A Comparative Study On Cointegration Analysis Of Green Crypto Currencies And BRICS Sustainable Indices

Abstract

An innovative junction between digital finance and ecological consciousness is presented by the emergence of green cryptocurrencies, which are propelled by environmental concerns and sustainability activities. In order to address social and environmental issues, the BRICS countries—Brazil, Russia, India, China, and South Africa—have been actively creating sustainable investment frameworks in parallel. The purpose of this study is to investigate the relationship between green cryptocurrencies and the BRICS Sustainable Indices through a comparative analysis utilizing Cointegration techniques. The study investigates the long-term equilibrium relationship between the two sets of variables using time-series data, providing insight into possible co-movements and interdependencies. This study uses Cointegration analysis to investigate if sustainable indices and green cryptocurrencies show similar trajectories, indicating possible alignment in investor preferences or fundamental market dynamics. In addition, the study looks for directionality and causal links between the variables to determine whether green cryptocurrency uptake and performance are influenced by sustainable investment trends or vice versa. In order to thoroughly examine the data, the study uses sophisticated econometric methods such vector error correction models (VECM) and Johansen Cointegration tests. In order to precisely capture the dynamics of green cryptocurrency marketplaces and BRICS sustainable investment trends, the study makes use of extensive datasets covering pertinent time periods. This research offers insights into the changing landscape of environmentally conscious investment practices and adds to the expanding body of literature at the nexus of sustainable finance and cryptocurrency markets through its comparative methodology. The study's conclusions have consequences for stakeholders, investors, and policymakers who want to know how sustainable development programs and green finance instruments interact in emerging economies. The ultimate goal of this research is to support the incorporation of environmental factors into investment strategies in the sustainable finance and digital asset markets, as well as to educate strategic decision-making processes.