Impact of Proof of Work (PoW)-Based Blockchain Applications on the Environment: A Systematic Review and Research Agenda

Nishant Sapra (), Imlak Shaikh and Ashutosh Dash
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Nishant Sapra: Department of Accounting and Finance, Management Development Institute Gurgaon, Mehrauli Road, Sukhrali, Gurgaon 122007, Haryana, India
Imlak Shaikh: Department of Accounting and Finance, Management Development Institute Gurgaon, Mehrauli Road, Sukhrali, Gurgaon 122007, Haryana, India
Ashutosh Dash: Department of Accounting and Finance, Management Development Institute Gurgaon, Mehrauli Road, Sukhrali, Gurgaon 122007, Haryana, India

JRFM, 2023, vol. 16, issue 4, 1-29

Abstract: Blockchain technology is being looked at to solve numerous real-world problems that demand transparency by meeting sustainable goals. Do we ponder whether this technology is a boon or a bane for the environment? This paper analyses blockchain’s dominant consensus method, Proof-of-Work (PoW), which consumes more energy than Malaysia and Sweden and further deteriorates the environment through carbon emissions. This study is the first systematic evaluation of PoW consensus-based blockchain applications’ environmental consequences. We found 11 significant Theories, 6 Contexts, and 26 Methodologies (TCM) in 60 reviewed articles. We propose an Antecedents, Drivers, and Outcomes (ADO) model, which depicts that marginal profits drive high energy consumption and carbon emissions, with non-renewable energy proportionally responsible for carbon emissions. The article distinctively uses an integrated TCM-ADO framework for literature synthesis and the PESTLE framework for reporting future research areas. This is the first study to use the following four frameworks: PRISMA; TCM; ADO; and PESTLE for systematic literature review. Profit is identified as one of the most significant drivers of energy consumption and further carbon emissions. The article proposes 65 future research areas and makes theoretical contributions to the literature that may interest academicians, practitioners, and social stakeholders.

Keywords: cryptocurrency; environment; global warming; carbon emission; proof of work; four framework SLR (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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