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Climate uncertainty effects on bitcoin ecological footprint through cryptocurrency environmental attention

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  • Zribi, Wissal
  • Boufateh, Talel
  • Guesmi, Khaled

Abstract

In this study, we investigate the dynamic relationship between physical climate risks and Bitcoin's energy consumption and carbon footprint, focusing on cryptocurrency environmental performance. Our research represents the first endeavor to examine the predictive role of natural disasters and global warming in shaping cryptocurrency environmental attention and Bitcoin's ecological footprint, utilizing the Bayesian TVP-SVAR-SV model. The results reveal a significant increase in Bitcoin's energy usage before 2018 and emphasize the crucial impact of cryptocurrency environmental attention in mitigating Bitcoin's carbon and energy footprint. These findings carry substantial policy implications for both investors and policymakers.

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  • Zribi, Wissal & Boufateh, Talel & Guesmi, Khaled, 2023. "Climate uncertainty effects on bitcoin ecological footprint through cryptocurrency environmental attention," Finance Research Letters, Elsevier, vol. 58(PD).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pd:s154461232300956x
    DOI: 10.1016/j.frl.2023.104584
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    Cited by:

    1. Manel Mahjoubi & Jamel Eddine Henchiri, 2024. "The effect of policy uncertainty on the volatility of bitcoin," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 16(4), pages 429-441, May.

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    More about this item

    Keywords

    Climate physical risks; TVP-SVAR-SV; Cryptocurrency environmental attention; Bitcoin energy consumption; Bitcoin carbon footprint;
    All these keywords.

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • G40 - Financial Economics - - Behavioral Finance - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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