IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2023-05-39.html
   My bibliography  Save this article

Nexus among Crypto Trading, Environmental Degradation, Economic Growth and Energy Usage: Analysis of Top 10 Cryptofriendly Asian Economies

Author

Listed:
  • Rina Astini

    (Universitas Mercu Buana, Indonesia)

  • Kehkashan Ishrat

    (Department of Management Sciences, Karachi Institute of Economics and Technology, Pakistan)

  • Yanto Ramli

    (Universitas Mercu Buana, Indonesia)

  • Tafiprios Tafiprios

    (Universitas Mercu Buana, Indonesia)

  • Kwong Wing Chong

    (Taylor's College Malaysia, Malaysia.)

  • Ooi Chee Keong

    (School of Accounting and Finance, Faculty of Business and Law, Taylor's University, Malaysia.)

Abstract

The higher discharge of carbon emissions in environment is endangering human life as well as eco system. With the emergence of digital technology, crypto trading and blockchain technologies are also causing the paradigm shift in technological needs, however, in parallel, creating unresolved environmental problems especially in the top 10 crypto-friendly Asian economies due to the higher percentage of poisonous emissions. Thereby, the study attempts to scrutinize the nexus among crypto-trading, environmental degradation, economic growth and energy usage. CO2 emissions are taken as a proxy of environmental degradation in the context of crypto friendly Asian economies. The data extracted from WDI and coin market cap covering the period from 2012-2020. The article applied CS-ARDL technique in order to find the association between variables in short and long run. Granger Causality test is also applied to find out the causality among constructs. Findings expose that bi-directional causality exists between crypto trading and carbon emission and crypto trading and energy usage, hence, disturbing environmental sustainability due to high emissions. The paper suggests policy makers and other institutional officers to de-socialize those block chain technologies which consumes high energy and use green technology as their substitute. This helps in the reduction of environmental damages.

