The Effect of Bitcoin on Environment during the Period (01/2018 – 12/2022)

Abstract

This research aims to study and know the impact of Bitcoin and its impact on the environment. In addition to reviewing the theoretical aspect of Bitcoin and the impact of carbon dioxide in the atmosphere. Several variables were also taken into consideration to study the impact accurately, during a period 2018-2022 monthly.

The study also touched on measuring the environmental impact through the emission of carbon dioxide into the atmosphere, while the other study variables included several factors such as the price of Bitcoin, the size of Bitcoin, mining, electricity consumption, and the climate policy uncertainty index.

The study relied on time series. The study also followed the Autoregressive Distributed Lag (ARDL) methodology, in addition to Granger causality. The results of the study concluded that there is a negative impact of Bitcoin on the environment through the existence of a complementary relationship between the variables. There is also a unidirectional causal relationship between them.

In addition, the study highlights the importance of replacing electricity consumption with renewable energies that are not harmful to the environment to reduce carbon dioxide emissions, which thus negatively affects the environment.