Juan D. Saldarriaga-Loaiza, Johnatan M. RodrĂguezâSerna, JesĂşs M. LĂłpezâLezama, NicolĂĄs Muùóz-Galeano ¡ 5 authors
The integration of non-conventional renewable energy sources (NCRES) plays a critical role in achieving sustainable and decentralized power systems. However, accurately assessing the economic feasibility of NCRES projects requires methodologies that account for policy-driven incentives and financing mechanisms. To support the shift towards NCRES, evaluating their financial viability while considering public policies and funding options is important. This study presents an improved version of the Levelized Cost of Electricity (LCOE) that includes government incentives such as tax credits, accelerated depreciation, and green bonds. We apply a flexible investment model that helps to find the most cost-effective financing strategies for different renewable technologies. To do this, we use three optimization techniques to identify solutions that lower electricity generation costs: Teaching Learning, Harmony Search, and the Shuffled Frog Leaping Algorithm. The model is tested in a case study in Colombia covering battery storage, large- and small-scale solar power, and wind energy. Results show that combining smart financing with policy support can significantly lower electricity costs, especially for technologies with high upfront investments. We also explore how changes in interest rates affect the results. This framework can help policymakers and investors design more affordable and financially sound renewable energy projects.
This study examines whether cryptocurrency markets offer more resilient safe haven properties than gold for stock markets in the BRICS economies from 28th April 2013 to 27th September 2024. Unlike traditional studies that primarily focus on Bitcoin or top-market cap cryptocurrencies , we introduce a novel Crypto index that includes 9468 active and defunct cryptocurrencies, providing a comprehensive view of daily market fluctuations across all listed crypto assets. We also investigate the impact of the Russia-Ukraine military conflict on the safe haven status of these assets. Using a time-varying robust Granger causality framework, we analyse the dynamic relationships between potential safe haven assets and BRICS stocks. Additionally, we explore the network structure of gold, cryptocurrencies, and BRICS stocks across different quantiles . Our results show limited evidence of time-invariant causality, but strong evidence of time-varying causality, suggesting that neither gold nor cryptocurrencies act as safe havens for BRICS stocks over the entire sample period. We find increased market interconnectedness during extreme conditions, with gold and cryptocurrencies initially acting as net receivers of shocks, but gold shifting to a net transmitter during the conflict, indicating stronger safe haven properties for gold. Portfolios favour gold over crypto, and small-cap cryptocurrencies are cheaper but less efficient hedges compared to large-cap cryptos, with Bitcoin emerging as the optimal investment for returns. These findings offer valuable insights for investors and policymakers, particularly for optimizing portfolio management and supporting financial stability during market turbulence.
The rise of social media sites has far-reaching effects on numerous areas in our life, including money decision-making. In the context of cryptocurrency, a novel alternative asset class for investment the roles of social media have taken on more and more powerful roles in determining investors' behaviors, market structure, and even eco-consciousness. This paper aims to explore the intricate relationship between social media engagement and cryptocurrency investment trends, with a special emphasis on environmental considerations and market volatility. In this paper, we use wavelet comovement and coherence analysis to explore the multifaceted relationship between social media, environmental awareness, and cryptocurrency investment dynamics. Empirical results show a positive relationship between the Cryptocurrency Environmental Attention index-based social media which highlights the significant influence on investor attitudes. The interactions between the Index of Cryptocurrency Environmental Attention, cryptocurrency uncertainty, financial market, and gold demonstrate complex relationships shaped by market volatility, investor behavior, and social pressures. The quick investor responses to environmental concerns and regulatory changes highlight the short-term negative relationship, while the positive influence of social media underscores the significant impact of social awareness on investment decisions and corporate practices. This underscores the importance of integrating environmental criteria into financial strategies to meet evolving investor expectations and societal demands.
