Differentiated Real-time Pricing Strategy for Maximizing Social Welfare Based on Blockchain Technology

Junxiang Li (), Xuan Liu, Ru Wang, Deqiang Qu and Xi Wang
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Junxiang Li: University of Shanghai for Science and Technology
Xuan Liu: Zaozhuang University
Ru Wang: University of Shanghai for Science and Technology
Deqiang Qu: Henan University of Science and Technology
Xi Wang: University of Shanghai for Science and Technology

Computational Economics, 2025, vol. 66, issue 3, No 2, 1875 pages

Abstract: Abstract With the continuous construction of new power systems, optimizing the market power structure through the formulation of reasonable electricity pricing mechanisms is an important way to achieve the low-carbon goal, so this paper proposes a differentiated real-time pricing strategy to maximize social welfare supported by blockchain technology. The traceability and non-tamperable characteristics of blockchain quantify the impact of blockchain on market electricity differentiation and give demand-side users the right to choose electricity. This paper uses the utility function to characterize the user’s preference and utility for different electricity sources, sets up a tiered supply cost mechanism on the supply side, and further constructs a differentiated real-time pricing model based on blockchain to maximize social welfare, and uses duality theory and shadow price to solve it. The simulation results show that during a day’s electricity consumption cycle, user’s electricity demand has increased by 7%, traditional thermal power supply has decreased by 56.72%, and the proportion of renewable energy supply has increased by 37.86%. Therefore, the differentiated real-time pricing strategy can guide users to use electricity more accurately in a market manner, adjust the dispatch order of electricity more finely, optimize the power structure, and promote the low-carbon development of the power field.

Keywords: Blockchain technology; Renewable energy power; Differentiation; Real-time pricing; Social welfare maximizing (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10614-024-10756-5

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