Scope
In (Hebous and Vernon-Lin, 2024) explores the environmental impact of cryptocurrency mining, particularly the carbon emissions resulting from the energy-intensive proof-of-work protocol. For that, the authors introduce the concept of cryptocarbon to quantify the carbon emissions caused by the cryptomining activities. They focus on estimating the sufficient corrective tax to address the negative externalities of cryptocurrency, mining, proposing a tax on electricity in mining. The study concludes discusses different tax levels based on carbon emissions and electricity sources, estimating the impact of taxes on reducing CO2 emissions from cryptomining.
Summary
This study computes the environmental cost of cryptocurrency mining, noting that cryptomining contributed approximately 0.33% of global CO2 emissions in 2022. Notably, this figure could increase if crypto prices rise, and energy efficiency remains low. To cope with thin issue the authors estimate that a corrective tax of USD 0.045 per kWh on electricity used by crypton miners, could reduce emissions by 45%. The study also considers country-wise specific variations in emission intensities and air pollution costs, suggesting the tax could rise to USD 0.087 per kWh.
Relevance for EXIGENCE
Hebous and Vernon-Lin‘s work focuses on the environmental impact of computational processes, such as cryptocurrency mining, and its exploration of corrective taxation ties closely with EXIGENCE’s goals of reducing energy consumption in ICT. The paper’s approach to taxing energy-intensive processes like crypton mining could provide insights into how EXIGENCE could similarly regulate and optimise energy usage, potentially exploring carbon credits or incentives to lower energy footprints in AI and ML fields.
- Hebous, and N. Vernon-Lin, “Cryptocarbon: How Much Is the Corrective Tax?”, Energy Economics, vol. 138, p. 107827, 2024.