Pooja Kumari, Amit Shankar, Rsha Alghafes, Laura Broccardo ¡ 5 authors
ABSTRACT This study examined how Bitcoin, energy prices, and geopolitical risk interact by examining the first four moments (mean, variance, skewness, and kurtosis) of their return distributions by using wavelet analysis. The findings reveal that the coâmovement patterns of energy index, geopolitical risk index, and Bitcoin prices are time and frequency sensitive. During the turbulent period of 2020â2024, significant cross effect was observed at mediumâ and longâterm time scales in the relationship between the energy index and the geopolitical risk index. Similarly, in the case of Bitcoin and the geopolitical risk index, significant crossâeffects were detected at mediumâ and shortâterm time scales. From 2021 onwards, a strong coherence is observed at high and medium frequencies for all four moment pairs among Bitcoin, energy prices, and geopolitical risk. In terms of the Bitcoinâenergy relationship, significant coâmovement in mean and volatility is noted throughout most of the sample period and across different frequency bands. Moreover, crossâskewness and crossâkurtosis connections are more prominent at shortâ and mediumâterm horizons, especially during covid pandemic. These insights are valuable for investors and policymakers in risk management.
Chinaâs reliance on fossil fuels significantly hinders its transition to a low-carbon deconomy, requiring comprehensive carbon reduction strategies. In response, Green Finance Reform and Innovation Pilot Zones (GFRIPZ) policy was introduced in 2017 to promote green development through supply-side financial reforms and innovations. This study examines the impact of GFRIPZ on urban carbon unlocking (UCU) using a difference-in-differences (DID) model with panel data of 272 Chinese cities. Heterogeneous effects, mechanisms and the moderating effects of fiscal decentralization and digital finance are further explored. The results show that (1) GFRIPZ significantly promotes UCU; (2) The effect is stronger in Guangdong and Zhejiang pilot zones, as well as in eastern, larger, more open, non-resource-based and non-old industrial cities; (3) The policy enhances UCU through green technology innovation, government strategic leading, and social green habit; (4) Fiscal decentralization and digital finance positively moderate the impact of GFRIPZ on UCU independently and jointly. These results highlight the role of GFRIPZ in accelerating UCU and provide insights for sustainable urban development.
Iulia Cristina Iuga, Raluca Andreea NeriĹanu, Larisa-Loredana Dragolea
This study investigates the risk spillover between clean and dirty cryptocurrencies and their impact on green finance indexes (solar, wind, and nuclear energy) and regional economic indexes (Baltic Dry Index and CRB Index), with data processed using the diagonal BEKK model. The results identify several dirty cryptocurrencies such as: Ethereum Cash (ETC), Litecoin (LTC), and Bitcoin (BIT) as potential diversifiers and hedges with specific green energy and economic indexes. Our findings show that news from the cryptocurrency markets predominantly have a positive, significant effect on the covariance with green finance indices. The study also presents the covolatility spillover effect, showcasing the impact of a return shock in one market, such as the cryptocurrency market or the green finance market, on the co-volatility between markets, including regional economic indices like the Baltic Dry Index and CRB Index. The analysis reveals differential spillover patterns between clean and dirty cryptocurrencies and various green finance indices, highlighting the complexity of their interactions and the varying degrees of influence on regional economic indicators.
Climate change is the most pressing global problem, which warrants technological innovation in accurate monitoring and efficient market-based solutions. In this paper, we propose a framework to combine staking with artificial intelligence and blockchain to provide a transparent, secure, and efficient way of monitoring a variety of carbon credits related to carbon footprint. This uses machine learning algorithms to combine satellite imagery, IoT (wearable) data, and immutable blockchain ledgers to create tamper-proof environmental monitoring systems. It suggests brilliant contract architecture that can generate carbon credits through AI to validate the process, federated learning applications to track cross-border emission activity, and neural networks to validate carbon sequestration projects. Using these systems, we achieved orders of magnitude improvement in verification accuracy, transaction transparency, and market efficiency over traditional systems. By employing this integrated approach, some of the most pressing carbon market dilemmas, including narrowing carbon market data integrity issues, delays in verification, and deficits of trust among carbon market participants, can be resolved, and it is a strong foundation for climate action globally.
