It is possible to define uncertainty as the variability of conditions, the ambiguity and obscurity of statements and events. Uncertainty, for whatever reason, affects the economy in different ways. Uncertainty causes people to be more concerned about their future income. Various estimation and methods have been developed in recent years to calculate the uncertainty, which is equivalent to the concept of uncertainty. These indices, in which economic and political uncertainties are calculated, appear as a form of calculation that also includes political discourses along with financial risk. The aim of this study is to examine the causality relationship between the Global economic political uncertainty index and Bitcoin electricity consumption. For this purpose, the Toda-Yamamoto causality test was applied using data from the period 2011:M7-2022:M1. According to the obtained Toda-Yamamoto causality test findings, Granger causality relationship has been determined both from the global economic-political uncertainty index to Bitcoin electricity consumption and from Bitcoin electricity consumption to the global economic-political uncertainty index.
Purpose The purpose of the present study is to contribute to the existing literature by examining the nexus and the connectedness between classes S&P Green Bond Index, S&P GSCI Crude Oil Index, S&P GSCI Gold, MSCI Emerging Markets Index, MSCI World Index and Bitcoin, during the pre-and post-Covid period beginning from August 2011 to July 2021 (10 years). Design/methodology/approach The study employs time-varying parameter vector autoregression and Quantile regression methods to understand the impact of events on traditional and upcoming asset classes. To further understand the connectedness of assets under consideration, the study used Geo-Political Risk Index (GPR) and Global Economic Policy and Uncertainty index (GPEU). Findings Findings show that these markets are strongly linked, which will only expand in the post-pandemic future. Before the pandemic, the MSCI World and Emerging Markets indices contributed the most shocks to the remaining market variables. Green bond index shows a greater correlation and shock transmission with gold. Bitcoin can no longer be used as a good hedging instrument, validating the fact that the 21st-century technology assets. The results further opine that under extreme economic consequences with high GPR and GPEU, even gold cannot be considered a safe investment asset. Originality/value Financial markets and the players who administer and communicate their investment logics are heavily reliant on conventional asset classes such as oil, gas, coal, nuclear and allied groupings, but these emerging asset classes are attempting to diversify.
The dynamic nature of competitive electricity markets means that participants often resort to some form of derivative financial instrument. One such instrument is a contract-for-difference (CFD), usually available to renewable generators in certain electricity markets to enable them to hedge their price risk. Embracing CFD presents new risks such as counterparty credit, margining, third-party, legal, and process risks. Derivative instruments existing on blockchains have recently demonstrated potential as suitable hedging tools for minimizing the risks of renewable generators. This article applies this concept for the first time to hedge the price risk of renewable generators by implementing a novel decentralized finance instrument, an Ethereum blockchain marketplace governed by a smart contract to mediate between stakeholders mutually enrolled in bilateral CFD arrangements. The employed structure mitigates the underlying risks of traditional arrangements, underpinned by a suite of autonomous mechanisms.
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.
João Tiago Aparício, Mário Rom�ão, Carlos J. Costa
The current study's goal is to explain the price of bitcoins. We examined the effect of Web search statistics, energy prices, and alternative investment (or cost of opportunity) on bitcoin prices in particular. The second goal is to find the algorithm with the best predictive power. Data were obtained from public and open data. We use a variety of machine learning algorithms to accomplish this. Statistical results were coherent according to the expectation.
Yudi Fernando, Ming‐Lang Tseng, Ika Sari Wahyuni-TD, Robert Sroufe · 5 authors
This study aims to investigate organisational factors of blockchain adoption for carbon trading and energy efficiency. This study develops a new theoretical model based on technology, organisation and environment (TOE), and Diffusion of Innovation (DOI) theories to fill the literature gaps. The underpinning theories are utilised to capture the motivation of manufacturing industry firms to adopt blockchain technology while supporting carbon trading activities. Using survey data, we examine the perception of early adopters of blockchain technology and their relationships to energy efficiency. The results show that attributes such as the contract system, firm size, and compatibility significantly affect energy efficiency. Paradoxically, top management support, competitive pressure, regulatory support, relative advantage, and complexity were not, as prior literature suggests, crucial drivers. Adopting blockchain technology can help a firm improve business transparency, manage energy consumption, and provide a strong business case for firms in this study.
The cumulative amount of greenhouse gases that are shaped by our actions is a carbon footmark. In the US, the total carbon footmark of a humanoid is 16 tonnes, one of the largest amounts in the world. The average is closer to 4 tonnes worldwide. The average universal carbon footmark per year requirements is to drop below 3 tonnes by 2050 to have the utmost chance of stopping a 2°C point rise in worldwide temperature. Rahul et al. already predicted that the carbon footprint reduced by 17% with the use of IoT-enabled services. In this research study a novel approach to reduce carbon footprint using IoT with reinforcement AI learning is presented, which further reduced carbon footprint by 5% when using and nearly 7% when it is done using Q-Learning. The detailed findings are included to demonstrate the result.
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.
We present an approach to evaluating the carbon-emitting energy provenance of Bitcoin transactions and transaction outputs. Our approach incorporates published global energy production data and existing state-of-the-art estimates of Bitcoin energy consumption into a scoring algorithm for individual mined blocks. We then present two proposals for deriving scores for transactions based on the coinbase origins of the Bitcoin currency values of the transactions' inputs. The first proposal is comparatively simple, and weights coinbase origin contributions to a transaction based on recency in transaction hops from its origin block. The second proposal adjusts the weights of coinbase contributions at each intermediary transaction based on the input and output values of those transactions. Using these methods we are able to associate individual transactions and unspent transaction outputs with specific quantities of atmospheric carbon. Finally, we offer an outline of an incentivization strategy in the form of a blockchain-based carbon-offsetting oracle that would track the creation and exchange of offsets based on the metrics proposed.
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.
Oscar Golding, Guangsheng Yu, Qinghua Lu, Xiwei Xu
Recent blockchain-based carbon markets focus on permit-based trading requiring manual application processes to grant the right for carbon emission. A decentralized blockchain-based carbon market without relying on off-chain permits is yet to be explored. In this paper, we present a new design of blockchain-based carbon trading through the introduction of Carboncoin – a blockchain asset which tokenizes the right of energy producers to emit carbon. Instead of relying on off-chain and centralized permits, producers are allowed to freely exchange Carboncoin with each other for fiat currency. By using an on-chain asset, carbon production can be automatically expensed whenever a producer records new energy production which is certified on the blockchain. Moreover, the proposed design enables generic ESG (Environmental, Social and Governance) data to be used to provide a more holistic reputation score inclusive of ESG initiatives undertaken by market participants. We conclude that entirely blockchain-based carbon markets can be made more comprehensive using ESG data and on-chain assets, but at the cost of reduced performance.
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.