Blockchain Traceability Adoption in Low-Carbon Supply Chains: An Evolutionary Game Analysis

Abstract

Blockchain technology has brought innovation to supply chain management, particularly in managing carbon emissions in the manufacturing sector. However, there is a research gap regarding the policy tools and the role of local governments in implementing blockchain technology to achieve carbon emissions traceability. Additionally, the strategic relationships and policy implications resulting from the implementation of blockchain technology are not examined systematically. An effective method for examining the strategies used in interactions between supply chain stakeholders and governments is evolutionary game theory, or EGT. This paper employs mathematical modelling and MATLAB 2016 software simulation to examine the decision-making process of manufacturing companies when considering implementing blockchain technology traceability. Specifically, the subjects in the model include product manufacturers (PM), product suppliers (PS), and local governments (LGs). The aim is to examine the decision-making behavior of carbon traceability participants in blockchain technology. This paper analyses the most effective blockchain-based traceability strategies for low-carbon supply chain members under a variety of scenarios by modifying the parameters. The findings suggest the following: (1) Manufacturers and suppliers need to manage the cost of blockchain traceability, collaborate to create an environmentally friendly product certification system, and improve brand image. (2) Local governments should set up efficient reward and punishment systems to incentivize supply chain stakeholders to engage in the blockchain traceability system. The aforementioned discoveries furnish policymakers with guidance to encourage the implementation of blockchain-based carbon footprint traceability technology, thereby establishing a transparent carbon footprint traceability framework across the entire supply chain.