(189f) Reputation-Based Market on the Blockchain Platform: An Emission Trading Application

The application of blockchain in emission trading that encourages participant compliance and climate change conscious behaviour through trading advantages is presented in this paper. The designed scheme adds a reputation system to conventional cap-and-trade scheme implemented on the blockchain platform. The trading process in the application is heavily influenced by participant's reputation that indicates their business approach related to the emission abatement effort. The reputation system and the trading advantages distributed based on it act as an inducement for participant better business practice. The case study presented exhibit the trading process as implemented using blockchain while emphasizing the trading advantages some participant will have over the others on a free trading market. Multi-criteria analysis is employed to evaluate the viability of the scheme. It concludes that the proposed scheme that utilizes blockchain technology and reputation system can be used to improve the conventional emission trading scheme in reducing emission production and increasing the adoption of abatement technology.