IDEAS home Printed from https://ideas.repec.org/a/ssi/jouesi/v11y2023i2p93-110.html
   My bibliography  Save this article

NFT-enriched smart contracts for smart circular economy models

Author

Listed:
  • Vera Gerasimova

    (Tallinn University of Technology, Estonia)

  • Gunnar Prause

    (Tallinn University of Technology, Estonia)

  • Gunnar Prause

    (University of Applied Sciences, Technology, Business and Design, Germany)

  • Thomas Hoffmann

    (Tallinn University of Technology, Estonia)

Abstract

A smart contract is an electronic transaction protocol intended to digitally facilitate, verify, or enforce the execution of the terms of underlying legal agreements. Thus, by following the traditional perception, smart contracts target reducing transaction costs, including arbitration and enforcement costs, by realizing trackable and irreversible transactions using blockchain technology for distributed databases. However, the potential of smart contracts goes far beyond cost reductions by facilitating the entrepreneurial collaboration of cross-organizational business processes. Industry 4.0 aims to create smart supply chains. Smart contracts and Non-Fungible Token (NFT) solutions can realize new smart business models in the circular economy. The recent case study from the automobile industry demonstrates how using NFT technology in the form of a digital certificate can become an integral part of smart product lifecycle management in the frame of a circular economy integrating innovative business models with smart service design concepts. By doing so, the use of NFT paves the way for dynamic and adaptable supply chains, evolving needs of stakeholders towards a sustainable and circular economy. The authors participated in research projects related to smart supply chains and circular economy. Thus, the paper discusses the question of how and to what extent smart contracting, blockchain technology, NFT solutions, and Service Design can facilitate the implementation of smart business models in the context of the circular economy. The research is based on expert interviews, surveys, and case studies from EU projects focusing on the Baltic Sea Region.

