Paper 2024/1863

Blockchain-Based Carbon Footprint Management

Abstract

This paper introduces a novel approach to managing carbon footprints using blockchain technology to integrate these footprints intrinsically into the attributes of products, akin to their price. In contrast to conventional methods that treat carbon footprints as distinct, tradeable units, our model incorporates them directly into the product life cycle, thus maintaining the connection between environmental impact and product consumption. By closely examining blockchain's functionality, this study illustrates how it can improve transparency and security in transactions while influencing market dynamics by making carbon accountability an integral part of product ownership. This method may aid in establishing a more sustainable economic model by better incorporating environmental costs into transactions, potentially fostering progress in environmental finance and sustainability initiatives.