IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v227y2026ics1364032125011487.html

A review of the carbon trading market with large-scale user participation based on blockchain

Author

Listed:
  • Chen, Ziyu
  • Zhu, Jizhong
  • Liu, Yun
  • Dong, Zhaoyang
  • Xu, Yan

Abstract

In order to promote the realization of carbon emission reduction targets, it is necessary to develop clean energy such as photovoltaic/wind power and limit greenhouse gas emissions, mainly carbon dioxide. In this context, the carbon trading market for large-scale users is summarized. Firstly, the background of carbon emission rights trading is outlined and the characteristics of various trading mechanisms are analyzed, along with their connections and differences. Then, the carbon trading technology is reviewed, involving the mathematical models and operating logic of the pure carbon market and the electricity-carbon coupled market, the distributed clearing solution strategies and methods, and the performance of blockchain-based carbon trading systems. Finally, this review looks forward to the development direction of carbon trading market mechanism construction, distributed clearing solution methods and blockchain-based carbon trading. Among them, solutions and measures are proposed to address issues such as repeated calculation of environmental value, blocked transmission of electricity and carbon prices, and limited scale of participation. A carbon market clearing solution system considering carbon emission flow constraints is constructed. The technical bottlenecks and future development trends of carbon trading based on blockchain technology are summarized. This work can help achieve reliable and efficient development of the carbon trading market.

