Bitcoin’s Environmental Impact: Examining Carbon Emission Patterns Through Price and Volume Dynamics

We investigate the impact of bitcoin’s price and trading volume on its electricity consumption, carbon emissions, and emission intensity using a Granger causality approach. The findings reveal a strong relationship between bitcoin’s price and trading volume with power consumption and carbon emissions. The analysis highlights both long- and short-term relationships, while indicating that carbon emission intensity is less affected. The results of the study underscore the urgency of addressing bitcoin’s carbon footprint for a sustainable future.