Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/266008 
Year of Publication: 
2022
Series/Report no.: 
CESifo Working Paper No. 9973
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Proponents of Bitcoin argue that demand for electricity from Bitcoin miners can lead to an increase in renewable electricity capacity. We rigorously evaluate this claim by estimating a Bitcoin electricity demand curve and include this demand curve in a long-run model of the Texas electricity market. We find that while Bitcoin mining can indeed increase renewable capacity, it also increases carbon emissions. When Bitcoin miners provide grid management services in the form of demand response, their emissions impact is largely mitigated.
Subjects: 
cryptocurrency
electricity markets
renewable energy
Bitcoin
JEL: 
Q49
Q42
Q41
Document Type: 
Working Paper
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