Suggested Citation

  • Chen, Ziyu & Zhu, Jizhong & Liu, Yun & Dong, Zhaoyang & Xu, Yan, 2026. "A review of the carbon trading market with large-scale user participation based on blockchain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 227(C).
    • Handle: RePEc:eee:rensus:v:227:y:2026:i:c:s1364032125011487
    DOI: 10.1016/j.rser.2025.116475
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032125011487
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2025.116475?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
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Lin, Chun-Cheng & Shen, Hong-Yu & Peng, Yi-Chun & Liu, Wan-Yu, 2025. "Residential energy considering renewable portfolio standards and tradable green certificates," Renewable and Sustainable Energy Reviews, Elsevier, vol. 207(C).
    2. Chai, Shanglei & Huo, Wenjing & Li, Qiang & Ji, Qiang & Shi, Xunpeng, 2025. "Effects of carbon tax on energy transition, emissions and economy amid technological progress," Applied Energy, Elsevier, vol. 377(PC).
    3. Zhang, Yongji & Lan, Minghui & Zhao, Yapu & Su, Zhi & Hao, Yu & Du, Heran, 2024. "Regional carbon emission pressure and corporate green innovation," Applied Energy, Elsevier, vol. 360(C).
    4. Lu, Youshui & Li, Yue & Tang, Xiaojun & Cai, Bowei & Wang, Hua & Liu, Lei & Wan, Shaohua & Yu, Keping, 2022. "STRICTs: A Blockchain-enabled Smart Emission Cap Restrictive and Carbon Permit Trading System," Applied Energy, Elsevier, vol. 313(C).
    5. Wang, Beibei & Xu, Lun & Wang, Jialei, 2023. "A privacy-preserving trading strategy for blockchain-based P2P electricity transactions," Applied Energy, Elsevier, vol. 335(C).
    6. Armghan, Hammad & Xu, Yinliang & Sun, Hongbin & Ali, Naghmash & Liu, Jiajin, 2024. "Event-triggered multi-time scale control and low carbon operation for electric-hydrogen DC microgrid," Applied Energy, Elsevier, vol. 355(C).
    7. Zhang, Liming & Zhan, Juan & Sun, Helin & Lu, Qin, 2025. "The impact of the government's new energy storage policy on carbon emission reduction of enterprises – Evidence from China," Applied Energy, Elsevier, vol. 399(C).
    8. Zhou, Xing & Xu, Jianze & Zhang, Fenglan & Ma, Pingping & Jin, Yi, 2025. "The logic of policies for energy price regulation in the future: A synergistic developmental perspective based on energy and carbon markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 222(C).
    9. Babaei, Ardavan & Babaee Tirkolaee, Erfan & Ali, Sadia Samar, 2025. "Assessing the viability of blockchain technology in renewable energy supply chains: A consolidation framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 212(C).
    10. Zhou, Tianmin & Chen, Jiamin & Xu, Xuancong & Ou, Zuhong & Yin, Hao & Luo, Jianqiang & Meng, Anbo, 2023. "A novel multi-agent based crisscross algorithm with hybrid neighboring topology for combined heat and power economic dispatch," Applied Energy, Elsevier, vol. 342(C).
    11. Nian, Hongyu & Wang, Huanhuan & Zhang, Zhiqiang, 2025. "Carbon credit and credibility in lawsuit: Evidence from CCER firms in China," Energy Economics, Elsevier, vol. 146(C).
    12. Lv, Xiaoyan & Li, Xingmei & Jia, Dongqing & Shen, Zhong, 2025. "Collaborative optimization for multipath coal-fired power project transition and renewable energy power project portfolio selection considering capacity payment and CCER," Applied Energy, Elsevier, vol. 381(C).
    13. Jiang, Meiqin & Che, Jinxing & Li, Shuying & Hu, Kun & Xu, Yifan, 2025. "Incorporating key features from structured and unstructured data for enhanced carbon trading price forecasting with interpretability analysis," Applied Energy, Elsevier, vol. 382(C).
    14. Yu, Heyang & Zhang, Jingchen & Ma, Junchao & Chen, Changyu & Geng, Guangchao & Jiang, Quanyuan, 2023. "Privacy-preserving demand response of aggregated residential load," Applied Energy, Elsevier, vol. 339(C).
    15. Wang, Yue & Wang, Bangjun & Cui, Linyu, 2025. "Applauded not acclaimed? Implementation effectiveness of the tradable green certificate in renewable energy policy of China," Energy Economics, Elsevier, vol. 145(C).
    16. Wu, Jiahao & Zhao, Yuhuan & Fan, Shunan & Zhao, Ziyi & Zuo, Sumin & Wang, Jiayang, 2025. "Study on the diffusion of China Certified Emission Reduction scheme under carbon trading mechanism: Based on the tripartite evolutionary game model," Energy, Elsevier, vol. 322(C).
    17. Zhongyu Ma & Songfeng Cai & Weifeng Ye & Alun Gu, 2019. "Linking Emissions Trading Schemes: Economic Valuation of a Joint China–Japan–Korea Carbon Market," Sustainability, MDPI, vol. 11(19), pages 1-12, September.
