IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v173y2021ics0040162521005576.html
   My bibliography  Save this article

A comprehensive hierarchical blockchain system for carbon emission trading utilizing blockchain of things and smart contract

Author

Listed:
  • Sadawi, Alia Al
  • Madani, Batool
  • Saboor, Sara
  • Ndiaye, Malick
  • Abu-Lebdeh, Ghassan

Abstract

Climate change is a major issue that has disastrous implications on the environment, which, if continued, will cause severe consequences. One of the leading causes of climate change is the emissions of harmful gases, particularly CO2. In 1997, the Kyoto protocol was signed by 192 countries, creating a system that monetizes CO2 emissions with an aim to control them. Most countries signed a carbon trading scheme, but the scheme fell short of its goals due to manipulation, lack of integrity, and multiple other challenges. This work presents an improved blockchain-based approach to achieve the objective of monitoring the reduction of carbon emissions. Blockchain's distinct features such as security, immutability, transparency, traceability, and trust, make it a robust and reliable solution for the carbon trading market. Previous Blockchain-based proposals were not comprehensive, practical, applicable, or efficient enough to form an effective solution. This research addresses the current gaps and proposes a comprehensive three-stage hierarchical blockchain framework that employs smart contracts in Blockchain of Things (BoT) to ensure integrity in the system and reach fair trade status that favors the environment over companies' cost reductions and profit-making. The result is an optimized carbon emission trading framework, fully transparent with automated trading and control mechanisms.

