Quantile time-frequency connectedness between cryptocurrency volatility and renewable energy volatility during the COVID-19 pandemic and Ukraine-Russia conflicts

Ha, Le Thanh

doi:10.1016/j.renene.2022.11.062

Cited by 60 publications

(7 citation statements)

References 63 publications

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“…Using this analysis, we attempt to identify and quantify this relationship. With crypto volatility and energy volatility having connectedness in the long and short run (Le, 2023), the debate on how the changes in the crypto market affect bitcoin-based electricity consumption has been triggered. The nature of the relationship can help draft suitable strategies to reduce bitcoin-based energy consumption.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of Bitcoin mining and crypto market determinants on Bitcoin-based energy consumption

Sapra

Shaikh

2023

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PurposeWhile Blockchain can serve us, Bitcoin threatens our survival. If Bitcoin is assumed to be a country, it will rank 38th globally for energy consumption. With 90.2 metric million tonnes of carbon dioxide, Bitcoin mining and trading has emerged as an environmental threat. The current study investigates how the trading-specific variables, the prices of Crypto Index and Ethereum, affect bitcoin-based energy consumption. Also, the role of mining-specific variables is analyzed.Design/methodology/approachThe study uses monthly data from various sources collected from December 2018 to January 2023. The authors used the Autoregressive Distributed Lag (ARDL) Model to determine the short- and long-term relationships between variables. This study uses the Theory of Green Marketing and the Theory of Cross Elasticity of Demand as a theoretical lens.FindingsThe findings show that escalating crypto market index and Ethereum prices with a one-month lag increases bitcoin-specific electricity consumption and carbon emissions. Green investors may shift to cryptocurrencies based on consensus other than of Proof-of-Work. Ethereum behaves like a substitute for Bitcoin, reflected by the long-term positive relationship between Bitcoin's energy consumption and Ethereum prices.Originality/valueThe study analyses how the crypto market index and Ethereum price affect bitcoin-based energy use. The relationships identified are substantiated by the literature to provide suggestions to green investors and policymakers to mitigate the harmful impact of Bitcoin's colossal energy consumption on the natural environment.

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Section: Literature Reviewmentioning

confidence: 99%

Impact of Bitcoin mining and crypto market determinants on Bitcoin-based energy consumption

Sapra

Shaikh

2023

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“…Yuan et al [11] employ quantile connectedness to discuss the whole situation and dynamic evolution of information spillovers in the bitcoin market and discover that the hash rate and electricity demand are the main sources of risks. Le [15] indicates that the dynamic connectedness between crypto and energy volatilities is about 25% in the short run and 9% in the long run, the uncertain incidents (e.g., the COVID-19 pandemic and the Russo-Ukrainian war) exert specific impacts on the crypto and renewable energy volatilities. Salisu et al [32] evidence that an increase in the oil price might be inclined to raise the costs of producing bitcoin, which is a benefit that lowers its return and then reduces its trading and volatility.…”

Section: Literature Reviewmentioning

confidence: 99%

“…There exist three innovations in this exploration. To begin with, the existing literature primarily pays attention to the connection between cryptocurrency and energy [11,15], the effect of cryptocurrency mining and trading on the environment [16,17], and the interaction between cryptocurrency and carbon markets [18][19][20]. However, no investigations probe the cryptocurrency market and carbon emissions from a novel perspective of cryptocurrency policy uncertainty.…”

Section: Introductionmentioning

confidence: 99%

Could Cryptocurrency Policy Uncertainty Facilitate U.S. Carbon Neutrality?

Song

Chang

et al. 2023

Sustainability

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Investigating the essential impact of the cryptocurrency market on carbon emissions is significant for the U.S. to realize carbon neutrality. This exploration employs low-frequency vector auto-regression (LF-VAR) and mixed-frequency VAR (MF-VAR) models to capture the complicated interrelationship between cryptocurrency policy uncertainty (CPU) and carbon emission (CE) and to answer the question of whether cryptocurrency policy uncertainty could facilitate U.S. carbon neutrality. By comparison, the MF-VAR model possesses a higher explanatory power than the LF-VAR model; the former’s impulse response indicates a negative CPU effect on CE, suggesting that cryptocurrency policy uncertainty is a promoter for the U.S. to realize the goal of carbon neutrality. In turn, CE positively impacts CPU, revealing that mass carbon emissions would raise public and national concerns about the environmental damages caused by cryptocurrency transactions and mining. Furthermore, CPU also has a mediation effect on CE; that is, CPU could affect CE through the oil price (OP). In the context of a more uncertain cryptocurrency market, valuable insights for the U.S. could be offered to realize carbon neutrality by reducing the traditional energy consumption and carbon emissions of cryptocurrency trading and mining.

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“…Attarzadeh and Balcilar [ 25 ] and Urom, Abid, Guesmi, and Chevallier [ 26 ] also find that Bitcoin and other financial markets are tenuously linked during non-crisis periods, while their connectedness strengthens substantially during times of crisis. Furthermore, Le [ 27 ] investigates the quantile time-frequency connectedness between the volatility of cryptocurrencies and that of renewable energy revealing that the dynamic connectedness is different across different frequencies. As a result, we decide to use the approach that allows for the analysis of connectedness over different quantiles and frequencies.…”

Section: Introductionmentioning

confidence: 99%

Quantile frequency connectedness between energy tokens, crypto market, and renewable energy stock markets

Wang,

Liu,

Xie

2024

Heliyon

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Quantile time-frequency connectedness between cryptocurrency volatility and renewable energy volatility during the COVID-19 pandemic and Ukraine-Russia conflicts

Cited by 60 publications

References 63 publications

Impact of Bitcoin mining and crypto market determinants on Bitcoin-based energy consumption

Impact of Bitcoin mining and crypto market determinants on Bitcoin-based energy consumption

Could Cryptocurrency Policy Uncertainty Facilitate U.S. Carbon Neutrality?

Quantile frequency connectedness between energy tokens, crypto market, and renewable energy stock markets

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