ABSTRACT This study contributes to the literature on sustainable development by investigating the mechanisms through which green finance fosters sustainability in emerging economies. Given the increasing importance of artificial intelligence (AI) and renewable energy in environmental transitions, we explore their roles as mediators in the relationship between green finance and sustainability. Using a dataset covering 2015â2022, we apply Baron and Kenny's (1986) mediation approach combined with advanced econometric techniques to assess green finance's direct and indirect effects on sustainable development. Our findings reveal that green finance directly enhances sustainable development while significantly promoting AI and renewable energy capacity. However, once these mediators are included, the direct effect of green finance on sustainability weakens, indicating a partial mediation effect. Moreover, the study identifies the additional mediating role of AI in linking green finance to renewable energy capacity and amplifying its overall impact. These results highlight the critical interplay between green finance, AI, and renewable energy in achieving environmental and economic sustainability. Policymakers in emerging economies should prioritize green finance initiatives, invest in AIâdriven clean energy solutions, and support decentralized renewable energy projects to accelerate sustainability transitions.
This study investigates the impact of financial, trade, and economic openness on energy consumption, focusing on renewable, nonrenewable, and fossil energy sources in Belt and Road Initiative (BRI) nations. The BRI framework, introduced by China in 2013, emphasizes economic collaboration and infrastructure development, including renewable energy projects. As participating nations navigate energy transitions to address climate change and achieve sustainable development, understanding the role of openness is crucial. Motivated by the dual challenges of energy security and environmental sustainability, this study explores how openness influences energy consumption patterns and identifies pathways for policy intervention. Using data from 2004 to 2020, the study employs advanced econometric techniques, including Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) and Nonlinear ARDL models, to examine short- and long-term relationships. Control variables such as urbanization, financial development, and education are integrated to provide a comprehensive understanding of the dynamics. The analysis reveals that financial openness positively impacts energy consumption across all types, with a significant contribution to renewable energy in the long term. Trade openness facilitates technology transfer and renewable energy adoption, while economic openness through foreign direct investment (FDI) supports clean energy projects but also sustains fossil fuel reliance in some contexts. Urbanization drives nonrenewable energy demand but offers opportunities for renewable integration contingent on governance quality. Education enhances renewable energy consumption by fostering a skilled workforce and knowledge development. The findings suggest key policy implications. First, financial openness should be directed toward green finance and renewable energy investments. Second, trade policies must focus on reducing barriers to renewable technology imports and fostering global collaborations. Third, economic openness should prioritize sustainable FDI in clean energy sectors. Fourth, urban planning must incorporate decentralized energy systems and green technologies. Finally, investing in education and institutional reforms is essential to drive innovation and ensure effective governance. This study contributes to the discourse on energy transitions in BRI nations, emphasizing the critical role of openness and offering actionable policies to balance economic growth with sustainability.
ABSTRACT Assuring environmental sustainability is essential for the continuity of the ecosystem. Every sector of the economy has some degree of impact on environmental sustainability. The United Nations (UN)â Sustainable Development Goals (SDGs) have placed these objectives within a broader global framework, offering a global plan aimed at ensuring environmental sustainability. This study assesses the role of cryptocurrency mining on environmental sustainability, incorporating monthly data for the period from 2015 to 2023. In this context, the impact of the electrical energy consumed in Bitcoin mining, which has the largest transaction volume among cryptocurrencies, and the climate policy uncertainty on Bitcoin greenhouse gas (GHG) emissions are examined by applying dynamic stimulated autoregressive distributed lag (DARDL) and kernelâbased regularized least squares (KRLS) methods. The results of the empirical analysis indicate that the increase in Bitcoin electricity consumption and climate policy uncertainty have a significant negative impact on Bitcoin GHG emissions. Put another way, cryptocurrency mined using fossil fuels and climate policy uncertainty poses a considerable threat to environmental sustainability. These findings are crucial for policy makers and all stakeholders who want to achieve environmental sustainability goals to develop proactive proposals. It is also highlighted that Bitcoin mining should bring environmental regulations that can mitigate environmental degradation.
