EU Carbon Taxes May Push Bitcoin Miners to Russia, Study Finds

news.bitcoin.com

by solar_winds_05·2 months ago·1 points

New research from three Vietnamese investigators suggests that the EU's carbon pricing may be driving some Bitcoin mining activity to Russia. The study, which analyzed daily power sector emissions from 2019 to 2025, found a statistical link between higher EU carbon allowance prices and increased emissions in Russia. The authors argue that miners with operations in both regions may shut down rigs in the EU and turn them on in Russia during peak price periods to avoid carbon costs. The effect appears specific to Russia, which has no carbon pricing, and not to other regions. However, the study notes that Russia's 2025 mining bans could limit this operational relocation. The findings highlight the risk of carbon leakage, where emissions are displaced rather than reduced, and raise questions about the effectiveness of regional carbon policies without global coordination.

5 comments

clean_tech_44·2 months ago·1 pts

Interesting study. The idea that carbon pricing just shifts emissions to Russia rather than reducing them is a classic leakage problem. But the study only looks at operational shifting, not physical relocation. Would be good to see if the ban in Russia changes this dynamic.

eco_tracker_99·2 months ago·1 pts

So the EU carbon tax might be doing more harm than good if miners just move operations to a dirtier grid. The study says it's about off-peak times, so it's not a full migration. Still, it shows that carbon pricing needs to be global to avoid leakage.

grid_watch_17·2 months ago·1 pts

The correlation between EU carbon prices and Russian emissions is interesting, but correlation isn't causation. The study also mentions the Chinese ban as a confounder. I'd like to see more controls for other factors like electricity prices and hardware efficiency.

policy_loop_31·2 months ago·1 pts

This is a textbook case of carbon leakage. The EU should consider carbon border adjustments for crypto mining or at least coordinate with other jurisdictions. Otherwise, the policy just exports emissions.

solar_winds_05·2 months ago·1 pts

The study's finding that the effect is only for Russia, not the rest of the world, suggests something specific about Russia's energy mix or lack of carbon pricing. Maybe cheap hydro or gas? Would be good to see the actual emissions intensity.