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Impact of global financial and energy markets, uncertainty, and climate change attention on Bitcoin carbon footprint

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  • Dong, Xiyong
  • Jiang, Zhuhua
  • Yoon, Seong-Min

Abstract

Bitcoin mining places huge demands on energy systems and increases carbon emissions, which sequentially adds to the impact of climate change. This study investigates the impact of a series of factors on the Bitcoin carbon footprint (BCF). The overall effect of USD on reducing BCF is greater than that of stocks, bonds, and gold. The negative impacts of coal and natural gas on BCF are more pronounced at lower BCF quantiles, whereas renewable energy has almost entirely negative effects. Moreover, the uncertainty of economic and climate policies, energy and stock markets (EPU, CPU, EUI and VIX), as well as the climate physical risk index (CPR) have negative effects on BCF in most quantiles, especially in the lower and higher quantiles.

Suggested Citation

  • Dong, Xiyong & Jiang, Zhuhua & Yoon, Seong-Min, 2024. "Impact of global financial and energy markets, uncertainty, and climate change attention on Bitcoin carbon footprint," Finance Research Letters, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324012832
    DOI: 10.1016/j.frl.2024.106254
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    More about this item

    Keywords

    Bitcoin carbon footprint; Financial and energy market; Uncertainty; Climate change; MQQR;
    All these keywords.

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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