Believe it or not, Bitcoin mining might actually *lower* total carbon emissions for the whole economy.
March 20, 2026
Original Paper
<p>Bitcoin Mining (and Maybe AI Training) for Carbon Emission Reduction</p>
SSRN · 6316042
The Takeaway
Unlike other industries, Bitcoin miners can turn their power off instantly when energy demand peaks. This allows them to act as a financial 'shock absorber' for wind and solar plants, making renewable energy more profitable and reducing the need for dirty 'peaker' power plants that usually fill gaps in supply.
From the abstract
Although Bitcoin mining consumes a huge amount of electricity, does it necessarily translate into increased carbon emissions? In an analytical contracting model featuring endogenous renewable energy adoption decisions, we show that with appropriate electricity price policies, the high electricity demand from Bitcoin mining may actually lower the total carbon emission in the entire economy. A key intuition is that, unlike most other electricity uses, the intensity of Bitcoin mining can be elastic