A blockchain model connecting electricity market and carbon trading market
Many countries adopt carbon trading mechanism as the main policy tool to control carbon emissions. Although carbon trading systems have been established, there are still some ongoing problems such as inconsistent carbon accounting standards, data distortion and inefficient overall process within the...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-04-01
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| Series: | Alexandria Engineering Journal |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S1110016825001395 |
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| author | Yi Wang Lijuan Feng Lin Wang Weiqiu Yu |
| author_facet | Yi Wang Lijuan Feng Lin Wang Weiqiu Yu |
| author_sort | Yi Wang |
| collection | DOAJ |
| description | Many countries adopt carbon trading mechanism as the main policy tool to control carbon emissions. Although carbon trading systems have been established, there are still some ongoing problems such as inconsistent carbon accounting standards, data distortion and inefficient overall process within these systems. We propose an innovative blockchain model that integrates the carbon trading system, initial carbon allowance allocation by regulatory authorities, electricity consumers, and power generation firms into a unified framework. By connecting these components, the model facilitates government regulation, emission reduction by electricity companies, electricity purchasing by consumers, and trading of surplus carbon allowances in the carbon market. The key innovations of our model include the establishment of a standardized carbon accounting system, enhanced data transparency to reduce the risk of data falsification, and a two-stage differential game framework that optimizes social welfare through effective control of total carbon emissions. Our simulations demonstrate that this blockchain system can effectively stabilize carbon emissions at a desirable level, thereby contributing to more efficient pollution control. |
| format | Article |
| id | doaj-art-c8212a228db94ae99c17f663a650601b |
| institution | Kabale University |
| issn | 1110-0168 |
| language | English |
| publishDate | 2025-04-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Alexandria Engineering Journal |
| spelling | doaj-art-c8212a228db94ae99c17f663a650601b2025-02-06T05:11:12ZengElsevierAlexandria Engineering Journal1110-01682025-04-01119232245A blockchain model connecting electricity market and carbon trading marketYi Wang0Lijuan Feng1Lin Wang2Weiqiu Yu3School of Statistics and Mathematics, Shandong University of Finance and Economics, Jinan, Shandong 250014, China; Corresponding author.School of Statistics and Mathematics, Shandong University of Finance and Economics, Jinan, Shandong 250014, ChinaDepartment of Mathematics and Statistics, University of New Brunswick, Fredericton, NB, Canada E3B 5A3Department of Economics, University of New Brunswick, Fredericton, NB, Canada E3B 5A3Many countries adopt carbon trading mechanism as the main policy tool to control carbon emissions. Although carbon trading systems have been established, there are still some ongoing problems such as inconsistent carbon accounting standards, data distortion and inefficient overall process within these systems. We propose an innovative blockchain model that integrates the carbon trading system, initial carbon allowance allocation by regulatory authorities, electricity consumers, and power generation firms into a unified framework. By connecting these components, the model facilitates government regulation, emission reduction by electricity companies, electricity purchasing by consumers, and trading of surplus carbon allowances in the carbon market. The key innovations of our model include the establishment of a standardized carbon accounting system, enhanced data transparency to reduce the risk of data falsification, and a two-stage differential game framework that optimizes social welfare through effective control of total carbon emissions. Our simulations demonstrate that this blockchain system can effectively stabilize carbon emissions at a desirable level, thereby contributing to more efficient pollution control.http://www.sciencedirect.com/science/article/pii/S1110016825001395BlockchainElectricity marketCarbon trading marketOptimal control |
| spellingShingle | Yi Wang Lijuan Feng Lin Wang Weiqiu Yu A blockchain model connecting electricity market and carbon trading market Alexandria Engineering Journal Blockchain Electricity market Carbon trading market Optimal control |
| title | A blockchain model connecting electricity market and carbon trading market |
| title_full | A blockchain model connecting electricity market and carbon trading market |
| title_fullStr | A blockchain model connecting electricity market and carbon trading market |
| title_full_unstemmed | A blockchain model connecting electricity market and carbon trading market |
| title_short | A blockchain model connecting electricity market and carbon trading market |
| title_sort | blockchain model connecting electricity market and carbon trading market |
| topic | Blockchain Electricity market Carbon trading market Optimal control |
| url | http://www.sciencedirect.com/science/article/pii/S1110016825001395 |
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