Blockchain Technology in Carbon Trading Markets: Impacts, Benefits, and Challenges—A Case Study of the Shanghai Environment and Energy Exchange

Guocong Zhang, Sonia Chien-I Chen () and Xiucheng Yue
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Guocong Zhang: School of Economics, Qingdao University, Qingdao 266071, China
Sonia Chien-I Chen: School of Economics, Qingdao University, Qingdao 266071, China
Xiucheng Yue: School of Economics, Qingdao University, Qingdao 266071, China

Energies, 2024, vol. 17, issue 13, 1-15

Abstract: This study employs the Shanghai Environment and Energy Exchange as a case study to investigate the effects of blockchain technology applications on transaction prices within the carbon trading market. Utilizing an event study methodology, the research demonstrates that blockchain technology significantly enhances the transparency, security, and efficiency of the carbon market, thereby exerting a positive influence on transaction prices. Nonetheless, the study also identifies several challenges associated with blockchain applications, including increased costs, heightened energy consumption, transaction delays, and substantial learning costs. To mitigate these issues, the study proposes optimizing blockchain architecture, incorporating Layer 2 technologies to expedite transaction processes, and developing innovative regulatory frameworks.

Keywords: blockchain technology; carbon trading price; event study approach (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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