Internalization of externalities on the basis of blockchain

Abstract

The subject of this research is the generated by economic system positive and negative externalities and possibility of their account on the basis of innovative technologies. Currently, we can observe escalation of problems associated with the need for minimization of negative externalities, which create global risks for the world economic system. Most severe risks relate to ensuring sustainability of financial system, environmental pollution, climatic changes, and outbreak of new deadly diseases. Therefore, there is a need for implementation of the element of circular economy based on non-waste technologies that allow minimizing the negative externalities. The novelty of this study consists in demonstration of the possibility of using blockchain technologies for building a system of accounting positive and negative externalities generated within the economic system. Tokenization on the blockchain platform creates a possibility for formation of the indicated mechanism. The system of tokenization of externalities includes: a) formulation of target behavior of economic agents; b) creation of blockchain platform ensuring emission of tokens; c) determination of the exchange rate of tokens by economic agents for economic incentives; d) performance assessment of economic agents of reduction of negative externalities and increase of positive externalities. The emitted within the framework of blockchain platform of national project tokens would be distributed among the participants of national project, including enterprises, regional and local authorities, activists among the population, initiative groups, thus forming a flexible system of reinforcement of actors. Use of the described model of tokenization of externalities turns these projects transparent for the population and makes them the full-fledged members of an expert community that assesses the level of externalities and their minimization on the basis of tokens economy.