Suggested Citation

  • Vera Gerasimova & Gunnar Prause & Gunnar Prause & Thomas Hoffmann, 2023. "NFT-enriched smart contracts for smart circular economy models," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 11(2), pages 93-110, December.
    • Handle: RePEc:ssi:jouesi:v:11:y:2023:i:2:p:93-110
    DOI: 10.9770/jesi.2023.11.2(7)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/jesi/uploads/articles/42/Gerasimova_NFTenriched_smart_contracts_for_smart_circular_economy_models.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/jesi/article/1129
    Download Restriction: no
    File URL: https://libkey.io/10.9770/jesi.2023.11.2(7)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Adhami, Saman & Giudici, Giancarlo & Martinazzi, Stefano, 2018. "Why do businesses go crypto? An empirical analysis of initial coin offerings," Journal of Economics and Business, Elsevier, vol. 100(C), pages 64-75.
    2. Fleura Bardhi & Giana M. Eckhardt, 2012. "Access-Based Consumption: The Case of Car Sharing," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 39(4), pages 881-898.
    3. Sierzchula, William & Bakker, Sjoerd & Maat, Kees & van Wee, Bert, 2014. "The influence of financial incentives and other socio-economic factors on electric vehicle adoption," Energy Policy, Elsevier, vol. 68(C), pages 183-194.
    4. Alan Murray & Keith Skene & Kathryn Haynes, 2017. "The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context," Journal of Business Ethics, Springer, vol. 140(3), pages 369-380, February.
    5. Ajanovic, Amela & Haas, Reinhard, 2016. "Dissemination of electric vehicles in urban areas: Major factors for success," Energy, Elsevier, vol. 115(P2), pages 1451-1458.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xiao, Xu & Chen, Zi-Rui & Nie, Pu-Yan, 2020. "Analysis of two subsidies for EVs: Based on an expanded theoretical discrete-choice model," Energy, Elsevier, vol. 208(C).
    2. Alali, Layla & Niesten, Eva & Gagliardi, Dimitri, 2022. "The impact of UK financial incentives on the adoption of electric fleets: The moderation effect of GDP change," Transportation Research Part A: Policy and Practice, Elsevier, vol. 161(C), pages 200-220.
    3. Santos, Georgina & Davies, Huw, 2020. "Incentives for quick penetration of electric vehicles in five European countries: Perceptions from experts and stakeholders," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 326-342.
    4. Jenn, Alan & Lee, Jae Hyun & Hardman, Scott & Tal, Gil, 2020. "An in-depth examination of electric vehicle incentives: Consumer heterogeneity and changing response over time," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 97-109.
    5. Brückmann, Gracia, 2022. "The effects of policies providing information and trialling on the knowledge about and the intention to adopt new energy technologies," Energy Policy, Elsevier, vol. 167(C).
    6. Christos Karolemeas & Stefanos Tsigdinos & Panagiotis G. Tzouras & Alexandros Nikitas & Efthimios Bakogiannis, 2021. "Determining Electric Vehicle Charging Station Location Suitability: A Qualitative Study of Greek Stakeholders Employing Thematic Analysis and Analytical Hierarchy Process," Sustainability, MDPI, vol. 13(4), pages 1-21, February.
    7. Almeida Neves, Sónia & Cardoso Marques, António & Alberto Fuinhas, José, 2019. "Technological progress and other factors behind the adoption of electric vehicles: Empirical evidence for EU countries," Research in Transportation Economics, Elsevier, vol. 74(C), pages 28-39.
    8. Fanny Vanrykel & Damien Ernst & Marc Bourgeois, 2018. "Fostering Share&Charge through proper regulation," Competition and Regulation in Network Industries, , vol. 19(1-2), pages 25-52, March.
    9. Li, Yaoming & Zhang, Qi & Liu, Boyu & McLellan, Benjamin & Gao, Yuan & Tang, Yanyan, 2018. "Substitution effect of New-Energy Vehicle Credit Program and Corporate Average Fuel Consumption Regulation for Green-car Subsidy," Energy, Elsevier, vol. 152(C), pages 223-236.
    10. Kim, Moon-Koo & Oh, Jeesun & Park, Jong-Hyun & Joo, Changlim, 2018. "Perceived value and adoption intention for electric vehicles in Korea: Moderating effects of environmental traits and government supports," Energy, Elsevier, vol. 159(C), pages 799-809.
    11. Tina Wiegand & Martin Wynn, 2023. "Sustainability, the Circular Economy and Digitalisation in the German Textile and Clothing Industry," Sustainability, MDPI, vol. 15(11), pages 1-30, June.
    12. Küper, Inken & Edinger-Schons, Laura Marie, 2020. "Is sharing up for sale? Monetary exchanges in the sharing economy," Journal of Business Research, Elsevier, vol. 121(C), pages 223-234.
    13. Mechthild Donner & Anne Verniquet & Jan Broeze & Katrin Kayser & Hugo de Vries, 2021. "Critical success and risk factors for circular business models valorising agricultural waste and by-products," Post-Print hal-03004851, HAL.
    14. Ferdinand Thies & Sören Wallbach & Michael Wessel & Markus Besler & Alexander Benlian, 2022. "Initial coin offerings and the cryptocurrency hype - the moderating role of exogenous and endogenous signals," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1691-1705, September.
    15. Ulrike Illmann & Jan Kluge, 2021. "Half Full or Half Empty? On the Importance of Nationwide Public Charging Infrastructure for the Development of Electromobility," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 28(05), pages 10-17, October.
    16. Gnann, Till & Stephens, Thomas S. & Lin, Zhenhong & Plötz, Patrick & Liu, Changzheng & Brokate, Jens, 2018. "What drives the market for plug-in electric vehicles? - A review of international PEV market diffusion models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 158-164.
    17. Magnus Schückes & Tobias Gutmann, 2021. "Why do startups pursue initial coin offerings (ICOs)? The role of economic drivers and social identity on funding choice," Small Business Economics, Springer, vol. 57(2), pages 1027-1052, August.
    18. Shih‐Chu Chou & Zhe‐An Li & Tawei Wang & Ju‐Chun Yen, 2023. "How the quality of initial coin offering white papers influences fundraising: Using security token offerings white papers as a benchmark," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 30(1), pages 3-18, January.
    19. Jose María Martín‐Martín & María S. Ostos‐Rey & Jose A. Salinas‐Fernández, 2019. "Why Regulation Is Needed in Emerging Markets in the Tourism Sector," American Journal of Economics and Sociology, Wiley Blackwell, vol. 78(1), pages 225-254, January.
    20. Asuamah Yeboah, Samuel, 2023. "Sustaining Change: Unravelling the Socio-cultural Threads of Sustainable Consumption," MPRA Paper 117981, University Library of Munich, Germany, revised 10 Jun 2023.

    More about this item

    Keywords

    smart contracts; Non-Fungible Token (NFT); smart supply chains; service design; business models; circular economy;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssi:jouesi:v:11:y:2023:i:2:p:93-110. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuela Tvaronaviciene (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.