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Blockchain: A carbon-neutral facilitator or an environmental destroyer?

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Listed:
  • Qin, Meng
  • Su, Chi-Wei
  • Lobonţ, Oana-Ramona
  • Umar, Muhammad

Abstract

Analysing the effect of digital technology on carbon emissions is crucial for China to achieve carbon neutrality. This exploration utilises the bootstrap full- and sub-sample techniques to investigate the connection between the blockchain market and carbon neutrality, which further evidences whether blockchain is a carbon-neutral facilitator or an environmental destroyer. The conclusions present that the blockchain index (BCI) exerts positive and negative influences on the carbon neutral index (CNI), which is following the STIRPAT model. The positive effects suggest that the rapid progress of blockchain technology accelerates the process of carbon neutrality and vice versa, underlining that blockchain is a carbon-neutral facilitator in China. But this view could not be supported by the negative impacts, primarily due to the public health event and national carbon policy helping to raise CNI even during the periods with low BCI. Conversely, CNI has a positive effect on BCI, revealing that achieving carbon neutrality in China requires the support of blockchain technology, which in turn promotes the development of the blockchain market. Under the new round of scientific and technological revolution, practical implications for China can be put forward to achieve carbon neutrality based on the above conclusions.

Suggested Citation

  • Qin, Meng & Su, Chi-Wei & Lobonţ, Oana-Ramona & Umar, Muhammad, 2023. "Blockchain: A carbon-neutral facilitator or an environmental destroyer?," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 604-615.
    • Handle: RePEc:eee:reveco:v:86:y:2023:i:c:p:604-615
    DOI: 10.1016/j.iref.2023.04.004
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    8. Kong, Fanna & Gao, Zhuoqiong & Oprean-Stan, Camelia, 2023. "Green bond in China: An effective hedge against global supply chain pressure?," Energy Economics, Elsevier, vol. 128(C).
    9. Liu, Fangying & Su, Chi Wei & Tao, Ran & Umar, Muhammad, 2023. "The instability of U.S. economic policy: A hindrance or a stimulus to green financing?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 33-46.
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    More about this item

    Keywords

    Blockchain; Carbon neutrality; Causal relation; Dynamic;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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