Suggested Citation

  • Rina Astini & Kehkashan Ishrat & Yanto Ramli & Tafiprios Tafiprios & Kwong Wing Chong & Ooi Chee Keong, 2023. "Nexus among Crypto Trading, Environmental Degradation, Economic Growth and Energy Usage: Analysis of Top 10 Cryptofriendly Asian Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 339-347, September.
    • Handle: RePEc:eco:journ2:2023-05-39
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/14545/7493
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/14545
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Philippas, Dionisis & Rjiba, Hatem & Guesmi, Khaled & Goutte, Stéphane, 2019. "Media attention and Bitcoin prices," Finance Research Letters, Elsevier, vol. 30(C), pages 37-43.
    2. Soheila Khoshnevis Yazdi & Anahita Golestani Dariani, 2019. "CO2 emissions, urbanisation and economic growth: evidence from Asian countries," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 510-530, January.
    3. Baek, Jungho, 2015. "Environmental Kuznets curve for CO2 emissions: The case of Arctic countries," Energy Economics, Elsevier, vol. 50(C), pages 13-17.
    4. Joakim Westerlund & David L. Edgerton, 2008. "A Simple Test for Cointegration in Dependent Panels with Structural Breaks," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(5), pages 665-704, October.
    5. Shangrong Jiang & Yuze Li & Quanying Lu & Yongmiao Hong & Dabo Guan & Yu Xiong & Shouyang Wang, 2021. "Policy assessments for the carbon emission flows and sustainability of Bitcoin blockchain operation in China," Nature Communications, Nature, vol. 12(1), pages 1-10, December.
    6. Hongfeng Peng & Xiaoyu Tan & Yanli Li & Liqin Hu, 2016. "Economic Growth, Foreign Direct Investment and CO 2 Emissions in China: A Panel Granger Causality Analysis," Sustainability, MDPI, vol. 8(3), pages 1-13, March.
    7. Dennis B. Desmond & David Lacey & Paul Salmon, 2019. "Evaluating cryptocurrency laundering as a complex socio-technical system," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 22(3), pages 480-497, July.
    8. Menyah, Kojo & Wolde-Rufael, Yemane, 2010. "Energy consumption, pollutant emissions and economic growth in South Africa," Energy Economics, Elsevier, vol. 32(6), pages 1374-1382, November.
    9. Bojaj, Martin M. & Muhadinovic, Milica & Bracanovic, Andrej & Mihailovic, Andrej & Radulovic, Mladen & Jolicic, Ivan & Milosevic, Igor & Milacic, Veselin, 2022. "Forecasting macroeconomic effects of stablecoin adoption: A Bayesian approach," Economic Modelling, Elsevier, vol. 109(C).
    10. Jan Polcyn & Yana Us & Oleksii Lyulyov & Tetyana Pimonenko & Aleksy Kwilinski, 2021. "Factors Influencing the Renewable Energy Consumption in Selected European Countries," Energies, MDPI, vol. 15(1), pages 1-27, December.
    11. Yizhi Wang & Brian Lucey & Samuel Alexandre Vigne & Larisa Yarovaya, 2022. "An index of cryptocurrency environmental attention (ICEA)," China Finance Review International, Emerald Group Publishing Limited, vol. 12(3), pages 378-414, January.
    12. Mohammad Enamul Hoque & Mohd Azlan Shah Zaidi, 2019. "The impacts of global economic policy uncertainty on stock market returns in regime switching environment: Evidence from sectoral perspectives," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 24(2), pages 991-1016, April.
    13. Dyhrberg, Anne Haubo, 2016. "Bitcoin, gold and the dollar – A GARCH volatility analysis," Finance Research Letters, Elsevier, vol. 16(C), pages 85-92.
    14. Max J. Krause & Thabet Tolaymat, 2018. "Author Correction: Quantification of energy and carbon costs for mining cryptocurrencies," Nature Sustainability, Nature, vol. 1(12), pages 814-814, December.
    15. Oleksandr Melnychenko, 2019. "Application of artificial intelligence in control systems of economic activity," Virtual Economics, The London Academy of Science and Business, vol. 2(3), pages 30-40, July.
    16. Sergio Luis Náñez Alonso & Javier Jorge-Vázquez & Miguel Ángel Echarte Fernández & Ricardo Francisco Reier Forradellas, 2021. "Cryptocurrency Mining from an Economic and Environmental Perspective. Analysis of the Most and Least Sustainable Countries," Energies, MDPI, vol. 14(14), pages 1-22, July.
    17. repec:srs:journl:jemt:v:9:y:2018:i:7:p:1443-1456 is not listed on IDEAS
    18. Gerritsen, Dirk F. & Bouri, Elie & Ramezanifar, Ehsan & Roubaud, David, 2020. "The profitability of technical trading rules in the Bitcoin market," Finance Research Letters, Elsevier, vol. 34(C).
    19. Luisanna Cocco & Andrea Pinna & Michele Marchesi, 2017. "Banking on Blockchain: Costs Savings Thanks to the Blockchain Technology," Future Internet, MDPI, vol. 9(3), pages 1-20, June.
    20. Max J. Krause & Thabet Tolaymat, 2018. "Quantification of energy and carbon costs for mining cryptocurrencies," Nature Sustainability, Nature, vol. 1(11), pages 711-718, November.
    21. Oleksii Lyulyov & Maksym Paliienko & Lesia Prasol & Tetyana Vasylieva & Oleksandra Kubatko & Victoria Kubatko, 2021. "Determinants of shadow economy in transition countries: economic and environmental aspects," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 43(2/3), pages 166-182.
    22. Radosław Miśkiewicz & Krzysztof Matan & Jakub Karnowski, 2022. "The Role of Crypto Trading in the Economy, Renewable Energy Consumption and Ecological Degradation," Energies, MDPI, vol. 15(10), pages 1-15, May.
    23. Olena CHYGRYN & Tetyana PIMONENKO & Oleksii LUYLYOV & Alina GONCHAROVA, 2018. "Green Bonds like the Incentive Instrument for Cleaner Production at the Government and Corporate Levels Experience from EU to Ukraine," Journal of Advanced Research in Management, ASERS Publishing, vol. 9(7), pages 1443-1456.
