonization of the ammonia industry is technically possible. Economically, it would involve leveraging several technologies such as green bond financing, tokenization, and indexation. Received: 26 May 2023 | Revised: 1 September 2023 | Accepted: 3 December 2023 Conflicts of Interest The author declares that he has no conflicts of interest to this work. Data Availability Statement Data available on request from the corresponding author upon reasonable request. Author Contribution Statement Don Charles: Conceptualization, Methodology, Software, Validation, Formal analysis, Investigation, resources, data curation, Writing - original draft, Writing - review & editing, Visualization, Supervision, Project administration.
Finding suitable safe haven opportunities to protect emerging investments, such as cryptocurrencies, from external factors, such as Geopolitical risk, is a major concern for investors. Recognizing safe havens for these assets can help investors and traders manage risk, stabilize their portfolios, diversify their investments, and preserve capital against Geopolitical risk. To find the safe havens for cryptocurrencies regarding Geopolitical risk, this study proposes an approach to identifying the most suitable safe havens for cryptocurrencies highly affected by Geopolitical risk. First, the study identifies the cryptocurrencies that are more influenced by Geopolitical risk than others; by this, the assets that require hedging are discovered. Then, a new method, quantile-on-quantile regression, is employed to test the hedging ability of multiple assets from different markets. Once the outcomes of the quantile-on-quantile regression are cleared, the hedge effectiveness index by dynamic conditional correlation GARCH is calculated to validate the results. Both methods yield similar results, suggesting that the Forex market and stock indexes are the most suitable options as safe havens for cryptocurrencies. The study also finds that assets from the energy sector of the commodity market, such as Crude Oil and Natural Gas, are the weakest safe haven options.
<abstract> <p>In this paper, we aim to uncover the dynamic spillover effects of Bitcoin environmental attention (EBEA) on major asset classes: Carbon emission, crude oil and gold futures, and analyze whether the integration of Bitcoin into portfolio allocation performance. In this study, we document the properties of futures assets and empirically investigate their dynamic correlation between Bitcoin, carbon emission, oil and gold futures. Overall, it is evident that the volatility of Bitcoin, as well as other prominent returns, exhibit an asymmetric response to good and bad news. Additionally, we evaluate the hedge potential benefits of these emerging futures assets for market participants. The evidence supports the idea that the leading cryptocurrency-Bitcoin can be a suitable hedge instrument after the COVID-19 pandemic outbreak. More importantly, our analysis of the portfolio's performance shows that carbon emission futures are diversification benefit products in most of the considered cases. Notably, incorporating carbon futures into portfolios may attract new investors to carbon markets for double goals of risk diversification. These findings also provide insightful evidence to investors, crypto traders, and portfolio managers in terms of hedging strategy, diversification and risk aversion <sup>[<xref ref-type="bibr" rid="b19">19</xref>,<xref ref-type="bibr" rid="b20">20</xref>,<xref ref-type="bibr" rid="b21">21</xref>,<xref ref-type="bibr" rid="b22">22</xref>,<xref ref-type="bibr" rid="b23">23</xref>,<xref ref-type="bibr" rid="b24">24</xref>,<xref ref-type="bibr" rid="b25">25</xref>]</sup>.</p> </abstract>
Belén Gill de Albornoz Noguer, Juan Ángel Lafuente, Mercedes Monfort, Javier Ordóñez
This paper explores the role of Economic Policy Uncertainty (EPU) as driver of the Bitcoin public attention. Using Google trends data from January 2010 to November 2021 in a set of 22 countries, a Principal Components Analysis reveals a strong unique commonality on the internet searching patterns for Bitcoin across countries, which suggests that the potential explaining factors of the Bitcoin attention should be global instead of local. The multivariate analysis corroborates this hypothesis since EPU at the country level does not play a significant role in explaining the searching patterns on Google for Bitcoin, while the global EPU does.
