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

Alia Al Sadawi, Batool Madani, Sara Saboor, Malick Ndiaye and Ghassan Abu-Lebdeh

Technological Forecasting and Social Change, 2021, vol. 173, issue C

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.

Keywords: Blockchain; Carbon Trading; IoT; Blockchain of Things; Greenhouse gasses (GHG); Smart Contract (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:173:y:2021:i:c:s0040162521005576

DOI: 10.1016/j.techfore.2021.121124

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