The Nonlinear Relationship Between Bitcoin Mining and Carbon Emissions in the Context of Renewable Energy ^*

Abstract

This chapter presents an overview of the Bitcoin and its impacts on the environment and economics from the viewpoint of carrying out a systematic analysis of the literature related to the environmental and economic effect of digital currency. It is aimed to summarize and critically examine the points of view regarding Bitcoin mining, considering its effects on global warming and the social environment, employing peer-reviewed data associated through literatures. As a result, this study provides the chance to analyze the set of knowledge regarding the effects of the Bitcoin mining procedure on the ecosystem in regard to energy use and CO₂ emissions regarding unit root tests and causality test based on nonlinear models. The results show that there exists a nonlinear causal relationship between statistics on Bitcoin mining and the CO₂ emissions. The results also imply that Bitcoin remains to be a tool utilized in the economic environment for a range of objectives despite high energy consumption and some negative environmental impact within the scope of renewable energy; hence, authorities would take Bitcoin mining impacts into account to reduce CO₂ emissions.

Citation

Karatas, A.M., Karatas, E., Kapusuzoglu, A. and Ceylan, N.B. (2023), "The Nonlinear Relationship Between Bitcoin Mining and Carbon Emissions in the Context of Renewable Energy ^* ", Dinçer, H. and Yüksel, S. (Ed.) Renewable Energy Investments for Sustainable Business Projects, Emerald Publishing Limited, Leeds, pp. 127-139. https://doi.org/10.1108/978-1-80382-883-120231010