A clean, green haven?—Examining the relationship between clean energy, clean and dirty cryptocurrencies

Boru Ren and Brian Lucey

Energy Economics, 2022, vol. 109, issue C

Abstract: Is clean energy a safe haven for cryptocurrencies, or vice versa? In this paper, we investigate the hedge and safe haven property of a wide range of clean energy indices against two distinct types of cryptocurrencies based on their energy consumption levels, termed “dirty” and “clean”. Statistical evidence shows that clean energy is not a direct hedge for either of types. However, it serves as at least a weak safe haven for both in extreme bearish markets. Moreover, clean energy is more likely to be a safe haven for dirty cryptocurrencies than clean cryptocurrencies during increased uncertainty. We further study the spillover patterns among clean energy, cryptocurrency, stock, and gold markets. Weak connectedness is found between clean energy and cryptocurrencies which implies the potential use of clean energy as a hedge and diversification tool for cryptocurrencies in the future.

Keywords: Cryptocurrencies; Clean energy; Safe haven; Spillovers; Connectedness; DCC-GARCH (search for similar items in EconPapers)
JEL-codes: G10 G11 G15 Q4 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (41)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:109:y:2022:i:c:s0140988322001281

DOI: 10.1016/j.eneco.2022.105951

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