Pricing decisions of blockchain-based dual-channel low-carbon supply chains

Purpose. The purpose is to reveal the theoretical and practical aspects of the implementation and application of blockchain technology in the economic activity of agricultural enterprises, taking into account the economic feasibility of their implementation and determining the system of elements of the implementation of blockchain technology in agriculture. Methodology / approach. The following methods were used during the research: analysis and synthesis, scientific abstraction – when determining the goal and formulating research conclusions; comparative, calculation, statistical and graphic – when evaluating, analyzing, comparing and determining the current state of implementation of blockchain technology in the economic activity of agricultural enterprises. The method of surveying agricultural producers regarding their awareness of blockchain technology and the benefits of its application was also used. The research used: a theoretical approach (based on the analysis of theoretical aspects of blockchain technology and its application in agriculture) and a practical approach (on the basis of the proposed methodology, the economic feasibility of using blockchain technology in the economic activity of an agricultural enterprise was determined). Results. The main areas of influence of blockchain technology in agriculture have been determined. It has been established that every year the amount of funding for the implementation of blockchain technology is increasing, and the reasons are identified. The world experience of implementing blockchain technology in the economic activity of agricultural producers is considered. The results of a survey of agricultural producers of the Mykolaiv and Kirovohrad regions regarding their awareness of blockchain technology and the benefits of its implementation are highlighted. The objective reasons that affect the implementation of blockchain technology in agricultural production are determined and ways of its popularization are proposed. An action algorithm for the introduction of blockchain technology for agricultural producers has been developed. Agricultural producers who are potentially ready and financially able to implement this technology in their activities have been identified. The main factors affecting the cost of implementing blockchain technology in agricultural production have been identified. A methodology for calculating the economic feasibility of implementing blockchain technology according to optimistic and pessimistic options is proposed, and the calculation of the net present value, payback period, discounted payback period of the project, internal rate of return and the rate of return on the example of a specific enterprise of the Mykolaiv region is carried out. Based on theoretical and practical approaches, a system of elements for implementing this technology in agriculture has been developed. Originality / scientific novelty. The novelty consists in the implementation of a comprehensive theoretical study of the problems and prospects of the implementation of blockchain technology in agriculture; for the first time, a system of elements for the implementation of blockchain technology in agriculture was developed; an algorithm of actions for agricultural enterprises that plan to implement this technology was improved; a methodology for calculating the economic feasibility of implementing blockchain technology in an agricultural enterprise was proposed. Practical value / significance. The results can be used in the process of decision-making by business entities regarding the implementation of blockchain technology and the calculation of its economic feasibility, during the optimization of the processes of management of production, financing, supply chains, etc., as well as by scientists, government bodies and other entities that are interested in implementation of blockchain technology in agriculture.

In the context of the dual-carbon goal, it is of great significance to study the application of blockchain technology in the dual-channel supply chain under the carbon trading mechanism for the carbon emission reduction of enterprises and the overall profit maximization of the supply chain.In this paper, two decision models of the supply chain under secondary carbon trading are constructed to analyze the two cases of whether to adopt blockchain technology. Stackelberg model is used to study the impact of blockchain technology on the pricing decision of the dual-channel supply chain under carbon trading, and the two models are compared and analyzed.According to the research results, after the application of blockchain technology, wholesale prices, direct sales prices, retail prices, and profits of retailers and manufacturers have increased compared with the non-use of blockchain technology, which is conducive to promoting the development of carbon emission reduction for manufacturers.

Chapter 8 - Application of Blockchain Technology in agri-food supply chains: Opportunities and challenges

This document summarizes research supporting the implementation of blockchain technology in the food and agriculture industry in Ontario. First, our research indicates that blockchain technology based solutions are an existing and proven set of technologies, where it has already been proven that the source of food items can be identified in seconds where previous processes required days and weeks of effort. Second, we also describe how blockchain based supply chain provenance information has many more benefits than its current use for food safety and product recalls. Consumers are willing to pay premium prices for food based on reliable supply chain information that matches the consumers expectations and values. Costs related to blockchain technology based solution development and implementation will be relatively small in comparison to revenues generated through increased market share by organizations providing useful information to consumers, and other stakeholders in the food supply chain. Third, we recommend that costs for development of blockchain based solutions should also be distributed across stakeholders, and apportioned by the relevant industry associations. Implementation of smart contracts can be used to guarantee a pre-arranged distribution of revenues and costs across stakeholders across the food supply chain. A consortium approach will reduce individual organization related risks, and will ensure that complete end to end supply chains participate in blockchain based technology solutions. Our research indicates that adoption of blockchain technology in agriculture will be achieve critical mass earlier when the industry applies a consortium approach, in a regulatory environment that is supported by government. Finally, this report also makes recommendations relevant to the integration of blockchain technology with per item labelling, one of the core competencies and strengths of the project partner, Accu-Label Inc. Instead of each organization attempting to navigate their own path through the different choices in technologies, we recommend a consortium approach where a blockchain technology based solution is selected and implemented through existing industry associations. Industry associations by design address the needs of their members, and therefore have a built-in relationship of trust with their members. This preexisting trust between industry associations and their members will enable pre-arranged distribution of costs and revenues related to implementation of blockchain technology between different stakeholders. Industry associations can pilot simpler low cost blockchain based solutions to reduce the risks developing more complex and expensive solutions. Blockchain based smart contracts provide an additional layer of assurance by pre-defining conditions of revenue/cost distribution, and automating the process. Summary of Recommendations: 1. Pilot different blockchain technologies to determine the best fit for the industry and organization. 2. Determine information that is of value to stakeholders in the supply chain, such as end consumers, and that they are willing to pay for. 3. Distribute the costs of blockchain technology development across different stakeholders in a consortium approach through industry associations. 4. Ensure that a robust mechanism exists to bridge information flows with physical food product flows.

