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The development of energy blockchain and its implications for China's energy sector

Author

Listed:
  • Zhu, Shuai
  • Song, Malin
  • Lim, Ming Kim
  • Wang, Jianlin
  • Zhao, Jiajia

Abstract

With technology progressing and the decreasing cost of renewable energy, consumers require energy supply to be smarter, cleaner, and more sustainable than before. By providing a decentralized trading mechanism, blockchain technology can facilitate sustainable energy consumption and achieve a circular economy. This study analyzes how China can employ blockchain technology to reform its energy sector. We survey the progress of blockchain technology in the energy sector and explore typical cases of energy blockchains in the world. We discuss the advantages and disadvantages of applying blockchain to China's energy sector. China's monopoly market structure in energy supply impedes the application of blockchain technology, but the expansion of clean energy provides a huge opportunity for it. Although China's technological level is lagging, the biggest obstacle is not technology but rather policy. We conclude that China should loosen its regulatory environment, amend the relevant laws, and balance the conflict between management and innovation.

Suggested Citation

  • Zhu, Shuai & Song, Malin & Lim, Ming Kim & Wang, Jianlin & Zhao, Jiajia, 2020. "The development of energy blockchain and its implications for China's energy sector," Resources Policy, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:jrpoli:v:66:y:2020:i:c:s0301420719307391
    DOI: 10.1016/j.resourpol.2020.101595
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