Noman Raza Sial, Muhammad Abdul Qyyum, Apoorv Lal, Fengqi You
Bitcoin, the pioneering decentralized currency, has transformed global finance. However, its expanding network drives greenhouse gas emissions, water use, and land consumption, posing sustainability challenges. This study introduces a novel methodological framework to assess these impacts across participating nations, integrating the ReCiPE 2016 midpoint (H) method for life cycle impact assessment of offsite environmental footprints and mathematical modeling for onsite environmental footprints, using open LCA and the Ecoinvent v3.10 database in a cradle-to-gate approach. The findings reveal that the United States, China, and Kazakhstan, responsible for 65% of global Bitcoin mining, are the largest contributors to its environmental impact. The United States records a water footprint of 419 million cubic meters under high computational load, enough to meet the annual water needs of Antigua and Barbuda, Barbados, and Bhutan. China leads with a 900 km 2 land footprint, while Kazakhstan emits over 25 MtCO 2 e greenhouse gas emissions, driven by coal reliance. These findings offer policymakers region-specific insights to balance Bitcoinâs economic benefits with its environmental costs, emphasizing the need for technological advancements and sustainable energy shifts. The study also calls for future research into pinpointing the Bitcoin minersâ locations and the true computational mix of the global Bitcoin network.
This bibliometric study explores the evolution of green finance research from 2000 to 2024, employing a comprehensive dataset derived from Scopus. It analyzes the development of themes, the geographic distribution of research, and the dynamics of academic collaboration within the field. Our findings indicate a significant growth in literature, with a pronounced focus on sustainable investments, green bonds, and the integration of environmental concerns into banking practices. The study highlights the role of technological innovation and decentralized finance in advancing the field, reflecting a shift towards more efficient and transparent financial processes. Geographical analysis reveals a strong contribution from countries like China, India, and the United States, with extensive international collaborations across continents. The research landscape is characterized by a diverse array of contributions that address both the economic and environmental aspects of green finance. This study provides valuable insights into the intellectual structure of green finance and suggests areas for future research, including the need for more interdisciplinary approaches and empirical studies to assess the effectiveness of green finance mechanisms.
This study investigates the causal relationships between Bitcoin and the US Dollar (USD), Gold, and BIST100 Index as alternative investment instruments. Employing Hongâs variance causality test, the research explores spillover effects in mean and volatility. Using daily data from September 17, 2014, to October 13, 2023, the study reveals a one-way average causality from Bitcoin to BIST100 and the USD. Variance test results show a two-way volatility spillover between Bitcoin and USD, Gold, and BIST100. Hacker-Hatemi-J symmetric causality test detects a one-way causality from Bitcoin to the USD, while Hatemi-J asymmetric test reveals a unidirectional causality from positive Bitcoin shocks to negative shocks of BIST100 and Gold, and bidirectional causality with USD's negative shocks. Additionally, a bidirectional causality exists from Bitcoin's negative shocks to Gold's positive shocks and a unidirectional causality to USD's negative shocks. Recognizing Bitcoin as a financial asset sheds light on its interaction with traditional markets, aiding investors in refining strategies. In summary, this study enhances comprehension of cryptocurrency's role by emphasizing the causal link between Bitcoin and the USD.
Ăzlem SayÄąlÄąr, Ahmet Ăzkul, Mehmet BalcÄąlar, Ronald Kuntze
Using blockchain adoption (BCA) data for 81 leading public companies in 2021, this study examines the impact of blockchain adoption on organizationsâ environmental, sustainability, and governance performance. Employing the 2022 ESG scores from LSEG (Refinitiv) Database, which assess corporate sustainability performance across environmental, social, and governance dimensions, we regress ESG scores against blockchain adoption levels, company size, and various financial performance metrics. The results from the regression analysis reveal that blockchain adoption is significantly and positively associated with two sub-dimensions of environmental sustainability performance: resource usage and emissions. Additionally, firms exhibiting higher profitability and greater financial leverage appear to more effectively control blockchain adoption to enhance their corporate sustainability performance. These findings support the notion that blockchain adoption offers eco-efficient solutions that contribute to improved corporate sustainability performance, particularly through improved resource management and emissions control, while also offering actionable recommendations for policymakers and industry leaders.
