Using the Blockchain to Reduce Carbon Emissions in the Visitor Economy

Abstract

The visitor economy is responsible for a substantial percentage of the global carbon footprint. The mechanisms used to decarbonize it are insufficient, and the industry is relying on carbon trading with substandard credits that allow businesses to outsource the responsibility to decarbonize. We aim to transform carbon markets, help finance climate investments, and support decarbonization strategies. We identify and define the problem, outline the components and their interactions, and develop a conceptual model to transform carbon markets. The new, blockchain-based Carbon Tokenomics Model rolls out a decentralized database to store, trade, and manage carbon credits, with the goal of enabling sustainable climate finance investment. We outline the criteria needed for an industry-wide carbon calculator. We explain the process needed to increase rigor in climate investments in the visitor economy and introduce a delegated Proof of Commitment consensus mechanism. Our inclusive and transparent model illustrates how to reduce transaction costs and how to build consumer and industry trust, generating much-needed investments for decarbonization.