Sibande, XolaniDemirer, RizaBalcilar, MehmetGupta, Rangan2023-09-142023-09-142023-08Sibande, X., Demirer, R., Balcilar, M. & Gupta, R. 2023, 'On the pricing effects of bitcoin mining in the fossil fuel market : the case of coal', Resources Policy, vol. 85, art. 103539, pp. 1-18, doi : 10.1016/j.resourpol.2023.103539.0301-4207 (print)1873-7641 (online)10.1016/j.resourpol.2023.103539http://hdl.handle.net/2263/92283DATA AVAILABILITY : Data will be made available on request.This study provides novel insight to the role of cryptocurrency mining activities on fossil fuel price dynamics with a particular focus on the coal market. Despite the global climate agenda, coal remains a key energy source for economic growth as it is the dominant fuel for power generation globally. At the same time, the unprecedented growth in the trading and mining of cryptocurrencies has put extra pressure on this market as the mining process consumes vast amounts of energy fuelled predominantly by coal. Hypothesizing that there is a causal link in the direction of coal prices from Bitcoin mining activities due to its effect on electricity consumption, we utilize static and time-varying Granger causality tests to explore the causal linkages between Bitcoin electricity consumption and coal prices as the issue has significant implications for economic development. The results reveal a time-varying causal link from the coal price to Bitcoin mining electricity consumption, suggesting that the coal price is in fact a constraint on mining activities. At the same time, as hypothesized, the evidence in the opposite direction is found to be even stronger, suggesting that electricity consumption from Bitcoin mining activities impacts the coal price. This interplay suggests that electricity consumption from Bitcoin mining activities may be larger than current estimates, highlighting the importance of policy mechanisms to mitigate the possible negative effects on the economy.en© 2022 Elsevier Ltd. All rights reserved. Notice : this is the author’s version of a work that was submitted for publication in Resources Policy. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms are not reflected in this document. A definitive version was subsequently published in Resources Policy, vol. 85, art. 103539, pp. 1-18, doi : 10.1016/j.resourpol.2023.103539.Time-varying Granger causalityCrypo-currency marketCommodity marketsSDG-08: Decent work and economic growthBitcoin miningFossil fuel marketCoalPreprint Article