Can Bitcoin Mining Increase Renewable Electricity Capacity?

August Bruno, Paige Weber and Andrew Yates

No 9973, CESifo Working Paper Series from CESifo

Abstract: Proponents of Bitcoin argue that demand for electricity from Bitcoin miners can lead to an increase in renewable electricity capacity. We rigorously evaluate this claim by estimating a Bitcoin electricity demand curve and include this demand curve in a long-run model of the Texas electricity market. We find that while Bitcoin mining can indeed increase renewable capacity, it also increases carbon emissions. When Bitcoin miners provide grid management services in the form of demand response, their emissions impact is largely mitigated.

Keywords: cryptocurrency; electricity markets; renewable energy; Bitcoin (search for similar items in EconPapers)
JEL-codes: Q41 Q42 Q49 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-ene, nep-env and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_9973

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