Blockchain technology can be used to record real data at various nodes in the entire supply chain and can achieve timely data sharing and full traceability of the whole lifecycle of products in the supply chain. This study conducts a systematic literature review based on the WOS database, focusing on the research topic of the application of blockchain technology in supply chain management. We propose clear search and screening criteria based on 4 research questions and finally obtain 591 target studies. We conduct a detailed study on the distribution of the target literature in this research area, country/region, institution, and journal. Different countries/regions cooperate with each other and, thus, are clustered into five significant countries regions’ cooperation networks. There is a strong coupling relationship between research institutions, forming four major institutional cooperation networks. According to the analysis of those papers with a high number of citations, most of such papers were published in 2019, while the cross-citation phenomenon between papers occurred more frequently in 2021 and 2022. We use VOSviewer for visual coupling analysis of all keywords, which are automatically clustered into three research hotspots. Using CiteSpace to perform timeline-based keyword cooccurrence analysis, we find that scholars have gone through a “discovery-acceptance-question-improvement” process for the application of blockchain technology in supply chain management. According to the intensity and duration of burst detection words in different years, we draw three key points for future research. (i) Blockchain technology should be used to restructure and optimize the high-end food and medical cold chain supply chains. (ii) Blockchain technology should be used to enhance the cooperative relationship between supply chain members and the overall competitiveness of the supply chain. (iii) Innovate blockchain encryption technology that should be used to reduce the risk of information and privacy leakage in the supply chain.

The blockchain technology has been in the limelight with the emergence of bitcoin and since then it is attracting huge interest and investment across industries. The blockchain technology is a decentralized and a distributed-leger technology in which all the information or transactions are digitally stored in a secure environment across different locations and people. The petroleum industry is not far behind in adopting the blockchain technology due to its cost benefits, security, and transparency it brings to the whole system. Various projects successfully implemented in the petroleum industry based on the blockchain technology are trading platform, smart contract management, royalty transactions, etc. The implementation of blockchain technology in petroleum industry is still at a nascent stage but it has the potential to completely transform and disrupt the petroleum industry. This paper review the characteristic features, merits and demerits of different types of blockchain, the design principle of any blockchain technology, potential application and various use cases of blockchain technology in petroleum industry.

With the development of society and economy, the production methods that consuming a lot of resources are gradually unable to meet the needs of modern life. And with the rise of consumers' awareness of environmental protection, more and more low-carbon production of manufacturers have been put forward. In order to encourage manufacturers to product with low carbon, the carbon tax policy is proposed. Under the pressure of the new policy and consumers' environmental awareness, manufacturers' production decisions will face many challenges. In addition, the rapid development of the Internet and the popularity of online shopping have also enabled manufacturers to engage in online direct sales, which has many impacts on traditional retail. Under such circumstances, consumers' channel preferences will also have many influences on manufacturers' production decisions. Therefore, it is necessary to study the influence of carbon tax, consumer green preference and channel preference on supply chain members. Therefore, this study constructs a dual-channel supply chain model consisting of a single manufacturer and a retailer to determine the optimal pricing of supply chain members and minimum carbon emissions of the manufacturer in the two scenarios of centralized decision-making and decentralized decision-making, respectively. The impact of consumers' environmental awareness, carbon tax rates and consumers' channel preferences on the carbon emissions of products and the profits of manufacturers and retailers are analyzed. The research results show that: when the carbon tax rate is low, with the rising of consumers' awareness of environmental protection and carbon tax, it is necessary to increase the carbon tax on clean manufacturers to enable them to take more market share, and increase the carbon tax on low carbon emission manufacturers to force them to make more efforts on clean manufacturing. Besides, low-carbon taxes should be imposed on medium carbon emission manufacturers to avoid them from going back to high-polluting production, and on high carbon emission manufacturers, so that they will have more funds to carry out cleaner production reforms. Besides, shopping online should be encouraged.

