Design of A Double-blockchain Structured Carbon Emission Trading Scheme with Reputation

Abstract

This paper proposes a double-blockchain structured trading scheme (DBR-ETS) in carbon emission permits secondary market and introduces the enterprises' reputation, which is used to urge enterprises to actively invest in carbon emission reduction, and ultimately achieve carbon emission reduction in the overall society. The application of blockchain technology guarantees the security and privacy of distributed system. The confirmation chain and financial chain in the double-blockchain structure divide the transaction into two relatively independent processes, which can not only alleviate the transaction redundancy in the system but also improve the security of the system through the mutual verification of the two chains. The reputation-based transaction fee mechanism allows enterprises to promote their reputation by increasing investment in emission reduction. In the case study, we verified the superiority of the double-blockchain structure and the effect of the transaction fee mechanism on emission reduction.