Cryptocurrency Expansion, Climate Policy Uncertainty, and Global Structural Breaks: An Empirical Assessment of Environmental and Financial Impacts

This study examines the environmental implications of energy-intensive cryptocurrency mining activities within the broader sustainability debate surrounding blockchain technologies. Focusing specifically on Bitcoin’s proof-of-work–based mining process, the analysis investigates the long-run relationship between greenhouse gas emissions, network-specific technical variables, and climate policy uncertainty using advanced cointegration and asymmetric causality techniques. The findings reveal a stable long-run association between mining-related activity and emissions, alongside pronounced asymmetries whereby positive shocks amplify environmental pressures more strongly than negative shocks mitigate them. Importantly, these results pertain to the mining process itself rather than to blockchain technology as a whole. While blockchain infrastructures may support sustainable applications in areas such as green finance, transparency, and energy management, the evidence presented here highlights that energy-intensive mining remains a significant environmental concern. Accordingly, the study underscores the need for active regulatory frameworks—such as carbon pricing and the polluter-pays principle—to reconcile the environmental costs of crypto mining with the broader sustainability potential of blockchain-based innovations