ESG equities and Bitcoin: responsible investment and risk management perspective

IF 1.7 Q2 ECONOMICS

International Journal of Ethics and Systems Pub Date : 2023-09-20 DOI:10.1108/ijoes-03-2023-0049

Yosuke Kakinuma

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引用次数: 0

Abstract

Purpose While an increasing number of investors value socially responsible investment practices, Bitcoin has faced criticism for its carbon footprint resulting from excessive mining power consumption. By examining Bitcoin’s interconnectedness with environmental, social and governance (ESG) equities, this study aims to construct a socially responsible investment strategy for cypto investors. Design/methodology/approach This study uses wavelet analysis and a time-varying parameter vector autoregressive (TVP-VAR) model to uncover the interdependence between ESG equities and Bitcoin. This study computes the optimal ratio, showing that Bitcoin significantly reduces portfolio risk when combined with green stocks. Findings The results show that co-movements between green stocks and Bitcoin are low, indicating that they are suitable combinations for portfolio diversification. From an environmental perspective, this investment strategy offers a theoretical solution to mitigate the negative impacts associated with Bitcoin mining. It aims to address the dilemma faced by sustainability-conscious investors, who must navigate the economic payoff of Bitcoin against their commitment to green investment principles. Practical implications The findings can provide valuable insights for policymakers seeking to develop strategies that promote sustainable investments among crypto investors. Originality/value Research on ethical investment practices in the cryptocurrency market remains in the early stages of development. Ethical investors can benefit from including Bitcoin in their ESG equity portfolios.

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ESG股票和比特币:负责任的投资和风险管理视角

虽然越来越多的投资者重视社会责任投资实践，但比特币因过度采矿电力消耗而导致的碳足迹而受到批评。通过研究比特币与环境、社会和治理(ESG)股票的相互联系，本研究旨在为加密投资者构建一个对社会负责的投资策略。本研究使用小波分析和时变参数向量自回归(TVP-VAR)模型来揭示ESG股票与比特币之间的相互依存关系。本研究计算了最优比例，表明比特币与绿色股票组合时显著降低了投资组合风险。结果表明，绿色股票与比特币的协同波动较低，是投资组合多元化的合适组合。从环境的角度来看，这种投资策略提供了一个理论上的解决方案，以减轻与比特币挖矿相关的负面影响。它旨在解决具有可持续性意识的投资者所面临的困境，他们必须在比特币的经济回报与他们对绿色投资原则的承诺之间进行导航。这些发现可以为寻求制定促进加密投资者可持续投资战略的政策制定者提供有价值的见解。加密货币市场中道德投资实践的研究仍处于发展的早期阶段。道德投资者可以从将比特币纳入其ESG股票投资组合中受益。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Ethics and Systems ECONOMICS-

CiteScore

4.40

自引率

11.10%

发文量

期刊介绍： The International Journal of Ethics and Systems (formerly named Humanomics, the International Journal of Systems and Ethics) is a multidisciplinary journal publishing peer review research on issues of ethics and morality affecting socio-scientific systems in epistemological perspectives. The journal covers diverse areas of a socio-scientific nature. The focus is on disseminating the theory and practice of morality and ethics as a system-oriented study defined by inter-causality between critical variables of given problems.