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

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 be...

Full description

Saved in:
Bibliographic Details
Published in:Sustainability 2023-05, Vol.15 (9), p.7479
Main Authors: Su, Chi-Wei, Song, Yuru, Chang, Hsu-Ling, Zhang, Weike, Qin, Meng
Format: Article
Language:English
Subjects:
Agricultural production
Analysis
Blockchain
Carbon
Crude oil
Crude oil prices
Crypto-currencies
Digital currencies
Electricity
Electronic waste
Emissions
Emissions (Pollution)
Energy consumption
Environmental degradation
Greenhouse gases
Impulse response
Mediation
Private banking
Regression analysis
Sustainability
Uncertainty
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary: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.
ISSN:2071-1050
2071-1050
DOI:10.3390/su15097479