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Environmental attention and uncertainties of cryptocurrency market: Examining linkages with crypto-mining stocks

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  • Yousaf, Imran
  • Abrar, Afsheen
  • Yousaf, Umair Bin
  • Goodell, John W.

Abstract

Given public concerns about the negative consequences of environmental consequences of cryptocurrencies, along with their volatilities, we investigate connectedness between cryptocurrency environmental attention (ICEA), cryptocurrency policy uncertainty (UCRY Policy), cryptocurrency price uncertainty (UCRY Price), and crypto-mining stocks. We identify an increase in connectedness over time, indicating that the crypto mining stocks are particularly vulnerable to rising concerns about the environment, prices, and policies surrounding the cryptocurrency market. ICEA and UCRY Policy are net return transmitters for crypto mining stocks. Findings provide implications to global investors and policymakers regarding portfolio management and market stability.

Suggested Citation

  • Yousaf, Imran & Abrar, Afsheen & Yousaf, Umair Bin & Goodell, John W., 2024. "Environmental attention and uncertainties of cryptocurrency market: Examining linkages with crypto-mining stocks," Finance Research Letters, Elsevier, vol. 59(C).
    • Handle: RePEc:eee:finlet:v:59:y:2024:i:c:s1544612323010449
    DOI: 10.1016/j.frl.2023.104672
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    1. C. Vladimir Rodríguez-Caballero & J. Eduardo Vera-Valdés, 2021. "Air Pollution and Mobility, What Carries COVID-19?," Econometrics, MDPI, vol. 9(4), pages 1-17, October.
    2. Kliber, Agata & Będowska-Sójka, Barbara, 2024. "Proof-of-work versus proof-of-stake coins as possible hedges against green and dirty energy," Energy Economics, Elsevier, vol. 138(C).

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    More about this item

    Keywords

    Crypto mining stocks; Cryptocurrency environment attention; Cryptocurrency policy uncertainty;
    All these keywords.

    JEL classification:

    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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