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The changing dynamics of crypto mining and environmental impact

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  • Kumari, Pooja
  • Mamidala, Vasanthi
  • Chavali, Kavita
  • Behl, Abhishek

Abstract

This study investigates the association between energy consumption in Bitcoin mining and energy indices. The study also examines the moderating effect of COVID-19 on the relationships between energy consumption in Bitcoin mining and energy indices. We applied vector autoregression and vector error correction models. Before COVID-19, the relationship between Bitcoin mining and the clean energy index was significant. However, after the pandemic, this relation was found to be less significant compared to Bitcoin mining and the dirty energy index association. The findings help investors and policymakers to understand the environmental impact of Bitcoin mining.

Suggested Citation

  • Kumari, Pooja & Mamidala, Vasanthi & Chavali, Kavita & Behl, Abhishek, 2024. "The changing dynamics of crypto mining and environmental impact," International Review of Economics & Finance, Elsevier, vol. 89(PA), pages 940-953.
    • Handle: RePEc:eee:reveco:v:89:y:2024:i:pa:p:940-953
    DOI: 10.1016/j.iref.2023.08.004
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    More about this item

    Keywords

    Bitcoin; Energy consumption; Energy indices; Vector autoregression; Vector error correction model;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F18 - International Economics - - Trade - - - Trade and Environment
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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