In view of the rapid development and application of blockchain technology, this paper considers a secondary supply chain system consisting of a single upstream supplier and a downstream e-tailer that implements blockchain technology and a traditional e-tailer that does not implement blockchain technology. We establish the demand function of two channels based on consumers’ sensitivity to the blockchain and use the Stackelberg game model to compare and analyse the e-tailers’ profits from the two channels. For the basic properties, interestingly, we find that there exists a critical threshold on the cost sensitivity to effort that helps each e-tailer decide whether to implement effort. If the cost sensitivity to effort is high, the two-sided e-tailers will reduce their effort as much as possible to obtain greater profits. Conversely, if the cost sensitivity to effort is low, they will increase their effort to obtain more benefits. We also discuss the role of blockchain technology in competition between e-tailers and analyse the impact of the product brand effect brought by the traceability characteristic of blockchain on the competition between e-tailers. To check the robustness of the core results and to investigate different forms of supply chain configurations, this paper further develops the analysis of the supplier entering agency agreements with two-sided e-tailers. Under this scenario, the supplier sells their products directly to consumers through two-sided e-platforms and shares revenue with e-tailers as platform agency fees. These core ideas remain valid in the extended model.

Frequent problems of counterfeiting have spawned consumer demands to monitor the entire supply chain. The application of blockchain technology with anti-counterfeiting and traceability can improve the reliability and authenticity of product information and eliminate consumer doubts about product quality. Furthermore, based on the transparency of blockchain technology, brand suppliers can independently obtain the market demand information through information sharing. This paper introduces a consumer suspicion coefficient to illustrate the application of blockchain technology in the supply chain. Considering product authenticity verification and information sharing, we study the optimal pricing and product quality decisions in a two-level supply chain under the following three scenarios: (1) no blockchain technology, a traditional supply chain, and no information sharing (case TN); (2) no blockchain technology but a traditional supply chain with information sharing (case TS); and (3) a supply chain based on blockchain technology (case BT). We find that when the consumer suspicion coefficient increases, consumers will have limited faith in the authenticity of the product, which will affect the retailer’s optimal decision and profit. By comparing the equilibrium results of several cases, we also find that demand information sharing by the retailer may not achieve a win-win outcome in a decentralized channel in the absence of blockchain technology. Under demand information sharing based on blockchain technology, however, if the consumer suspicion coefficient exceeds a certain threshold, the brand supplier and retailer can achieve a win–win outcome. In addition, the extended models reveal that in a centralized supply chain, regardless of the state of market demand, blockchain technology can always improve product quality and retail price and optimize supply chain profit.

Blockchain Technology for Ophthalmology: Coming of Age?

This paper explores a low-carbon supply chain comprising a capital-constrained manufacturer and a retailer under cap-and-trade regulation. The manufacturer can obtain financing support for both production and carbon emission reduction through either Bank Financing (BF) mode or Mixed Financing (MF) modes. The incorporation of blockchain technology is posited to enhance the transparency of uncertain emission reduction data within the supply chain, allowing banks to adjust interest rates accordingly via smart contracts. Four modes are analyzed: BF without blockchain technology, BF with blockchain technology, MF without blockchain technology, and MF with blockchain technology. Under MF, the retailer provides financing support for production cost and the bank provides financing support for carbon emission reduction. The findings indicate that the utilization of blockchain technology improves supply chain profits when its cost is moderate. Without blockchain, BF mode will be chosen when faced with intermediate bank interest rate. Conversely, when the manufacturer employs blockchain technology, the strategic choices of both the manufacturer and retailer regarding the BF and MF modes are independent of the associated cost. Additionally, BF mode becomes more attractive when the trigger point for emission reduction output is moderate and the cost of adopting blockchain technology is minimal.

This paper uses symmetry to develop a dual-channel supply chain network model, both with and without blockchain technology, ensuring that the solutions for pricing and channel selection are symmetric in both modes. And, in the model that does not employ blockchain technology, mechanisms are used to make the benefits of centralized and decentralized decision-making symmetrical. Consumers often have varied psychological expectations when choosing products. This paper considers the reference quality effect, where consumers establish a reference quality before making a purchase decision. However, the lack of transparency in product sales across supply chain channels can lead to a disparity between actual and expected product quality, impacting market demand and brand reputation. Therefore, manufacturers must balance increasing profits with meeting consumer demand for product traceability. This paper focuses on a dual-channel supply chain model involving manufacturers, retailers, and consumers. Firstly, the pricing issues and channel selections under centralized decision-making and a Stackelberg game with decentralized decision-making are comparatively analyzed in the mode of without adopting blockchain technology and adopt two-part pricing contract to coordinate. Secondly, the impact of blockchain technology on pricing is examined when it is adopted. Thirdly, pricing issues and channel selection strategies based on actual product quality in the dual-channel supply chain are compared under both models. Finally, numerical simulations validate the findings. The study found that: (1) the reference quality effect has a cross-positive influence on the equilibrium price and profit of a dual-channel supply chain; (2) the two-part pricing contract can mitigate the double-marginal effect and enhance profits; and (3) the adoption of the blockchain technology leads to increased equilibrium prices and total profits in the dual-channel supply chain compared to not using it. This paper offers a theoretical foundation for manufacturers and retailers to develop effective pricing and channel selection strategies in dual-channel operations to achieve higher returns.