Cryptocurrencies, which started with Bitcoin, which was released differently from traditional payment and investment tools, have large transaction volumes today. In addition to the many economic benefits of cryptocurrencies, which are used both as a payment tool and as a financial investment tool, high energy consumption and a heavy carbon footprint come with them. With the owner of the automaker Tesla stating that he is worried about the increasing use of fossil fuels in Bitcoin mining and cutting its support for Bitcoin, the price of Bitcoin has fallen sharply, while green cryptocurrencies have reached historical peaks. This situation reminded the investors that they should handle risky investments carefully and also highlighted the importance of green investment tools. Understanding the relationship between green cryptocurrencies and other assets is essential for investors looking to expand their portfolios and seize emerging opportunities. In this direction, the study examined whether green cryptocurrencies are a safe haven against non-green cryptocurrencies in the period of January 2022–July 2023. In the analysis, DCC-GARCH analysis, risk, and return analyses were performed for safe haven. According to the analysis' findings, among cryptocurrencies, green cryptocurrencies are most likely to be a safe haven for investors.
Cryptocurrencies are popular investment tools nowadays. Recently, with requirements for environmental friendliness, green cryptocurrencies emerged, providing market participants with new sustainable options. The interrelatedness between cryptocurrencies and green financial assets should be comprehensively examined. This article examines spillover effects among major cryptocurrencies, green cryptocurrencies, and green financial assets, based on the latest quantile connectivity framework. Cryptocurrencies are verified as net spillers generally, while green assets are net receivers. Connectedness is stronger in extreme market conditions and is obviously affected by the COVID-19 pandemic and the Russia–Ukraine War. Additionally, heterogeneity of green cryptocurrencies is evident, with net spillover direction varying over time and market conditions. The research has reference value for investors, policymakers, regulators, and environmentalists.
Significant climate change has aroused public attention and prompted concentrated research on its impact on the financial market. Using the index of cryptocurrency environmental attention as a proxy for climate risk, this paper investigates the impact of climate risks on cryptocurrency volatility using GARCH-MIDAS (GM)-based models. The in- and out-of-sample analyses demonstrate that climate risks can negatively affect cryptocurrency volatility. The CVI index is positively related to short-term volatility, and the inclusion of it can increase the goodness-of-fit of GM-based models. Moreover, we find that GM-X-student’s t model achieves the best out-of-sample forecasting capability and always enters the model confidence set. These conclusions remain robust for alternative data frequency, green cryptocurrencies, and train-test splits.
Shoaib Ali, Muhammad Naveed, Hasan Hanif, Mariya Gubareva
This study investigates the return spillover between the Islamic gold-backed cryptocurrencies and equity markets of the Gulf Cooperation Council (GCC) countries. The study utilizes the QVAR method to determine the quantile connectedness among the asset classes and identify optimal portfolio weights across different economic conditions. The results show that the GCC economies have stronger connections with each other than with the cryptocurrencies. However, there is an increase in connections between the GCC economies and cryptocurrencies during extreme events. This suggests that extreme news can amplify the relationship between the Islamic cryptocurrencies and GCC markets. The findings suggest that asymmetric tails exist in the connectedness between the asset classes, meaning that the relationship between them is stronger during extreme market conditions. Accordingly, the dynamic connectedness analysis reveals varying patterns of connectedness across different periods, outlining pivotal portfolio implications. The study also suggests optimal weights for portfolio managers and investors and outlines the least expensive hedging strategy. The research proposes that investors in the GCC region could potentially mitigate the risk of their Islamic equity portfolios by incorporating the Islamic Shariah-compliant gold-backed cryptocurrencies in their portfolio. Further studies could explore the role of other factors such as liquidity, market volatility, and investor sentiment in the relationship between asset classes. Future research could examine the effects of other types of news, such as macroeconomic news, on the relationship between asset classes. Additional research could focus on the implications of incorporating Islamic gold-backed cryptocurrencies in a portfolio for investors beyond the GCC region.