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Cryptocurrency Mining from an Economic and Environmental Perspective. Analysis of the Most and Least Sustainable Countries

Author

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  • Sergio Luis Náñez Alonso

    (DEKIS Research Group, Department of Economics, Catholic University of Avila, 05005 Ávila, Spain)

  • Javier Jorge-Vázquez

    (DEKIS Research Group, Department of Economics, Catholic University of Avila, 05005 Ávila, Spain)

  • Miguel Ángel Echarte Fernández

    (DEKIS Research Group, Department of Economics, Catholic University of Avila, 05005 Ávila, Spain)

  • Ricardo Francisco Reier Forradellas

    (DEKIS Research Group, Department of Economics, Catholic University of Avila, 05005 Ávila, Spain)

Abstract

There are different studies that point out that the price of electricity is a fundamental factor that will influence the mining decision, due to the cost it represents. There is also an ongoing debate about the pollution generated by cryptocurrency mining, and whether or not the use of renewable energies will solve the problem of its sustainability. In our study, starting from the Environmental Performance Index (EPI), we have considered several determinants of cryptocurrency mining: energy price, how that energy is generated, temperature, legal constraints, human capital, and R&D&I. From this, via linear regression, we recalculated this EPI by including the above factors that affect cryptocurrency mining in a sustainable way. The study determines, once the EPI has been readjusted, that the most sustainable countries to perform cryptocurrency mining are Denmark and Germany. In fact, of the top ten countries eight of them are European (Denmark, Germany, Sweden, Switzerland, Finland, Austria, and the United Kingdom); and the remaining two are Asian (South Korea and Japan).

Suggested Citation

  • Sergio Luis Náñez Alonso & Javier Jorge-Vázquez & Miguel Ángel Echarte Fernández & Ricardo Francisco Reier Forradellas, 2021. "Cryptocurrency Mining from an Economic and Environmental Perspective. Analysis of the Most and Least Sustainable Countries," Energies, MDPI, vol. 14(14), pages 1-22, July.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:14:p:4254-:d:594340
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    References listed on IDEAS

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    Cited by:

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    3. Ren, Yi-Shuai & Ma, Chao-Qun & Kong, Xiao-Lin & Baltas, Konstantinos & Zureigat, Qasim, 2022. "Past, present, and future of the application of machine learning in cryptocurrency research," Research in International Business and Finance, Elsevier, vol. 63(C).
    4. Rina Astini & Kehkashan Ishrat & Yanto Ramli & Tafiprios Tafiprios & Kwong Wing Chong & Ooi Chee Keong, 2023. "Nexus among Crypto Trading, Environmental Degradation, Economic Growth and Energy Usage: Analysis of Top 10 Cryptofriendly Asian Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 339-347, September.
    5. Srivastava, Richa & Singh, Deepak Kumar & Rana, Nripendra P., 2024. "Analysis of barriers to investment and mining in cryptocurrency for traditional and tech-savvy investors: A fuzzy approach," Technology in Society, Elsevier, vol. 77(C).
    6. Maciej Sołtysik & Mariusz Kozakiewicz & Jakub Jasiński, 2022. "Improvement of Operating Efficiency of Energy Cooperatives with the Use of “Crypto-Coin Mining”," Energies, MDPI, vol. 15(21), pages 1-25, October.
    7. Vasiliy Andreevich Laptev & Daria Rinatovna Feyzrakhmanova, 2021. "Digitalization of Institutions of Corporate Law: Current Trends and Future Prospects," Laws, MDPI, vol. 10(4), pages 1-19, December.
    8. Favourate Y. Mpofu, 2022. "Green Taxes in Africa: Opportunities and Challenges for Environmental Protection, Sustainability, and the Attainment of Sustainable Development Goals," Sustainability, MDPI, vol. 14(16), pages 1-26, August.
    9. Łęt Blanka & Sobański Konrad & Świder Wojciech & Włosik Katarzyna, 2022. "Is the cryptocurrency market efficient? Evidence from an analysis of fundamental factors for Bitcoin and Ethereum," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 58(4), pages 351-370, December.
    10. Floros Flouros & Victoria Pistikou & Vasilios Plakandaras, 2022. "Geopolitical Risk as a Determinant of Renewable Energy Investments," Energies, MDPI, vol. 15(4), pages 1-21, February.

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