Dynamic Incentive Contract of Government for Port Enterprises to Reduce Emissions in the Blockchain Era: Considering Carbon Trading Policy

Abstract

Blockchain technology is very useful. This paper considers the application of blockchain technology to smart contracts, green certification, and market information disclosure, and introduces the carbon trading market price as a parameter to solve the dynamic incentive problem of the government for port enterprises to reduce emissions under the carbon trading policy. Based on the state change of port carbon emission reduction, this paper uses principal–agent theory to construct the dynamic incentive contract model of government without blockchain, with blockchain, and when carbon trading is considered under blockchain, respectively, and uses the optimal control method to solve and analyze the model. This paper finds that only when the opportunity cost of port enterprises is greater than a certain critical point and the fixed cost of blockchain is less than a certain critical point, the implementation of blockchain will help improve government efficiency. However, only when the critical value of carbon emission reduction of port enterprises and the unit operating cost of blockchain are small, the government should start the carbon trading market under blockchain technology. Through numerical simulation, this paper also finds that it is usually beneficial for the government to regulate and appropriately increase the carbon trading market price.