The Role of Crypto Trading in the Economy, Renewable Energy Consumption and Ecological Degradation

Radosław Miśkiewicz, Krzysztof Matan and Jakub Karnowski
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Radosław Miśkiewicz: Faculty of Economics, Finance and Management, University of Szczecin, 70-453 Szczecin, Poland
Krzysztof Matan: Luma Holding, 4010 St. Julian, Malta
Jakub Karnowski: Liberal Economics Unit, Warsaw School of Economics, 02-554 Warsaw, Poland

Energies, 2022, vol. 15, issue 10, 1-15

Abstract: The rapid growth of information technology and industrial revolutions provoked digital transformation of all sectors, from the government to households. Moreover, digital transformations led to the development of cryptocurrency. However, crypto trading provokes a dilemma loop. On the one hand, crypto trading led to economic development, which allowed attracting additional resources to extending smart and green technologies for de-carbonising the economic growth. On the other hand, crypto trading led to intensifying energy sources, which provoked an increase in greenhouse gas emissions and environmental degradation. The paper aims to analyse the connections between crypto trading, economic development of the country, renewable energy consumption, and environmental degradation. The data for analysis were obtained from: Our World in Data, World Data Bank, Eurostat, Ukrstat, Crystal Blockchain, and KOF Globalisation Index. To check the hypothesis, the paper applied the Pedroni and Kao panel cointegration tests, FMOLS and DOLS panel cointegration models, and Vector Error Correction Models. The findings concluded that the increasing crypto trading led to enhanced GDP, real gross fixed capital formation, and globalisation. However, in the long run, the relationship between crypto trading and the share of renewable energies in total energy consumption was not confirmed by the empirical results. For further directions, it is necessary to analyse the impact of crypto trading on land and water pollution.

Keywords: bitcoin; crypto market; cryptocurrency; trading; digital currency; innovation; ecological degradation; economic growth (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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