Carbon credits should reduce the environmental pollution and carbon emission of the Earth in the future. The market for carbon credits will become a critical issue from 2021, and carbon credits will be applied to systems where individuals can trade. In order for these carbon credits to be traded between individuals, however, a corresponding exchange of carbon credits is needed. Policies, strategies, and technologies are also necessary to measure the trading of carbon credits. This paper aims at making transactions more reliable by applying blockchain technology to measure carbon emission rights. It uses blockchain to verify carbon emissions rights among the UN-SDGs’ (United Nations Sustainable Development Goals’) 17 tasks. In addition, it introduces the necessary dApp. In fact, we can protect against carbon emissions anomalies by using big data and artificial intelligence in mobile cloud environments. Thus, this paper proposes a blockchain-based carbon emission rights verification system to learn proven data further by using the governance system analysis and blockchain mainnet engine to solve these problems.
Anwar Hasan Abdullah Othman, Syed Musa Alhabshi, Salina Kassim, Adam Abdullah · 5 authors
Purpose This study uses the autoregressive distributed lag model (ARDL) econometric approach to investigate empirically the effects of cryptocurrencies, the gold standard and traditional fiat money on global income inequality measured based on the Gini coefficient, and various ratios of income inequality distribution such as top 1 per cent, top 10 per cent, top 40 per cent and top 50 per cent. Design/methodology/approach The study uses the ARDL econometric approach. Findings The findings indicated that cryptocurrency and gold standard monetary systems contributed significantly to reducing global inequality of income and wealth distribution. Conversely, the traditional fiat money system contributes positively to global income and wealth inequality while also contributing significantly to their fluctuation. Practical implications This suggests that the fiat monetary system results in the coercive redistribution of income and wealth if governments pursue a social welfare policy. They must resolve this conflict between the current fiat monetary system and social policy by opting for an alternative monetary system such as cryptocurrency or gold standard. These alternative monetary systems offer the promise of resolving the income and wealth inequality associated with the traditional monetary system which are accompanied with the channels of inflation, lack of financial inclusion and debt creation, and to offer a more sustainable financial system. Originality/value The study recommends that monetary policy must be revisited to account for its direct effect on income and wealth redistribution to achieve social welfare goals.
Bitcoin is the digital currency of the digital economy. This article is an attempt to reveal the effects of policy uncertainty on Bitcoin returns with economic policy uncertainty (EPU) in the US, the UK, Japan , China, and Hong Kong . Furthermore, we also present the results of monetary policy uncertainty (MPU) on the Bitcoin market. The robust estimations from the quantile regression and Markov regime-switching model show that Bitcoin returns are affected by EPU. One of the essential findings is that Bitcoin returns are more responsive to EPU in the US, China, and Japan. In the US and Japan, uncertainty has a negative effect on the Bitcoin market whereas in China it has a positive effect. Global MPU uncertainty is also significant in explaining Bitcoin exchange rates. Moreover, the Bitcoin market is negatively affected by uncertainty in Federal Open Market Committee (FOMC), the gross domestic product, and other macroeconomic data. Uncertainty in the equity market and Bitcoin returns are negatively associated.
Muhammad Abubakr Naeem, Mudassar Hasan, Muhammad Arif, Syed Jawad Hussain Shahzad
We compare the hedging, safe-haven, and diversification potential of gold and Bitcoin for different investment styles and industry portfolios in the United States. We find that gold is at least a weak hedge for the style and industry portfolios except for utilities, energy, and telecom. The hedging potential of gold is comparatively higher for large-cap portfolios, whereas Bitcoin offers minimal hedging effectiveness. However, Bitcoin shows hedging potential for the noncyclical industries. Although investors need a higher amount of investment to hedge the downside risk using gold, it still is a superior hedging instrument compared with Bitcoin. Finally, the analysis using the conditional diversification approach shows that gold is a superior and stable diversifier for style and industry portfolios. Overall, our findings provide evidence of superior safe-haven and hedging potential of gold over Bitcoin.
