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

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

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 signific...

Full description

Saved in:
Bibliographic Details
Published in:Energies (Basel) Vol. 17; no. 13; p. 3296
Main Authors: Zhang, Guocong, Chen, Sonia Chien-I, Yue, Xiucheng
Format: Journal Article
Language:English
Published: Basel MDPI AG 01-07-2024
Subjects:
Algorithms
Blockchain
blockchain technology
Carbon
carbon trading price
Climate change
Compliance
Decentralization
Efficiency
Emission standards
Emissions trading
Energy consumption
event study approach
Hypotheses
Prices
Transparency
Volatility
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary: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.
ISSN:1996-1073
1996-1073
DOI:10.3390/en17133296