Climate change impact on the Blue-Green economy has been of great concern. Further cryptocurrency mining is impacting the economy in an adverse fashion. Moreover, impact of gold mining, extraction on Blue-Green economy and even relationship with cryptocurrency is another interesting facet. Therefore, we delved into the interconnectedness among five indices, two of which focus on the green economy (ICLN-iShares and CNRG-SandP), whereas three are on the blue economy (BJLE- BNP Paribas ESG Blue Economy ETF and PIO-Invesco Global Water ETF) and OCEN (IQ Clean Oceans ETF) alongside the traditional assets Bitcoin and gold indices. We considered between October 26, 2021, to January 5, 2024 for the study. This study highlighted some cardinal findings. First, BJLE can be used as a hedge against OCEN and PIO (all are in Blue economy). Second, excessive water usage in Bitcoin mining is detrimental to Blue-Green economy. Third, positive policy shock force spillover effect to cool down. Fourth, spillover typically increases as both economic uncertainty (US Banks collapse in 2023) and geopolitical risk (Russia-Ukraine conflict) increase. Fifth, there has been an increased responsiveness of these markets to immediate events (near-term bias). Therefore, this study would assist the policymakers and investors, especially in the Blue-Green domain.
ABSTRACT Investigating gold's safeâhaven status is crucial to stabilising energy and cryptocurrency markets. To capture the dynamic relationships between energyârelated uncertainty (ERU), gold prices (GP), and cryptocurrency policy uncertainty (CPOU), this study employs the TVPâSVâVAR methodology. Through quantitative analysis, we find ERU has favourable and unfavourable effects on GP. The favourable impact underscores gold's safeâhaven role against energy market uncertainty. At the same time, the negative impact contradicts this view and theoretical models, likely due to the U.S. dollar's value and gold's hedging performance against other uncertainties. CPOU, however, positively impacts GP, supporting gold's safeâhaven characteristics against uncertainty in the cryptocurrency market and aligning with theoretical predictions. Gold's safeâhaven status in the cryptocurrency market is comparably more consistent but slightly less significant. Additionally, this study validates the findings by substituting CPOU with cryptocurrency price uncertainty (CPRU), confirming their robustness. Given the high volatility in energy and cryptocurrency markets, this article offers valuable insights for authorities to maximise profits and ensure stable growth.
Integrating blockchain technology into sustainable finance represents a pivotal shift towards more transparent, efficient, and inclusive financial practices. This chapter presents a systematic review of the current literature on the role of blockchain in fostering sustainable financial systems. By meticulously analysing peer-reviewed articles, industry reports, and case studies, we identify the key ways blockchain technology is being applied to enhance sustainability in financial operations. The review reveals emerging trends, such as using smart contracts for green bonds, blockchain-enabled supply chain transparency for sustainable investments, and deploying decentralized finance (DeFi) solutions to support sustainable development goals (SDGs). Furthermore, we discuss the challenges facing blockchain integration into sustainable finance, including regulatory hurdles, technological limitations, and scalability and interoperability issues. This chapter concludes by outlining a research agenda to address these challenges, foster innovation, and guide future scholarly and practical efforts towards the realization of sustainable finance through blockchain technology. This work is a comprehensive resource for academics, policymakers, and practitioners interested in understanding and advancing the intersection of blockchain technology and sustainable finance.
Purpose This study aims to investigate the potential impact of total value locked (TVL) fluctuation in decentralized finance (DeFi) on banks deposits for a sample of 21 countries, including the Eurozone members and the USA, over the period from July 2018 to October 2023. Design/methodology/approach Panel vector autoregression model has been used to analyze the existence of a relationship between TVL and banks deposits. In the second stage, the impulse response function has been exercised to find out the response of banks deposits among each nation. Findings Empirical findings exhibit that while increases in TVL have a significant negative long-run association with banks deposits in a global perspective, the effect is weak, suggesting modest disruption to traditional banking services to date. However, the impact varies between short and long-run effects at the country level. Six nations exhibit substantial negative long-run effects, whereas eight countries experience only temporary decreases in deposits following TVL upticks that rebound over time, reflecting the lack of trust in DeFi services and the engagement in speculative instead of long-term activities. Research limitations/implications This study provides general insights into DeFiâs impact on banking performance and deposit stability. However, it likely has limitations in scope and time frame. Future research could explore long-term effects, specific DeFi protocols and cross-country comparisons. Practical implications This studyâs findings provide key insights for policymakers, central banks and bank managers on the impact of DeFi growth on banking performance and deposit stability. The results highlight the need for adaptive regulatory frameworks and investment strategies to address the emerging DeFi ecosystem. At the country level, the observed variations suggest the importance of tailored policy approaches. These insights are crucial for developing effective regulations and strategies in the evolving financial landscape. Social implications DeFi growth may alter financial access and inclusion, raising concerns about consumer protection and literacy. It could shift power dynamics in finance, potentially reducing traditional intermediariesâ influence while creating new forms of inequality. Balancing innovation with social responsibility is crucial for equitable distribution of benefits. Originality/value Although numerous studies have been conducted on the effects of cryptocurrencies on bank deposits and stock performance across various regions, they have largely overlooked the DeFi and its role in influencing deposits as a new competitor to traditional banks services. This study aims to address this gap by examining the influence of TVL developments on banks deposits, and to what extent it can be served as an alternative to banking services.
