Incorporating seller/buyer reputation-based system in blockchain-enabled emission trading application

By Khamila Nurul Khaqqi, Janusz J. Sikorski, Kunn Hadinoto, Markus Kraft. 2018

327 citations recorded by the source corpus.

Emission Trading Scheme (ETS) has dual aims to reduce emission production and stimulate adoption of long-term abatement technology. Whilst it has generally achieved its first aim, its issues are hindering the accomplishment of the second. Several solutions have been proposed to improve ETS’s efficacy, yet none of them have considered the advancement of Industry 4.0. This paper proposes a novel ETS model customised for Industry 4.0 integration. It incorporates blockchain technology to address ETS’s management and fraud issues whilst it utilizes a reputation system in a new approach to improve ETS efficacy. Specific design of how the blockchain technology and reputation system are used to achieve these objectives is showed within this paper. The case study demonstrates the inner working of reputation-based trading system—in which reputation signifies participants performance and commitment toward emission reduction effort. Multi-criteria analysis is used to evaluate the proposed scheme against conventional ETS model. The result shows that the proposed model is a feasible scheme and that the benefits of its implementation will outweigh its drawback.

Subfields: Information Systems, Renewable Energy, Sustainability and the Environment, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/256553ef50899b0338398fdf90bcc7920f3a78ea

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In Information Systems

In Renewable Energy, Sustainability and the Environment

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In Strategy and Management

Citations in the corpus

Blockchain-oriented dynamic modelling of smart contract design and execution in the supply chain (2019, background): “Even if the advantages of Blockchain-based smart contracting in the SC have been highlighted in the literature as a promising research direction, there is still a lack of scientiﬁc methodology to Blockchain-driven design of the smart contracts in the SCs.”
A supply chain transparency and sustainability technology appraisal model for blockchain technology (2019, background): “…(Dorri et al. 2017), smart-contract transactions (Sikorski, Haughton, and Kraft 2017), governance disruption (Shermin 2017), emissions trading (Khaqqi et al. 2018), information sharing (van Engelenburg, Janssen, and Klievink 2019), enhancing supply chain resilience (Min 2019), increasing…”
Blockchain in the built environment and construction industry: A systematic review, conceptual models and practical use cases (2019, background): “O’Boyle (2017) has characterised blockchain as an ‘internet of value’, and its impact over the next 10 to 20 years could match that of the internet due to its decentralisation and irrevocable nature (Khaqqi et al., 2018).”
Industry 4.0 and Sustainability Implications: A Scenario-Based Analysis of the Impacts and Challenges (2018, background): “0, allows supporting an emissions trading application framework [80].”
Blockchain technology and its relationships to sustainable supply chain management (2018, background): “Thus, a reputation-based system is created which solves the inefficiency of ETS and it encourages all the participant to figure out a long-term solution to the emission reduction, because the participants are encouraged by the economic benefits of good reputation (Khaqqi et al. 2018).”