Mohammad Raihanul Hasan, Shiming Deng, Mollah Aminul Islam, Muhammed Zakir Hossain
Purpose The purpose of this study is to evaluate the effect of blockchain technology on firms’ operational efficiency in the context of China. Design/methodology/approach The authors use panel data for blockchain-based companies listed on stock exchanges in China (Shanghai, Shenzhen and Hong Kong) between 2014 and 2018. The operational efficiency of firms that deploy blockchain technology is evaluated using ordinary least squares and system generalized method of moments estimation. Findings Results suggest that companies’ current year performance exceeds the previous year performance because of blockchain deployment in firms’ operations. Firms with higher financial leverage and return on assets reap more benefits from blockchain. Larger and older firms benefit less from blockchain implementation. Stochastic frontier estimation suggests that, on average, firms attain a 57.76 per cent technical efficiency level, or, put differently, they operate 42.24 per cent below their maximum level of potential output. Originality/value Blockchain can benefit firms in terms of consensus, security and trust, spurring the evolution of a new form of organizational dynamics. This study explores the theory of transactional cost analysis under blockchain technology. In addition, this study hypothesizes and empirically demonstrates the significant impacts of blockchain technology on corporations’ operational efficiency, using audited, externally reported financial data. Industry professionals can reap benefits from this research by noticing the magnitude of changes in firms’ financial parameters attributable to blockchain adoption.
Jéssica Paule-Vianez, Camilo Prado Román, Raúl Gómez-Martínez
Purpose The goal of this work is to determine whether Bitcoin behaves as a safe-haven asset. In order to do so, the influence of Economic Policy Uncertainty (EPU) on Bitcoin returns and volatility was studied. Design/methodology/approach It is evaluated whether, when compared with the evolution of EPU, Bitcoin's returns and volatility show behaviours typical of safe havens or rather, those of conventional speculative assets. When faced with an increase in EPU, safe havens – such as gold – can be expected to increase their returns and volatility, while conventional speculative assets will increase their volatility and reduce their returns. This study uses simple linear regression and quantile regression models on a daily data sample from 19 July 2010 to 11 April 2019, to analyse the influence of EPU on the returns and volatility of Bitcoin and gold. Findings Bitcoin's returns and volatility increase during more uncertain times, just like gold, showing that Bitcoin acts not only as a means of exchange but also shows characteristics of investment assets, specifically of safe havens. These findings provide useful information to investors by allowing Bitcoin to be considered as a tool to protect savings in times of economic uncertainty and to diversify portfolios. Originality/value This study complements and expands current research by aiming to answer the question of whether Bitcoin is a simple speculative asset or a safe haven. The most significant contribution is to show that Bitcoin is not a mere speculative asset but behaves like a safe haven.
Although business models presumably have a prominent role in socio-technical change remarkably little research has been conducted in this domain, more particularly in the context of developing economies. In this paper, we tap into this knowledge gap and study business model components and the challenges they face. We argue that the market value of renewable energy technologies will increase when new business models are implemented to overcome financial and institutional challenges. We complement concepts of the business model literature with the insights from the sustainable transitions literature. This paper addresses two research questions: What are the challenges of business and financial models in the transition towards decentralized solar energy driven systems? And what are the promising opportunities for new business models in a developing country context? To answer these research questions, we use a case study research design focusing on niche market development of solar thermal and solar photovoltaic (PV) technology in Lebanon. Data collection involved analysis of relevant text documents and expert interviews with 30 informants across different groups of stakeholders. Data analysis involved qualitative interpretation of collected data against concepts from the business model and Strategic Niche Management literatures. The results show that business model challenges initially were highly dependent on donor aid, which contributed to the launch and network creation of niche markets. Later, a shift to micro-finance and business startup models was observed, which showed promising development. Knowledge transfer and community empowerment were found to play an important role in developing new business models that involve consumers more closely. As this development is expected to take place more often, we expect that new opportunity pathways will develop in developing economies like Lebanon.
This paper proposes a token based economy for carbon trading using blockchain as a means of ensuring decentralization and transparency at a global level. It explores digital tracking of carbon emission permits. It also proposes a safeguard against the hoarding of carbon credits.
Transparency is one of the most useful tools to support sustainability in the energy value chain. By providing information about the sustainability of the activities of actors, transparency creates incentives to improve sustainability. This paper explains how blockchain technology might be used to build a global transparency system for sustainability information in the energy value chain, using market based instruments (MBIs) as its testbed. While the energy value chain is global, management of sustainability is not. Instead, sustainability is managed through a complex system of independent, sometimes overlapping, structures, with both mandatory and voluntary elements. MBIs such as emissions trading schemes, green certificates and labelling programs facilitate sustainability through market incentives. However, the transparency of MBIs, and so the information which can be derived from them, is inconsistent, fragmented across national schemes, and not readily accessible. The problems that arise from that are compounded by the regulations that govern MBI programs, which set out the information to be collected and restrict how widely it can be shared. Blockchain technology offers a tool which could be used to collect and share sustainability information better. This would increase the effectiveness of sustainability incentives through market responses such as consumer choice and investor pressure, and make MBI schemes operate more efficiently. However, the implementation of blockchain for MBIs is not to be done against a blank canvas – it must be consistent with existing governance requirements. If the existing regulatory regimes governing MBIs are not respected, developments based on blockchain are unlikely to be adopted.