ABSTRACT We examine the potential of blockchain technology for carbon financing by organizations and within supply chains. Blockchain can provide transparent, trustworthy, secure, and efficient carbonârelated transactions. Signaling and attribution theories inform the study that uses choiceâbased conjoint (CBC) experimentation to evaluate offsetting and insetting carbon finance investment scenarios. Factors on project attributesâincluding price, the scope of carbon finance project, blockchain adoption level, and stakeholder involvementârelationships to managerial investment decisions are investigated. We also investigate an important question on whether managerial ecological value propensity affects investment decisions and blockchain adoption preferences. The findings show that contrary to original suppositions, price was not as influential as presumed. Of greater concern to managerial decisions is the nature of carbon initiativesâthe decision on whether to pursue carbon offsetting and/or insetting investments. Managerial environmental values significantly influenced decisions on carbon finance investmentsâwith a preference for carbon reduction projects within their own supply chains. There is also an inclination for greater blockchain technology usage in carbon investment projects. Managers with greater ecological values were also more open to involving external parties favoring the adoption more extensive blockchain solutions. These results highlight blockchain's importance in making carbon finance projects more credible and trustworthy. Practically, the study highlights the importance of carbon finance project scope, nature, and blockchain technology in promoting sustainability initiatives. There are insights into a nuanced approach to addressing complexities of carbon finance within organizations and their supply chains.
Abstract We construct a new daily measure of uncertainty about economic policy for Korea. The economic policy uncertainty (EPU) index is extracted from the reporting about economic policy in major Korean newspapers. We then investigate how daily EPU affects the Kimchi premium, which is the ratio of the Bitcoin price in Korea to that in the United States, adjusted for the exchange rate. Our findings indicate that an increase in Korea's EPU makes Bitcoin more expensive in Korea, while the U.S. dollar strengthens against the Korean won. The stronger appreciation of the U.S. dollar outweighs the increase in Bitcoin prices, thereby lowering the Kimchi premium. Similarly, an increase in U.S. EPU has comparable but weaker effects. The appreciation of the U.S. dollar almost entirely offsets the higher relative price of Bitcoin in Korea, resulting in no significant impact on the Kimchi premium from changes in U.S. EPU. In addition, the results suggest that the Kimchi premium tends to rise with increased trading volume in Korea but decreases as trading volume increases in the United States. We also document that while the Kimchi premium is positively associated with Bitcoin price volatility in Korea, it is not significantly related to that in the United States.
The intersection of Environmental, Social, and Governance (ESG) investing and decentralized finance (DeFi) introduces innovative pathways for integrating sustainability into financial markets. This study conducts a comparative analysis of ESG-focused DeFi protocols, such as KlimaDAO and Regen Network, and traditional ESG investment funds, including the Vanguard ESG U.S. Stock ETF and BlackRock Sustainable Advantage Large Cap Core Fund. Using data from March 2021 to March 2023 and quantitative methods such as ordinary least squares (OLS) regression, the study evaluates financial performance, transparency, and impact assessment. Results indicate that ESG-focused DeFi protocols provide enhanced transparency and potential for higher returns but are hindered by greater volatility and regulatory uncertainty. Conversely, traditional ESG funds offer stability and robust governance frameworks but lack the real-time transparency inherent to DeFi platforms. The findings underscore the need for standardized ESG reporting and offer actionable insights for investors aiming to align sustainability goals with financial performance
The paradigm shift in accounting and reporting is governed by rapidly emerging technologies. Companies are increasingly relying on Distributed Ledger Technology of Blockchain which has enhanced trust, accountability, and transparency to fulfil the requirements of various stakeholders. Sustainability Reporting is one such area which has benefitted greatly from using blockchain as it enables the business to open up the ESG process and deliver information to various stakeholders about how they are meeting the requirements. This research represents a bibliometric analysis of articles on blockchain in sustainability reporting. In this chapter, a detailed analysis has been done on top publication venues, publication trends, and most influential publications as well as likely promising areas in the same field of research, using Visualization of Similarities viewer software for mapping of bibliometric data. This research attempts to provide a good base for literature study for the upcoming research as well as to find a relevant research gap.
This article assesses the temporal and dynamic interconnectedness of cryptocurrency, gold, energy, and stock markets, essential for portfolio diversification. Using a TVP-VAR model, we analyze the return and realized volatility from November 11, 2013, to August 22, 2022. The study focuses on Bitcoin, gold, and renewable energy dynamics. Findings show that volatility shocks are most significant in the crude oil market, while Bitcoin's relationship with other assets is weak during non-crisis periods. Gold and Bitcoin's connection is less pronounced during crises. These results provide insights for portfolio optimization in both crisis and non-crisis periods.
