Blockchain technology adoption for collaborative emission reduction considering carbon information asymmetry in supply chains

Abstract

Purpose

Collaborative emission reduction among supply chain members has emerged as a new trend to achieve climate neutrality goals and meet consumers’ low-carbon preferences. However, carbon information asymmetry and consumer mistrust represent significant obstacles. This paper investigates the value of blockchain technology (BCT) in solving the above issues.

Design/methodology/approach

A low-carbon supply chain consisting of one supplier and one manufacturer is examined. This study discusses three scenarios: non-adoption BCT, adoption BCT without sharing the supplier’s carbon emission reduction (CER) information and adoption BCT with sharing the supplier’s CER information. We analyze the optimal decisions of the supplier and the manufacturer through the Stackelberg game, identify the conditions in which the supplier and manufacturer adopt BCT and share information from the perspectives of economic and environmental performance.

Findings

The results show that adopting BCT benefits supply chain members, even if they do not share CER information through BCT. Furthermore, when the supplier’s CER efficiency is low, the manufacturer prefers that the supplier share this information. Counterintuitively, the supplier will only share CER information through BCT when the CER efficiencies of both the supplier and manufacturer are comparable. This diverges from the findings of existing studies, as the CER investments of the supplier and the manufacturer in this study are interdependent. In addition, despite the high energy consumption associated with BCT, the supplier and manufacturer embrace its adoption and share CER information for the sake of environmental benefits.

Practical implications

The firms in low-carbon supply chains can adopt BCT to improve consumers’ trust. Furthermore, if the CER efficiencies of the firms are low, they should share CER information through BCT. Nonetheless, a lower unit usage cost of BCT is the precondition.

Originality/value

This paper makes the first move to discuss BCT adoption and BCT-supported information sharing for collaborative emission reduction in supply chains while considering the transparency and high consumption of BCT.

Citation

Wu, X.-Y. and Pu, X. (2024), "Blockchain technology adoption for collaborative emission reduction considering carbon information asymmetry in supply chains", Kybernetes, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/K-08-2023-1570