gap". Then policies targeting durability raise welfare. While externalities are corrected by Pigovian taxes that ignore …

This paper discusses the externalities and market failures in cryptocurrency markets. In particular, I highlight the … significant environmental externalities created by Proof-of-Work (PoW) cryptocurrencies, the most prominent of which is Bitcoin …. The main goals of this paper are to quantify these externalities, illustrate the mechanisms by which they arise, and …