    24. Alkhathlan, Khalid & Javid, Muhammad, 2013. "Energy consumption, carbon emissions and economic growth in Saudi Arabia: An aggregate and disaggregate analysis," Energy Policy, Elsevier, vol. 62(C), pages 1525-1532.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Muhammad Mohsin & Sobia Naseem & Muhammad Zia‐ur‐Rehman & Sajjad Ahmad Baig & Shazia Salamat, 2023. "The crypto‐trade volume, GDP, energy use, and environmental degradation sustainability: An analysis of the top 20 crypto‐trader countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 651-667, January.
    2. Radosław Miśkiewicz & Krzysztof Matan & Jakub Karnowski, 2022. "The Role of Crypto Trading in the Economy, Renewable Energy Consumption and Ecological Degradation," Energies, MDPI, vol. 15(10), pages 1-15, May.
    3. Łęt Blanka & Sobański Konrad & Świder Wojciech & Włosik Katarzyna, 2022. "Is the cryptocurrency market efficient? Evidence from an analysis of fundamental factors for Bitcoin and Ethereum," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 58(4), pages 351-370, December.
    4. Arfaoui, Nadia & Naeem, Muhammad Abubakr & Boubaker, Sabri & Mirza, Nawazish & Karim, Sitara, 2023. "Interdependence of clean energy and green markets with cryptocurrencies," Energy Economics, Elsevier, vol. 120(C).
    5. Lisha, Liu & Mousa, Saeed & Arnone, Gioia & Muda, Iskandar & Huerta-Soto, Rosario & Shiming, Zhai, 2023. "Natural resources, green innovation, fintech, and sustainability: A fresh insight from BRICS," Resources Policy, Elsevier, vol. 80(C).
    6. Mingbo Zheng & Gen-Fu Feng & Xinxin Zhao & Chun-Ping Chang, 2023. "The transaction behavior of cryptocurrency and electricity consumption," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-18, December.
    7. Bouri, Elie & Shahzad, Syed Jawad Hussain & Roubaud, David & Kristoufek, Ladislav & Lucey, Brian, 2020. "Bitcoin, gold, and commodities as safe havens for stocks: New insight through wavelet analysis," The Quarterly Review of Economics and Finance, Elsevier, vol. 77(C), pages 156-164.
    8. Abakah, Emmanuel Joel Aikins & Wali Ullah, GM & Adekoya, Oluwasegun B. & Osei Bonsu, Christiana & Abdullah, Mohammad, 2023. "Blockchain market and eco-friendly financial assets: Dynamic price correlation, connectedness and spillovers with portfolio implications," International Review of Economics & Finance, Elsevier, vol. 87(C), pages 218-243.
    9. Baur, Dirk G. & Oll, Josua, 2022. "Bitcoin investments and climate change: A financial and carbon intensity perspective," Finance Research Letters, Elsevier, vol. 47(PA).
    10. Zhang, Dongna & Chen, Xihui Haviour & Lau, Chi Keung Marco & Xu, Bing, 2023. "Implications of cryptocurrency energy usage on climate change," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    11. Lorente, Daniel Balsalobre & Mohammed, Kamel Si & Cifuentes-Faura, Javier & Shahzad, Umer, 2023. "Dynamic connectedness among climate change index, green financial assets and renewable energy markets: Novel evidence from sustainable development perspective," Renewable Energy, Elsevier, vol. 204(C), pages 94-105.
    12. Sharif, Arshian & Brahim, Mariem & Dogan, Eyup & Tzeremes, Panayiotis, 2023. "Analysis of the spillover effects between green economy, clean and dirty cryptocurrencies," Energy Economics, Elsevier, vol. 120(C).
    13. Jiang, Shangrong & Li, Yuze & Wang, Shouyang & Zhao, Lin, 2022. "Blockchain competition: The tradeoff between platform stability and efficiency," European Journal of Operational Research, Elsevier, vol. 296(3), pages 1084-1097.
    14. Agur, Itai & Lavayssière, Xavier & Villegas Bauer, Germán & Deodoro, Jose & Martinez Peria, Soledad & Sandri, Damiano & Tourpe, Hervé, 2023. "Lessons from crypto assets for the design of energy efficient digital currencies," Ecological Economics, Elsevier, vol. 212(C).
    15. Ndubuisi, Gideon & Urom, Christian, 2023. "Dependence and risk spillovers among clean cryptocurrencies prices and media environmental attention," Research in International Business and Finance, Elsevier, vol. 65(C).
    16. Yue, Shen & Munir, Irfan Ullah & Hyder, Shabir & Nassani, Abdelmohsen A. & Qazi Abro, Muhammad Moinuddin & Zaman, Khalid, 2020. "Sustainable food production, forest biodiversity and mineral pricing: Interconnected global issues," Resources Policy, Elsevier, vol. 65(C).
    17. Aleksy Kwilinski & Oleksii Lyulyov & Tetyana Pimonenko, 2023. "Inclusive Economic Growth: Relationship between Energy and Governance Efficiency," Energies, MDPI, vol. 16(6), pages 1-16, March.
    18. Chindo Sulaiman & A. S. Abdul-Rahim, 2018. "Population Growth and CO2 Emission in Nigeria: A Recursive ARDL Approach," SAGE Open, , vol. 8(2), pages 21582440187, April.
    19. Xuejia Sang & Xiaopeng Leng & Linfu Xue & Xiangjin Ran, 2022. "Based on the Time-Spatial Power-Based Cryptocurrency Miner Driving Force Model, Establish a Global CO 2 Emission Prediction Framework after China Bans Cryptocurrency," Sustainability, MDPI, vol. 14(9), pages 1-18, April.
    20. Chen, Conghui & Liu, Lanlan, 2022. "How effective is China's cryptocurrency trading ban?," Finance Research Letters, Elsevier, vol. 46(PB).

    More about this item

    Keywords

    Crypto-Trading; Environmental Sustainability; Asian Economies; Economic Growth;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • F18 - International Economics - - Trade - - - Trade and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2023-05-39. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.