⢠Blockchain can be used to create token-based inducement systems. ⢠The integration of blockchain supports distributed energy systems and P2P in green energy trading. ⢠Blockchain technology allows transparent and immutable recording of green energy transactions. ⢠Blockchain facilitates automated and efficient trading of renewable energy. ⢠Key trends and influential papers in the field are identified using bibliometric analysis. Blockchain is evolving as a crucial technology in protecting the future outlook of energy systems and global economic competition. As a result of the huge rise in industrial pollution, it has gained extensive consideration from economic establishments, green energy supply organizations, tech designers, governments, and researchers. Stakeholders from various fields identify the potential of blockchain integration with green energy as a tool to transform different activities in the sector, such as reducing the grid's major carbon emissions, freeing cyber theft and generating novelty. Moreover, blockchain system is tamper-proof, transparent, and has the prospect of addressing novel business solutions, mostly when integrated with smart contracts. In this study, 510 documents from 2017 to 2024 were selected and visualized using CiteSpace software and bibliometric approaches to analyze the research field's growth base, hotspot areas, country and their policy implementations, collaborative groups, and evolutionary trends of blockchain base within energy networks. It investigates the existing literature to acknowledge the progress made in the field. The key findings show that basic research on blockchain technology in the energy sector is fast growing with time, showing that integrating blockchain and green energy is an emerging research field. Out of 742 countries and regions, China leads with 89 publications, recording 24.7%, followed by India with 78 publications, accounting for 21.7%, and the United States with 76 publications, accounting for 21.1%. Among them, China's collaborations rely mainly on renewable energy management. Moreover, the practical application cases corresponding to research hotspots are mostly located in developed countries, especially in the United States, the European Union, and Australia. The research gaps in blockchain-based green energy applications are noticed in green certificate trading, micro-grid energy market, technology and policy, energy management, as well as potential trends in energy internet, energy systems, and green power trading. The findings of this paper will assist researchers in gaining a vast knowledge of the present research in the area of blockchain and green energy and identify future research trends in the field. Hence, this will boost the knowledge of energy expansion among energy trading experts, seize possible opportunities, and offer beneficial insights for the government to introduce blockchain advancement and green energy trading policies.
Lingli Qing, Ibrahim Alnafrah, Abd Alwahed Dagestani
The energy-intensive nature of cryptocurrency mining, largely reliant on fossil fuels in its early development, has raised growing environmental concern. Consequently, the Index of Cryptocurrency Environmental Attention (ICEA) has emerged, gauging public attention towards this issue. This study investigates the complex interplay between ICEA, cryptocurrency price and policy volatilities, green energy investments, and dirty energy prices. Utilizing a dataset spanning from January 2015 to June 2023, we employ a multifaceted approach encompassing cross-quantilogram, time-varying parameter vector autoregression (TVP-VAR), and wavelet coherence techniques to uncover the dynamic interconnectedness of these three markets. Our findings challenge a simplistic narrative that anticipates a direct link between ICEA and immediate reductions in electricity consumption within the cryptocurrency mining sector. Instead, we discern a nuanced picture wherein ICEA drives significant structural transformations, influencing investments in clean energy markets. Our analysis suggests that ICEA stimulates green energy investments, encouraging miners to explore alternative energy sources with lower environmental impacts . This transition paves the way for more sustainable investments , with green energy sources like renewables playing an increasingly prominent role in powering the cryptocurrency industry .
This study investigates the return propagation dynamics between cryptocurrencies and Emerging market sectoral indices (EMSI), focusing on portfolio impact from Bitcoin, Ethereum, and two gold-backed cryptocurrencies (PAXG and X8X). Using data from 2019 to 2024, we apply a novel DCC-GARCH-based R 2 decomposed connectedness approach to analyse return connectedness among these high-risk assets. We also utilize innovative concepts such as minimum dynamic pairwise connectedness and minimum R 2 decomposed connectedness portfolios in our multivariate hedging portfolios. Our findings reveal that total connectedness is time-variant and influenced by economic events. Bitcoin and Ethereum are identified as net transmitters of shocks, while other assets, particularly gold-backed cryptocurrencies, serve as net shock receivers with minimal impact. Moreover, few EMSIs (financials, industrials, and materials sectors) show significant connectedness in the system. Although our suggested portfolio analysis offers improved returns, none consistently outperform the market. This research offers valuable insights for investors and policymakers regarding the interconnectedness and risk management of cryptocurrencies and EMSI.