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THE DYNAMIC RELATIONSHIP BETWEEN BITCOIN MINING AND CARBON EMISSIONS: CONNECTEDNESS ANALYSIS USING THE TVP-VAR METHOD

BİTCOİN MADENCİLİĞİ VE KARBON EMİSYONU ARASINDAKİ DİNAMİK İLİŞKİ: TVP-VAR YÖNTEMİYLE BAĞLANTILILIK ANALİZİ

Mehmet Çınar(Bursa Uludağ Üniversitesi)0000-0001-8441-243X
Özge Özbek(Bursa Uludağ Üniversitesi)0000-0002-2951-7631
Pages
205–218
Publication Date
2025-12-31
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

The growing profitability of mining encourages additional miners to join the network, which in turn raises overall energy consumption and carbon emissions.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Bitcoin, the cryptocurrency with the highest transaction volume, experiences rising network activity that increases transaction fees and makes mining activities more profitable.
📊
Key Findings & Data:This study examines the connectedness between Bitcoin mining and carbon emissions over the period from February 2017 to November 2024.
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Conclusion & Impact:The growing profitability of mining encourages additional miners to join the network, which in turn raises overall energy consumption and carbon emissions.
🔬Design:Araştırma Makalesi
📍Scope:2017 Verileri
⚙️Variables:Diebold-Yılmaz · TVP-VAR · Bitcoin

Abstract

Bitcoin, the cryptocurrency with the highest transaction volume, experiences rising network activity that increases transaction fees and makes mining activities more profitable. The growing profitability of mining encourages additional miners to join the network, which in turn raises overall energy consumption and carbon emissions. This study examines the connectedness between Bitcoin mining and carbon emissions over the period from February 2017 to November 2024. Hash rate, carbon emissions, electricity consumption, and energy consumption are employed as indicators of Bitcoin mining activity. Using both the static Diebold–Yılmaz spillover index and the time-varying parameter TVP-VAR framework, the analysis reveals that Bitcoin mining significantly influences carbon emission levels. In particular, increases in the hash rate require more computational power, leading to higher electricity consumption and consequently greater carbon emissions. These findings highlight the need for policymakers in the fields of energy and environmental economics to develop sustainable strategies, including the transition to clean energy in mining, the implementation of carbon taxation, and the promotion of green blockchain solutions.

Özet

En yüksek işlem hacmine sahip kripto varlık olan Bitcoin’deki işlem yoğunluğunun artması, ağ üzerindeki işlem ücretlerini yükselterek madenciliği daha kârlı hâle getirmektedir. Madenciliğin kârlılığındaki bu artış yeni madencilerin ağa katılımını teşvik etmekte ve buna bağlı olarak enerji tüketimi ile karbon emisyonu düzeylerini artırmaktadır. Bu çalışmada, Şubat 2017–Kasım 2024 döneminde Bitcoin madenciliği ile karbon emisyonu arasındaki bağlantılılık incelenmiştir. Bitcoin madenciliğini temsilen hash oranı, karbon emisyonu, elektrik tüketimi ve enerji tüketimi değişkenleri kullanılmıştır. Sabit parametreli Diebold–Yılmaz yayılım endeksi ile zamanla değişen parametreleri dikkate alan TVP-VAR yöntemlerinin birlikte kullanıldığı analizler, Bitcoin madencilik faaliyetlerinin karbon emisyonları üzerinde belirgin bir etkiye sahip olduğunu göstermektedir. Özellikle hash oranındaki artış daha fazla donanım kullanımına ve dolayısıyla elektrik tüketimine yol açmakta; artan enerji talebi de karbon emisyonlarını yükseltmektedir. Bu nedenle politika yapıcıların temiz enerji kullanımının teşvik edilmesi, karbon vergisi uygulanması ve yeşil blok zinciri teknolojilerinin geliştirilmesi gibi sürdürülebilir stratejilere yönelmesi önem arz etmektedir.

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Cite This Article

Çınar, M., Özbek, Ö. (2025). THE DYNAMIC RELATIONSHIP BETWEEN BITCOIN MINING AND CARBON EMISSIONS: CONNECTEDNESS ANALYSIS USING THE TVP-VAR METHOD. NİŞANTAŞI ÜNİVERSİTESİ SOSYAL BİLİMLER DERGİSİ, Cilt: 13 Sayı: Özel Sayı Özel Sayı, 205–218. https://doi.org/10.52122/nisantasisbd.1808314

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