An Index of Cryptocurrency Environmental Attention (ICEA)

41 Pages Posted: 16 Jun 2021

See all articles by Brian M. Lucey

Brian M. Lucey

Trinity Business School, Trinity College Dublin; Ho Chi Minh City University of Economics and Finance; Jiangxi University of Finance and Economics

Samuel Vigne

Trinity College (Dublin) - Trinity Business School

Yizhi Wang

Trinity College (Dublin) - Trinity Business School

Larisa Yarovaya

University of Southampton - Southampton Business School

Date Written: June 14, 2021

Abstract

A concern often expressed in relation to cryptocurrencies is their environmental impact associated with increasing electricity consumption which is currently unregulated. To assist researchers and policy makers, we developed a new Index of Cryptocurrency Environmental Attention (ICEA) based on news coverage, that captures the extent to which environmental sustainability concerns are discussed in conjunction with these new assets. We show that the ICEA index, similar to the cryptocurrency price and policy uncertainty index, reacts to major events in the cryptocurrency space. We believe that ICEA can be used for environmental policy development to assess environmental pressure and attention to the growing energy consumption problem of this new digital payment network.

Keywords: Cryprocurrencies, environmental impact, energy consumption, climate change

JEL Classification: C43, C54, D80

Suggested Citation

Lucey, Brian M. and Vigne, Samuel and Wang, Yizhi and Yarovaya, Larisa, An Index of Cryptocurrency Environmental Attention (ICEA) (June 14, 2021). Available at SSRN: https://ssrn.com/abstract=3866535 or http://dx.doi.org/10.2139/ssrn.3866535

Brian M. Lucey (Contact Author)

Trinity Business School, Trinity College Dublin ( email )

The Sutherland Centre, Level 6, Arts Building
Dublin 2
Ireland
+353 1 608 1552 (Phone)
+353 1 679 9503 (Fax)

Ho Chi Minh City University of Economics and Finance ( email )

59C Nguyen D├Čnh Chieu
6th Ward, District 3
Ho Chi Minh City, Ho Chi Minh 70000
Vietnam

Jiangxi University of Finance and Economics ( email )

South Lushan Road
Nanchang, Jiangxi 330013
China

Samuel Vigne

Trinity College (Dublin) - Trinity Business School ( email )

Aras an Phiarsaigh
College Green
Dublin, Leinster D2
Ireland

Yizhi Wang

Trinity College (Dublin) - Trinity Business School ( email )

Aras an Phiarsaigh
College Green
Dublin, Leinster D2
Ireland

Larisa Yarovaya

University of Southampton - Southampton Business School ( email )

Highfield
University Road
Southampton, SO17 1BJ
United Kingdom

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