Version 1
: Received: 4 April 2024 / Approved: 5 April 2024 / Online: 5 April 2024 (09:18:09 CEST)
How to cite:
Gürsoy, S.; Jóźwik, B.; Dogan, M.; Zeren, F.; Gulcan, N. Impact of Climate Policy Uncertainty, Clean Energy Index, and Carbon Emission Allowance Prices on Bitcoin Returns. Preprints2024, 2024040423. https://doi.org/10.20944/preprints202404.0423.v1
Gürsoy, S.; Jóźwik, B.; Dogan, M.; Zeren, F.; Gulcan, N. Impact of Climate Policy Uncertainty, Clean Energy Index, and Carbon Emission Allowance Prices on Bitcoin Returns. Preprints 2024, 2024040423. https://doi.org/10.20944/preprints202404.0423.v1
Gürsoy, S.; Jóźwik, B.; Dogan, M.; Zeren, F.; Gulcan, N. Impact of Climate Policy Uncertainty, Clean Energy Index, and Carbon Emission Allowance Prices on Bitcoin Returns. Preprints2024, 2024040423. https://doi.org/10.20944/preprints202404.0423.v1
APA Style
Gürsoy, S., Jóźwik, B., Dogan, M., Zeren, F., & Gulcan, N. (2024). Impact of Climate Policy Uncertainty, Clean Energy Index, and Carbon Emission Allowance Prices on Bitcoin Returns. Preprints. https://doi.org/10.20944/preprints202404.0423.v1
Chicago/Turabian Style
Gürsoy, S., Feyyaz Zeren and Nazligul Gulcan. 2024 "Impact of Climate Policy Uncertainty, Clean Energy Index, and Carbon Emission Allowance Prices on Bitcoin Returns" Preprints. https://doi.org/10.20944/preprints202404.0423.v1
Abstract
This research aimed to investigate the relationship between climate policy uncertainty (CPU), clean energy (ENERGY), carbon emission allowance prices (CARBON), and Bitcoin returns (BTC) for the period from August 2012 to August 2022. The empirical analysis strategies utilized in this study included the Fourier Bootstrap ARDL long-term coefficient estimator, Fourier Granger Causality, and Fourier Toda Yamamoto Causality methods. Following the confirmation of cointegration among the variables, we observed a positive relationship between BTC and CARBON, a positive relationship between BTC and CPU, and a negative relationship between BTC and ENERGY. In terms of causal associations, we identified one-way causality running from CARBON to BTC, BTC to CPU, and BTC to the ENERGY variable. The study underscores the potential benefits and revenue opportunities for investors seeking diversified investment strategies in light of climate change concerns. Furthermore, it suggests actionable strategies for policymakers, such as implementing carbon taxes and educational campaigns, to foster a transition towards clean energy sources within the cryptocurrency mining sector and thereby mitigate environmental impacts.
Keywords
carbon emission allowance; climate policy uncertainty; clean energy index; bitcoin
Subject
Business, Economics and Management, Finance
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.
