Version 1
: Received: 21 October 2023 / Approved: 23 October 2023 / Online: 23 October 2023 (10:59:09 CEST)
How to cite:
Dias, R.; Silva, A.F. Revolutionizing Green Portfolio Rebalancing: Sustainable Wealth through Innovations in Green Energy. Preprints2023, 2023101415. https://doi.org/10.20944/preprints202310.1415.v1
Dias, R.; Silva, A.F. Revolutionizing Green Portfolio Rebalancing: Sustainable Wealth through Innovations in Green Energy. Preprints 2023, 2023101415. https://doi.org/10.20944/preprints202310.1415.v1
Dias, R.; Silva, A.F. Revolutionizing Green Portfolio Rebalancing: Sustainable Wealth through Innovations in Green Energy. Preprints2023, 2023101415. https://doi.org/10.20944/preprints202310.1415.v1
APA Style
Dias, R., & Silva, A.F. (2023). Revolutionizing Green Portfolio Rebalancing: Sustainable Wealth through Innovations in Green Energy. Preprints. https://doi.org/10.20944/preprints202310.1415.v1
Chicago/Turabian Style
Dias, R. and Ana Filipa Silva. 2023 "Revolutionizing Green Portfolio Rebalancing: Sustainable Wealth through Innovations in Green Energy" Preprints. https://doi.org/10.20944/preprints202310.1415.v1
Abstract
This article explores the relationship between green energy and cryptocurrencies in the sustainable energy finance sector. The research findings contribute to our understanding of the application of green economy practice, enabling investors in financial markets, policymakers, and stakeholders to make informed decisions and develop specific strategies. Adopting the green economy paradigm makes it possible to promote collaboration and innovation by integrating ethical and responsible principles that can improve the overall quality of processes and boost sustainable growth. Cryptocurrencies have been widely used as financial instruments over the last decade. Given the development of the cryptocurrency market and the growing awareness of greener and more energy-efficient tokens, the green economy has become a popular topic for understanding economic and political issues. However, the literature still lacks clear evidence on how cryptocurrencies interact with green energies. Therefore, this study examines the long- and short-term relationships between dirty cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), clean cryptocurrencies such as Cardano (ADA), Ripple (XRP), Stellar (XLM), and green energies such as ISE Clean Edge Global Wind Energy, S&P Global Clean Energy, S&P TSX Renewable Energy and Clean Technology, Solactive China Clean Energy, in the period from January 2020 to September 2023. The results show that diversification is key, with clean cryptocurrencies such as ADA, XLM and XRP offering diversification opportunities alongside "dirty" cryptocurrencies such as BTC and ETH. Although sustainable energy indices show mixed evidence in the long and short term, they remain relevant for those who focus on clean energy investments. It is also becoming increasingly relevant for investors in sustainable portfolios to assess their environmental impact, especially for energy-intensive cryptocurrencies, and it is advisable to explore sustainable blockchain technologies.
Keywords
green economy; sustainability; cryptocurrency; safe haven; connectivity
Subject
Business, Economics and Management, Business and Management
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