This paper suggests a model for optimization of societal carbon footprints one person at a time through the decentralization of electricity use and accounting. Our model describes steps involved with developing a decentralized accounting system considering electricity as a "credit product". While describing the basic characteristics of both schemes, we also emphasize capabilities of the proposed model for reducing carbon footprints from other societal choices, for example, purchasing water (energy-water nexus), managing waste, or designing sustainable transportation systems. A simple yet complex model involved with familiar societal financial systems' rules and routines is proposed for achieving a resilient, sustainable, and prosperous future. The proposed model calls for creating a dynamic society (as a system) that can be efficiently adopted to take on challenges threatening the function, survival, and future developments of the societies.
Blockchain technology is a technology that can effectively support supply chain transparency. An important initial managerial activity is for organisations in supply chains to evaluate and select the most suitable blockchain technology. However, uncertainty and emphasis on sustainable transparency has made this appraisal more complex. This paper: (1) introduces blockchain technology performance measures incorporating various sustainable supply chain transparency and technical attributes; and (2) introduces a new hybrid group decision method, integrated hesitant fuzzy set and regret theory, for blockchain technology evaluation and selection. This method emphasises decision maker psychological characteristics and variation in decision maker opinions. An illustrative application and sensitivity analysis is introduced to aid supply chain managers and researchers understand the blockchain technology selection decision. Methodological and managerial implications associated with the decision tool and application are introduced. This research sets the foundation for significant future research in blockchain technologies evaluation in a supply chain environment.
In recent years, the rapid development of blockchain technologies have attracted worldwide attention. Its application has been extended to many fields, such as digital finance, supply chain management, and digital asset transactions. For some enterprises and users, how to choose the most effective platform from many blockchains to control costs and share data is an important issue. To comprehensively evaluate the blockchain technologies, we first construct three-level evaluation indicators in terms of technical, market, and popularity indicators. Then, we propose an improved global DEA-Malmquist index without explicit inputs to assess the dynamic performance of blockchain technologies. Finally, we carry out an empirical analysis to evaluate 31 public blockchains' performance from May 2018 to April 2020. The results indicate that the overall performance of blockchain technologies is basically on the rise. Some blockchain technologies that have not yet received widespread attention have shown good dynamic performance.
Building on an economic model of rational Bitcoin mining, we measured the carbon footprint of Bitcoin mining power consumption using feed-forward neural networks. We found associated carbon footprints of 2.77, 16.08 and 14.99 MtCO2e for 2017, 2018 and 2019 based on a novel bottom-up approach, which (i) conform with recent estimates, (ii) lie within the economic model bounds while (iii) delivering much narrower prediction intervals and yet (iv) raise alarming concerns, given recent evidence (e.g., from climate–weather integrated models). We demonstrate how machine learning methods can contribute to not-for-profit pressing societal issues, such as global warming, where data complexity and availability can be overcome.
The paper presents a novel analysis specifically investigating as to whether stocks associated with leading blockchain patent-developments influence the price volatility of Bitcoin across multiple time frequencies. It is important to further develop our understanding of the inter-dynamics between this relatively youthful financial product and pricing sensitivities associated with corporate technological advancement. Several interesting results are presented. First, Bitcoin is identified as a volatility receiver instead of a transmitter across all of the time frequencies considered during periods of patent development. Secondly, Microsoft, Mastercard, Intel and Visa contribute the largest volatility spillovers to the Bitcoin market due to patent development. Finally, for most of the companies considered, the calculated spillover effects towards Bitcoin markets are found to increase from the short-term to the long-term. These results suggest the existence of an avenue through which large corporations can influence cryptocurrency prices through their announcements of future technological intentions. The inherent risks incorporated with blockchain and cryptocurrency patent-development should be studied in detail, with particular warnings presented to those companies with no evidence of prior exposure and market knowledge.
Κωνσταντίνος Γκίλλας, Elie Bouri, Rangan Gupta, David Roubaud
We extend existing studies by considering the higher-order moments relationships among crude oil, gold, and Bitcoin markets. Using high-frequency data from December 2, 2014 to June 10, 2018, we analyze spillovers in jumps and realized second, third, and fourth moments among crude oil, gold, and Bitcoin markets via Granger causality and generalized impulse response analyses. Results suggest evidence of predictability and emphasize, among others, the need of jointly modeling linkages across those three markets with higher-order moments; otherwise, inaccurate risk assessment and investment inferences may arise. The responses of realized volatility shocks are generally positive. Further analyses indicate evidence of a weaker relationship between gold and crude oil and Bitcoin and crude oil compared to the relationship between Bitcoin and gold. Practical implications are also discussed.