Blockchain in Sustainable Finance: Evidence from Cryptocurrency, Green Bonds, and Clean Energy

Aim: This study explores the interaction between clean energy, sustainability, green bonds, and six blockchain indices (e.g., CBDCAI, ICEA, Bitcoin, Ethereum) from October 2017 to June 2023 to highlight sustainability issues related to recent financial innovations. The study aims to examine the extent to which sustainable equity prices are impacted by the stochastic features of Bitcoin and CBDC news across bull, bear, and normal market phases.Method: This study utilizes the Quantile Autoregressive Distributed Lag (QARDL) method to examine the short- and long-run impacts.Results: The QARDL results reveal a significant long-term equilibrium between blockchain variables and the green industry, with varying reactions across quantiles. Bitcoin, Ethereum, and green bonds positively impact the sustainable market index over time, especially in higher quantiles, supporting Sustainable Development Goals (SDGs). Conclusion: The study advocates using blockchain for SDG policies and renewable energy to reduce blockchain’s environmental impact and this research extends the literature by offering a deeper insight into the financial and environmental influences shaping sustainability.