Digital Innovation and Clear Energy: A Study on Environmental Taxation of Crypto Assets

¹ Faculty of Law, Universitas Bangka Belitung, Bangka Belitung, Indonesia
² Faculty of Law, Universitas Muhammadiyah Yogyakarta, Yogyakarta, Indonesia
³ Faculty of Law, Universität zu Köln, Köln, Germany

^* Corresponding Author: putrianggia@umy.ac.id

Abstract

The development of digital technology has created new opportunities to support sustainable environmental policies. One prominent innovation is the use of blockchain technology, which, despite offering efficiency and transparency, raises concerns about energy consumption and environmental impact and particularly in Proof-of-Work (PoW) systems. On the other hand, fiscal instruments such as green taxes can be used to encourage the adoption of environmentally friendly technologies and mitigate negative externalities. This study aims to analyze the relationship between digital innovation and fiscal policy in promoting energy efficiency and implementing green policies. Using a descriptive qualitative approach and literature review, this paper examines blockchain’s contribution to energy efficiency and best practices from several countries. The findings indicate that integrating environmental taxation with digital technologies, especially in the cryptocurrency sector, holds significant potential to support the clean energy transition and enhance environmental governance in the digital era.