An index of cryptocurrency environmental attention (ICEA)

Purpose (1) A concern often expressed in relation to cryptocurrencies is the environmental impact associated with increasing energy consumption and mining pollution. Controversy remains regarding how attention public concerns adversely affect cryptocurrency prices. Therefore, paper aims introduce index of (ICEA), which capture relative extent media discussions surrounding cryptocurrencies. (2) The impacts on long-term macro-financial markets economic development remain part undeveloped research fields. Based these factors, will further examine effects ICEA financial or developments. Design/methodology/approach introduces a new terms response major related events through gathering large amount news stories around – i.e. >778.2 million items from LexisNexis News & Business database, can be considered as Big Data analysing that rich dataset using variety quantitative techniques. vector error correction model (VECM) structural VECM (SVECM) [impulse function (IRF), forecast variance decomposition (FEVD) historical (HD)] are useful for characterising dynamic relationships between aggregate activities. Findings has developed measure sustainability markets' growth, ICEA. significantly positive relationship UCRY indices, volatility (VIX), Brent crude oil (BCO) Bitcoin. (3) negative global policy uncertainty (GlobalEPU) temperature (GTU). Moreover, industrial production (IP) short term, whilst having long term. (4) HD displays higher linkages attention, Bitcoin indices key change prices digital assets. Research limitations/implications significant analysis whether sustainable requirements contributions climate change. Understanding broader market volatility, should developed. point out future legislation directions. Notably, poses question made more environmentally friendly governments' policies address markets. Practical implications develops based coverage captures discussed conjunction empirically investigates other variables [cryptocurrency (UCRY) Bitcoin, VIX, GlobalEPU, BCO, GTU Organisation Economic Co-operation Development IP index]. provides insights into making most effective use online databases research. Social Whilst blockchain technology number great potential transform several industries, issues high-energy CO2 pollution have become some main areas criticism, raising questions about These results essential both policy-makers academics, since highlight an urgent need addressing issues, such growth carbon produced creation this currency. also important investors concerned ethical their investment choices. Originality/value efficient proxy robust empirical evidence concerning study successfully links markets, developments measures, certain novel literature. findings offer up-to-date investors, guiding policy-makers, regulators media, enabling evolve barometer era play role in, example, portfolio optimisation.