Cryptocurrencies and global sustainability: do blockchained sectors have distinctive effects?

Abstract

This study aims to present evidence for the relationship between blockchained business models and global sustainability. To that end, thirteen sectorial cryptocurrency indices are investigated by proxying global sustainability through the Solactive Global Sustainability Leaders Performance Index (GSI). Empirical analyses are conducted using DCC-FIGARCH, FIGARCH and Quantile VAR models with consideration for results of various long memory (Hurst exponent) tests. The FIGARCH modeling for mean and variance equations indicates that five cryptocurrency sectors (Logistics, Entertainment, Gaming, Metaverse and NFT) possess a relatively weak but consistent relationship with global sustainability. These sectors appear to be positively and negatively impacting the returns and volatilities of global sustainability, respectively. Additionally, the QVAR model indicates that global sustainability and respective cryptocurrency indices mainly interact during upward market trends. According to the results, utilizing blockchain technology in traditional markets may offer promising outcomes for global sustainability. The findings are encouraging for the future practices of this technology in traditional sectors. © 2023 Elsevier B.V., All rights reserved.