Suggested Citation

  • Sadawi, Alia Al & Madani, Batool & Saboor, Sara & Ndiaye, Malick & Abu-Lebdeh, Ghassan, 2021. "A comprehensive hierarchical blockchain system for carbon emission trading utilizing blockchain of things and smart contract," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    • Handle: RePEc:eee:tefoso:v:173:y:2021:i:c:s0040162521005576
    DOI: 10.1016/j.techfore.2021.121124
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162521005576
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2021.121124?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Wang, Yingli & Singgih, Meita & Wang, Jingyao & Rit, Mihaela, 2019. "Making sense of blockchain technology: How will it transform supply chains?," International Journal of Production Economics, Elsevier, vol. 211(C), pages 221-236.
    2. Daeheon Choi & Chune Young Chung & Thou Seyha & Jason Young, 2020. "Factors Affecting Organizations’ Resistance to the Adoption of Blockchain Technology in Supply Networks," Sustainability, MDPI, vol. 12(21), pages 1-37, October.
    3. Raphael Calel, 2011. "Climate change and carbon markets: a panoramic history," GRI Working Papers 52, Grantham Research Institute on Climate Change and the Environment.
    4. Khaqqi, Khamila Nurul & Sikorski, Janusz J. & Hadinoto, Kunn & Kraft, Markus, 2018. "Incorporating seller/buyer reputation-based system in blockchain-enabled emission trading application," Applied Energy, Elsevier, vol. 209(C), pages 8-19.
    5. Bailu Fu & Zhan Shu & Xiaogang Liu, 2018. "Blockchain Enhanced Emission Trading Framework in Fashion Apparel Manufacturing Industry," Sustainability, MDPI, vol. 10(4), pages 1-19, April.
    6. repec:dau:papers:123456789/10174 is not listed on IDEAS
    7. Ahl, A. & Yarime, M. & Goto, M. & Chopra, Shauhrat S. & Kumar, Nallapaneni Manoj. & Tanaka, K. & Sagawa, D., 2020. "Exploring blockchain for the energy transition: Opportunities and challenges based on a case study in Japan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 117(C).
    8. Warwick J. McKibbin & Martin T. Ross & Robert Shackleton & Peter J. Wilcoxen, 1999. "Emissions Trading, Capital Flows and the Kyoto Protocol," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 287-333.
    9. Morkunas, Vida J. & Paschen, Jeannette & Boon, Edward, 2019. "How blockchain technologies impact your business model," Business Horizons, Elsevier, vol. 62(3), pages 295-306.
    10. Liobikienė, Genovaitė & Butkus, Mindaugas, 2019. "Scale, composition, and technique effects through which the economic growth, foreign direct investment, urbanization, and trade affect greenhouse gas emissions," Renewable Energy, Elsevier, vol. 132(C), pages 1310-1322.
    11. Tamazian, Artur & Chousa, Juan Piñeiro & Vadlamannati, Krishna Chaitanya, 2009. "Does higher economic and financial development lead to environmental degradation: Evidence from BRIC countries," Energy Policy, Elsevier, vol. 37(1), pages 246-253, January.
    12. Woerdman, Edwin, 2001. "Emissions trading and transaction costs: analyzing the flaws in the discussion," Ecological Economics, Elsevier, vol. 38(2), pages 293-304, August.
    13. Paolo Tasca & Adam Hayes & Shaowen Liu, 2018. "The evolution of the bitcoin economy," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 19(2), pages 94-126, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qin, Meng & Zhang, Xiaojing & Li, Yameng & Badarcea, Roxana Maria, 2023. "Blockchain market and green finance: The enablers of carbon neutrality in China," Energy Economics, Elsevier, vol. 118(C).
    2. Amin Shokri & Ali Shokri & Dean White & Richard Gelski & Yosse Goldberg & Stephen Harrison & Taha Hossein Rashidi, 2022. "EnviroCoin: A Holistic, Blockchain Empowered, Consensus-Based Carbon Saving Unit Ecosystem," Sustainability, MDPI, vol. 14(12), pages 1-21, June.
    3. 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).
    4. Wang, Yun & Xie, Haipeng & Sun, Xiaotian & Tang, Lingfeng & Bie, Zhaohong, 2022. "A cross-chain enabled day-ahead collaborative power-carbon-TGC market," Energy, Elsevier, vol. 258(C).
    5. Yang, Xiaohui & Zhang, Zhonglian & Mei, Linghao & Wang, Xiaopeng & Deng, Yeheng & Wei, Shi & Liu, Xiaoping, 2023. "Optimal configuration of improved integrated energy system based on stepped carbon penalty response and improved power to gas," Energy, Elsevier, vol. 263(PD).
    6. Qin, Meng & Su, Chi-Wei & Lobonţ, Oana-Ramona & Umar, Muhammad, 2023. "Blockchain: A carbon-neutral facilitator or an environmental destroyer?," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 604-615.
    7. Chung, Kenneth Hsien Yung & Li, Dan & Adriaens, Peter, 2023. "Technology-enabled financing of sustainable infrastructure: A case for blockchains and decentralized oracle networks," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    8. Li, Yan & Feng, Tian-tian & Liu, Li-li & Zhang, Meng-xi, 2023. "How do the electricity market and carbon market interact and achieve integrated development?--A bibliometric-based review," Energy, Elsevier, vol. 265(C).
    9. Renjie Zhang & Hsingwei Tai & Kuotai Cheng & Huizhong Dong & Wenhui Liu & Junjie Hou, 2022. "Carbon Emission Efficiency Network: Evolutionary Game and Sensitivity Analysis between Differentiated Efficiency Groups and Local Governments," Sustainability, MDPI, vol. 14(4), pages 1-19, February.
    10. Zhang, Wei & Li, Guoxiang & Guo, Fanyong, 2022. "Does carbon emissions trading promote green technology innovation in China?," Applied Energy, Elsevier, vol. 315(C).

