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

Xiyong Dong, Zhuhua Jiang and Seong-Min Yoon

Finance Research Letters, 2024, vol. 70, issue C

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.

Keywords: Bitcoin carbon footprint; Financial and energy market; Uncertainty; Climate change; MQQR (search for similar items in EconPapers)
JEL-codes: C58 G11 Q53 Q54 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324012832

DOI: 10.1016/j.frl.2024.106254

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