Woon Leong Lin, Nelvin Xe Chung Leow, Wai Mun Lim, Ming Kang Ho · 6 authors
Abstract This investigation explores the integration of blockchain technology (BCT) with circular economy (CE) principles within the automotive sector, leveraging a dataset from the years 2011 to 2019. Employing advanced analytical techniques, including machine learning models and the system generalized method of moments (GMM), the study meticulously assesses BCT's impact on CE practices over the specified period. The dataset, curated from esteemed sources such as CSRHub, Thomson Reuters, and Bloomberg, enhances the reliability and validity of our analysis. Results indicate a positive influence of BCT on the adoption and effectiveness of CE practices in the automotive industry, suggesting that CE practices can bolster firm performance. Notably, the analysis reveals that support vector machines (SVM) and neural networks (NNs) exhibit superior efficacy over the random forest (RF) model in capturing the nuances of the BCTâCE interplay. This is evidenced by their lower rootâmeanâsquare error (RMSE) and mean absolute error (MAE), signifying greater predictive accuracy. The findings illuminate BCT's potential to revolutionize CE practices, optimize resource use, and foster sustainability in the automotive field.
Hanen Ben Ameur, Fouad Jamaani, Mohammed N. Abu-Alfoul
This paper examines gold and cryptocurrencies' hedge and safe-haven capabilities against various downturns, including the COVID-19 pandemic and Geopolitical Risks (GPR), across different market conditions. The study covers a sample period from 2013 to 2021 at a daily frequency, employing the GARCH model and quantile regression with binary variables. The empirical results indicate that neither gold nor cryptocurrencies can act as strong hedges against infectious disease pandemics. However, gold, Bitcoin, and Ethereum exhibit weak safe-haven abilities during geopolitical risks. Using regression quantiles, the study finds that gold demonstrates a strong safe-haven against low and high Infectious Disease Epidemic Market Volatility (IDEMV) during extremely bearish and bullish markets. In contrast, Bitcoin and Ethereum act as strong safe havens only against low IDEMV during extreme bearish markets. Gold also shows a strong hedge propriety against extreme geopolitical events, while cryptocurrencies provide a weak hedge. Overall, gold exhibits strong safe-haven properties against low and high Geopolitical tensions, while cryptocurrencies' hedging and safe-haven abilities vary across markets. These findings convey insights for investors and guidance to supervisors on the evolution of gold, Bitcoin, and Ethereum as safe-haven and hedge instruments during both bearish and bullish markets.
Purpose This paper aims to investigate the relationship between investor attention and market activity (return, volatility and volume) using a sample of 14 clean energy cryptocurrencies (hereafter green cryptocurrency), namely, Chia, Cardano, Stellar, Tron, Ripple, Nano, IOTA, EOS, Bitcoin Green, Alogrand, Hedara, Polkadot, FLOW and Tezos. Design/methodology/approach This paper use 26040 crypto-day observations and a range of econometric techniques, including Dynamic Granger causality, Panel vector autoregression (VAR), Impulse response function and the decomposition of forecast error variance. Findings Based on 26040 crypto-day observations, this paper finds a bidirectional Granger causal relationship between investor attention and all measures of market activity, namely, return, absolute volatility, squared volatility and volume. The panel VAR and impulse response function demonstrate that market activity in the green crypto ecosystem, especially volatility and volume, is considerably responsive to changes in investor attention proxied by Google search volume (hereafter Google search volume (GSV)). The findings also demonstrate a significant asymmetric effect of return and volume on investor attention since past negative shocks âor bad newsâ in return and volume are more likely to grab the investorâs attention. All in all, our study emphasizes the crucial role of investor attention in the green crypto ecosystem. Originality/value (i) The research is the first to shed light on investor attention in the green cryptocurrency market. (ii) The paper uses a wide range of green cryptocurrencies to offer a comprehensive picture of the green cryptocurrency ecosystem. (iii) This paper is the first to use the panel Granger causality to investigate investor attention in the cryptocurrency market which provides several advantages over the conventional Granger causality approach. (iv) This paper is the first to provide novel empirical evidence on the prevalent influence of investor attention in the green crypto market.
Roman Meinhold, Christoph Wagner, Bablu Kumar Dhar
Abstract This review provides a comprehensive analysis of the intersection between digital sustainability (DS) and ecoâenvironmental sustainability (EES), focusing on the opportunities and challenges presented by emerging technologies, such as artificial intelligence (AI), blockchain, electric vehicles (EVs), and cryptocurrencies. The study critically examines the sustainability concerns arising from the increasing demand for digital infrastructure and the depletion of essential natural resources, including tantalum, indium, cobalt, and lithium. Through an interdisciplinary approach, the review evaluates the ethical, technological, and policy implications of integrating DS within the EES framework. It emphasizes the significance of innovative governance and crossâsector collaboration to address the environmental tradeâoffs and digital rebound effects linked with these technologies. Additionally, the review proposes strategies for mitigating the ecological impacts of digital transformation and identifies crucial research gaps, particularly in resource management and longâterm sustainability. The findings aim to guide the alignment of DS with EES, fostering a more balanced and resilient path towards sustainable development. This study offers actionable insights and policy recommendations for industry practitioners, policymakers, and researchers committed to advancing sustainable digital transformation.