    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. Kouhizadeh, Mahtab & Saberi, Sara & Sarkis, Joseph, 2021. "Blockchain technology and the sustainable supply chain: Theoretically exploring adoption barriers," International Journal of Production Economics, Elsevier, vol. 231(C).
    2. Bai, Chunguang & Sarkis, Joseph, 2022. "A critical review of formal analytical modeling for blockchain technology in production, operations, and supply chains: Harnessing progress for future potential," International Journal of Production Economics, Elsevier, vol. 250(C).
    3. Antonella Moretto & Laura Macchion, 2022. "Drivers, barriers and supply chain variables influencing the adoption of the blockchain to support traceability along fashion supply chains," Operations Management Research, Springer, vol. 15(3), pages 1470-1489, December.
    4. Vineet Paliwal & Shalini Chandra & Suneel Sharma, 2020. "Blockchain Technology for Sustainable Supply Chain Management: A Systematic Literature Review and a Classification Framework," Sustainability, MDPI, vol. 12(18), pages 1-39, September.
    5. Su, Dan & Zhang, Lijun & Peng, Hua & Saeidi, Parvaneh & Tirkolaee, Erfan Babaee, 2023. "Technical challenges of blockchain technology for sustainable manufacturing paradigm in Industry 4.0 era using a fuzzy decision support system," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    6. Golinucci, Nicolò & Tonini, Francesco & Rocco, Matteo Vincenzo & Colombo, Emanuela, 2023. "Towards BitCO2, an individual consumption-based carbon emission reduction mechanism," Energy Policy, Elsevier, vol. 183(C).
    7. Kirti Nayal & Rakesh D. Raut & Balkrishna E. Narkhede & Pragati Priyadarshinee & Gajanan B. Panchal & Vidyadhar V. Gedam, 2023. "Antecedents for blockchain technology-enabled sustainable agriculture supply chain," Annals of Operations Research, Springer, vol. 327(1), pages 293-337, August.
    8. Özden Tozanlı & Elif Kongar & Surendra M. Gupta, 2020. "Evaluation of Waste Electronic Product Trade-in Strategies in Predictive Twin Disassembly Systems in the Era of Blockchain," Sustainability, MDPI, vol. 12(13), pages 1-33, July.
    9. Thomas Puschmann & Christian Hugo Hoffmann & Valentyn Khmarskyi, 2020. "How Green FinTech Can Alleviate the Impact of Climate Change—The Case of Switzerland," Sustainability, MDPI, vol. 12(24), pages 1-30, December.
    10. Silvia H. Bonilla & Helton R. O. Silva & Marcia Terra da Silva & Rodrigo Franco Gonçalves & José B. Sacomano, 2018. "Industry 4.0 and Sustainability Implications: A Scenario-Based Analysis of the Impacts and Challenges," Sustainability, MDPI, vol. 10(10), pages 1-24, October.
    11. Niloofar Etemadi & Pieter Van Gelder & Fernanda Strozzi, 2021. "An ISM Modeling of Barriers for Blockchain/Distributed Ledger Technology Adoption in Supply Chains towards Cybersecurity," Sustainability, MDPI, vol. 13(9), pages 1-28, April.
    12. Yildizbasi, Abdullah, 2021. "Blockchain and renewable energy: Integration challenges in circular economy era," Renewable Energy, Elsevier, vol. 176(C), pages 183-197.
    13. Kimani, Danson & Adams, Kweku & Attah-Boakye, Rexford & Ullah, Subhan & Frecknall-Hughes, Jane & Kim, Ja, 2020. "Blockchain, business and the fourth industrial revolution: Whence, whither, wherefore and how?," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    14. Maroufkhani, Parisa & Desouza, Kevin C. & Perrons, Robert K. & Iranmanesh, Mohammad, 2022. "Digital transformation in the resource and energy sectors: A systematic review," Resources Policy, Elsevier, vol. 76(C).
    15. Tao, Hu & Zhuang, Shan & Xue, Rui & Cao, Wei & Tian, Jinfang & Shan, Yuli, 2022. "Environmental Finance: An Interdisciplinary Review," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    16. Orji, Ifeyinwa Juliet & Kusi-Sarpong, Simonov & Huang, Shuangfa & Vazquez-Brust, Diego, 2020. "Evaluating the factors that influence blockchain adoption in the freight logistics industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    17. Destek, Mehmet Akif & Sohag, Kazi & Aydın, Sercan & Destek, Gamze, 2022. "Foreign direct investment, stock market capitalization and sustainable development: Relative impacts of domestic and foreign capital," MPRA Paper 117551, University Library of Munich, Germany.
    18. Ahl, Amanda & Goto, Mika & Yarime, Masaru & Tanaka, Kenji & Sagawa, Daishi, 2022. "Challenges and opportunities of blockchain energy applications: Interrelatedness among technological, economic, social, environmental, and institutional dimensions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 166(C).
    19. Changping Zhao & Juanjuan Sun & Yu Gong & Zhi Li & Peter Zhou, 2022. "Research on the Blue Carbon Trading Market System under Blockchain Technology," Energies, MDPI, vol. 15(9), pages 1-17, April.
    20. Agime Gerbeti, 2021. "Market Mechanisms for Reducing Emissions and the Introduction of a Flexible Consumption Tax," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(2), pages 161-178, December.

    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:tefoso:v:173:y:2021:i:c:s0040162521005576. 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.sciencedirect.com/science/journal/00401625 .

    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.