    18. Zhu, Jizhong & Zhou, Jialin & Zhang, Di & Gan, Wei & Sun, Chao, 2025. "Trusted low-carbon optimized economic dispatch for integrated energy industrial park based on blockchain technology," Applied Energy, Elsevier, vol. 381(C).
    19. Wang, Rutian & Wen, Xiangyun & Wang, Xiuyun & Fu, Yanbo & Zhang, Yu, 2022. "Low carbon optimal operation of integrated energy system based on carbon capture technology, LCA carbon emissions and ladder-type carbon trading," Applied Energy, Elsevier, vol. 311(C).
    20. Vieira, Guilherme & Zhang, Jie, 2021. "Peer-to-peer energy trading in a microgrid leveraged by smart contracts," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    21. Yu, Vincent F. & Le, Thi Huynh Anh & Gupta, Jatinder N.D., 2025. "Sustainable microgrids design with uncertainties and blockchain-based peer-to-peer energy trading," Renewable and Sustainable Energy Reviews, Elsevier, vol. 216(C).
    22. Shi, Zhengkun & Yang, Yongbiao & Xu, Qingshan & Wu, Chenyu & Hua, Kui, 2023. "A low-carbon economic dispatch for integrated energy systems with CCUS considering multi-time-scale allocation of carbon allowance," Applied Energy, Elsevier, vol. 351(C).
    23. Zhang, Shaomin & Li, Jiatao & Wang, Baoyi, 2025. "A cross-chain electricity transaction scheme for multi-microgrid with user privacy protection and regulation," Applied Energy, Elsevier, vol. 401(PB).
    24. Cao, Jinye & Xu, Chunlei & Siqin, Zhuoya & Yu, Miao & Diao, Ruisheng, 2025. "Scenario-driven distributionally robust optimization model for a rural virtual power plant considering flexible energy-carbon-green certificate trading," Applied Energy, Elsevier, vol. 379(C).
    25. Cali, Umit & Lee, Annabelle & Hayes, Barry & Lima, Claudio & Sebastian-Cardenas, D. Jonathan & Flynn, David & Kantar, Emre & Rahimi, Farrokh & Thu, Kaung Si & Pasetti, Marco & Dynge, Marthe Fogstad & , 2025. "A comprehensive academic and industrial survey of blockchain technology for the energy sector using fuzzy Einstein decision-making," Renewable and Sustainable Energy Reviews, Elsevier, vol. 222(C).
    26. Liu, Lili & Feng, Tiantian & Li, Yan & Zhong, Cheng & Wang, Haoran & Xuan, Jiadong, 2025. "Green power-TGC-CET conversion mechanism design, dynamic evaluation and selection: Enhancing multi-market synergy," Energy Economics, Elsevier, vol. 149(C).
    27. Chang, Kai & Ge, Fangping & Zhang, Chao & Wang, Weihong, 2018. "The dynamic linkage effect between energy and emissions allowances price for regional emissions trading scheme pilots in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 98(C), pages 415-425.
    28. Zheng, Xiaogui & Huang, Guohe & Liu, Lirong & Zhang, Xiaoyue, 2025. "Factorial equilibrium analyses for socio-economic implications of emission trading," Renewable and Sustainable Energy Reviews, Elsevier, vol. 214(C).
    29. Huang, Wenyang & Zhao, Jianyu & Wang, Xiaokang, 2024. "Model-driven multimodal LSTM-CNN for unbiased structural forecasting of European Union allowances open-high-low-close price," Energy Economics, Elsevier, vol. 132(C).
    30. Lin, Guixu & Jian, Jie & Zhang, Haoran & Guo, Zhiling & Ji, Haoran & Song, Xuan & Yan, Jinyue, 2025. "A review of blockchain consensus mechanisms for Peer-to-Peer electricity trading," Renewable and Sustainable Energy Reviews, Elsevier, vol. 222(C).
    31. Wang, Benke & Li, Chunhua & Ban, Yongshuang & Zhao, Zeming & Wang, Zengxu, 2025. "A multi-market equilibrium model considering the carbon-green certificate mutual recognition trading mechanism under the electricity market," Energy, Elsevier, vol. 330(C).
    32. Raphael Calel, 2013. "Carbon markets: a historical overview," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 4(2), pages 107-119, March.
    33. Yan, Jingchi, 2021. "The impact of climate policy on fossil fuel consumption: Evidence from the Regional Greenhouse Gas Initiative (RGGI)," Energy Economics, Elsevier, vol. 100(C).
    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. Du, Pengcheng & Liu, Tianhao & Zhang, Dongdong & Du, Yu & Kong, Fannie & Huang, Chao & Zhao, Haisen & Goh, Hui Hwang, 2026. "Electricity–carbon coupling markets: mechanisms, models and digital enablers for low-carbon power system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 230(C).
    2. Lin, Wen-Ting & Guo, Qitao & Jia, Tao & Li, Chaojie & Zhou, Xiaojun & Li, Jueyou & Ming, Tingzhen, 2026. "Hydrogen–energy–carbon coupled pricing for integrated energy systems: Stackelberg game and robust demand response under renewable uncertainty," Renewable Energy, Elsevier, vol. 260(C).
    3. Tan, Mao & Jiang, Hongwei & Kuang, Yi & Li, Kang & Wang, Rui & Li, Zibin, 2025. "Electricity–carbon dual response for energy-intensive enterprise: A co-optimization approach," Renewable Energy, Elsevier, vol. 251(C).
