Blockchain Adoption For Promoting Carbon Emission Reduction In Relation To Social Comparison And Competition

Document Type

Article

Publication Date

6-1-2026

School

Marketing

Abstract

This paper examines the impact and value of blockchain adoption on firms’ carbon emission reduction decisions. Accounting for social comparison between eco-conscious and general consumers, we develop game-theoretic models of producers and consumers under both monopoly and competition conditions, and where low-carbon and traditional (non-low-carbon) products coexist. We first show that the probability of eco-conscious consumers purchasing low-carbon products is raised as blockchain changes the demand structure in the competition market. Interestingly, however, adopting blockchain in the competition market does not necessarily lead to higher carbon emission reduction. This is different from the positive effect of blockchain in the monopoly market that promotes carbon emission reduction. Second, in stark contrast to the monopoly market, we identify that competition is more conducive to the adoption of blockchain and the promotion of carbon emission reduction by a firm. Nevertheless, competition does not always improve consumer surplus—A counterintuitive result. Third, our analysis concludes that, as the fraction of eco-conscious consumers continues to increase, social comparison instead has a dampening effect on firms’ incentives to adopt blockchain and enhance carbon emission reduction. These findings provide a new theoretical mechanism concerning blockchain adoption in promoting sustainability within the social comparison context and a quantitative basis for government carbon regulation.

Publication Title

Omega United Kingdom

Volume

141

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