    4. Zhu, Lin & Ji, Xiaoqin & Yang, Dechang & Dehghanian, Payman & Zhang, Lijun, 2026. "Optimized scheduling strategies for integrated energy systems in agricultural parks with near-zero carbon emissions," Applied Energy, Elsevier, vol. 403(PA).
    5. Shi, Lin & Li, Bingkang & Zhao, Huiru & Song, Minghao & Liu, Lintong & Chen, Ruijie & Wang, Yuwei, 2026. "Economic-environmental equilibrium operation strategy for renewable driven and hydrogen involved multi-energy system considering source-load uncertainties," Energy, Elsevier, vol. 342(C).
    6. Xiong, Xiaoping & Tang, Jun, 2026. "Low-carbon economic scheduling of rural virtual power plants considering carbon-green hydrogen certificates coupling mechanisms and farmers' cognitive preferences," Energy, Elsevier, vol. 342(C).
    7. Zhu, Jizhong & Zhou, Jialin & Zhang, Di & Gan, Wei & Sun, Chao, 2025. "Trusted low-carbon optimized economic dispatch for integrated energy industrial park based on blockchain technology," Applied Energy, Elsevier, vol. 381(C).
    8. Wang, Yue & Wang, Bangjun & Cui, Linyu, 2026. "Multi-agent collaboration-driven energy structure transition: A quadripartite evolutionary game analysis framework integrating carbon, electricity, and green certificate markets," Energy Economics, Elsevier, vol. 153(C).
    9. Huang, Wenyang & Wang, Yizhi, 2024. "Identifying price bubbles in global carbon markets: Evidence from the SADF test, GSADF test and LPPLS method," Energy Economics, Elsevier, vol. 134(C).
    10. Fangyi Li & Zhaoyang Ye & Xilin Xiao & Dawei Ma, 2019. "Environmental Benefits of Stock Evolution of Coal-Fired Power Generators in China," Sustainability, MDPI, vol. 11(19), pages 1-17, October.
    11. Aikaterini Papapostolou & Ioanna Andreoulaki & Filippos Anagnostopoulos & Sokratis Divolis & Harris Niavis & Sokratis Vavilis & Vangelis Marinakis, 2025. "Innovative Business Models Towards Sustainable Energy Development: Assessing Benefits, Risks, and Optimal Approaches of Blockchain Exploitation in the Energy Transition," Energies, MDPI, vol. 18(15), pages 1-45, August.
    12. Zhou, Yuekuan & Lund, Peter D., 2023. "Peer-to-peer energy sharing and trading of renewable energy in smart communities ─ trading pricing models, decision-making and agent-based collaboration," Renewable Energy, Elsevier, vol. 207(C), pages 177-193.
    13. Jiaqi Wu & Qian Zhang & Yangdong Lu & Tianxi Qin & Jianyong Bai, 2023. "Source-Load Coordinated Low-Carbon Economic Dispatch of Microgrid including Electric Vehicles," Sustainability, MDPI, vol. 15(21), pages 1-21, October.
    14. Zhang, Zhonglian & Yang, Xiaohui & Li, Moxuan & Deng, Fuwei & Xiao, Riying & Mei, Linghao & Hu, Zecheng, 2023. "Optimal configuration of improved dynamic carbon neutral energy systems based on hybrid energy storage and market incentives," Energy, Elsevier, vol. 284(C).
    15. Tu, Yubo & Hu, Lingyu & Hua, Xianglu & Li, Haohui, 2025. "Supply chain stability and corporate green technology innovation," International Review of Economics & Finance, Elsevier, vol. 97(C).
    16. Qingzhou Wang & Mengfan Li & Yuning Zhang & Yanan Kang, 2025. "Green Port Collection and Distribution System in Low-Carbon Development: Scenario-Based System Dynamics," Sustainability, MDPI, vol. 17(14), pages 1-23, July.
    17. Adekoya, Oluwasegun B. & Oliyide, Johnson A. & Noman, Ambreen, 2021. "The volatility connectedness of the EU carbon market with commodity and financial markets in time- and frequency-domain: The role of the U.S. economic policy uncertainty," Resources Policy, Elsevier, vol. 74(C).
    18. Lili Liu & Tiantian Feng & Cheng Zhong & Mingli Cui & Haoran Wang, 2025. "Synergy pathway innovation of carbon emission trading, tradable green certificate and green power trading policies: achieving China’s dual carbon goals," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-28, December.
    19. Botelho, D.F. & de Oliveira, L.W. & Dias, B.H. & Soares, T.A. & Moraes, C.A., 2022. "Integrated prosumers–DSO approach applied in peer-to-peer energy and reserve tradings considering network constraints," Applied Energy, Elsevier, vol. 317(C).
    20. Jiyong Li & Zeyi Hua & Lin Tian & Peiwen Chen & Hao Dong, 2024. "Optimal Capacity Allocation for Life Cycle Multiobjective Integrated Energy Systems Considering Capacity Tariffs and Eco-Indicator 99," Sustainability, MDPI, vol. 16(20), pages 1-22, October.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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:eee:rensus:v:227:y:2026:i:c:s1364032125011487. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    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.