PurposeStudies show that the fourth industrial revolution (4IR) technologies can be used to transform the built environment sector in the 21st century. Blockchain technology has been identified as one of the drivers of 4IR that could be a channel of innovation in the built environment. Studies concerning the application of blockchain technology in Nigeria’s built environment are scarce. Thus, this study aims to investigate the relevance of blockchain technology to the Nigerian built environment professionals (BEP) in the 21st century and proffer ways to promote the applications in the sector.Design/methodology/approachGiven the unexplored nature of the issue in Nigeria’s context, 20 semi-structured virtual interviews were conducted across Lagos and Abuja cities. The participants were knowledgeable in construction-related information technology, from construction contracting firms and construction consulting firms, academicians in construction consultancy and internet and communication technology experts. The collated data were coded, analysed and presented in themes via a thematic approach.FindingsAutomating construction progress payments in smart contracts, financial management and supply chain management reduces transaction costs emerged as the key areas where blockchain technology can benefit the Nigerian BEP if well implemented. Others are blockchain-based BIM and prevents forgery and alteration of data, contract management and blockchain-based building information modelling (BIM). Blockchain technology applications are not without some hindrances. The 22 perceived hindrances were government, employer and employee related in Nigeria’s built environment.Research limitations/implicationsThis research is restricted to the relevance and encumbrances facing the applications of blockchain technology in Nigeria’s built environment. Also, this study proffers policy solutions to promote the application of blockchain technology in the built environment via a qualitative method. Future study becomes pertinent to explore other components of the 4IR and their relevance within Nigeria’s built environment.Practical implicationsResults from this paper will strengthen and offer a rich insight into the relevance of blockchain technology in the Nigerian built environment. Other developing nations with similar challenges may consider the recommendations from this study. This study will contribute towards stirring the parties to create a good platform and supporting policies to promote the applications and implementation of blockchain technology across the industry.Originality/valueThis paper is one of the few papers that attempted to uncover issues that hinder blockchain technology applications in the Nigerian built environment via a qualitative approach and proffer feasible solutions from the practitioners’ perspective.

With the gradual development of the new energy vehicle (NEV) industry, the market share and scale of enterprises continue to expand. However, supply chain and finance management have become more difficult as a result of the intricate industrial chain structure. While supply chain finance can provide financing support, the accuracy and timeliness of information transmission are difficult to guarantee. Because of its distinct security qualities, blockchain technology is becoming more and more popular in the financial industry as a significant information technology. This paper focuses on the application of blockchain technology in the supply chain finance of the new energy vehicle industry. It explores how integrating blockchain technology can improve the efficiency and reliability of supply chain finance to address information transmission issues in the NEV industry and promote the stable development of the industrial chain. The study finds that blockchain technology, with its unique security and information technology attributes, is highly compatible with the trend of intelligence and informatization in the NEV industry. By introducing blockchain technology, secure, convenient, and timely sharing of information between enterprises can be achieved, effectively integrating supply chain finance, improving its operational efficiency and reliability, and bringing numerous benefits to enterprises in the industrial chain, thus assisting the sustainable development of the NEV industry.

В данной статье рассматривается использование блокчейн-технологий в управлении цепочками поставок и оценивается их воздействие на прозрачность и эффективность бизнес-операций. В последние годы блокчейн стал одним из наиболее обсуждаемых инновационных решений в области цифровых технологий. Его способность обеспечивать прозрачность и надежность данных открывает новые перспективы для улучшения управления цепочками поставок. Основной целью данного исследования является анализ того, как внедрение блокчейн-технологий может оптимизировать процессы и повысить доверие между участниками цепочки поставок. Для достижения поставленных целей использовались как качественные, так и количественные методы исследования. На первом этапе была проведена детализация понятия блокчейн и его ключевых характеристик, важных для цепочек поставок. Затем посредством опросов и интервью с представителями компаний, использующими блокчейн, собраны эмпирические данные. На заключительном этапе выполнена статистическая обработка информации и построение моделей для оценки влияния блокчейн-технологий на эффективность цепочек поставок. Результаты исследования показали, что применение блокчейн-технологий в управлении цепочками поставок приводит к значительному повышению прозрачности процессов. Среди положительных аспектов отмечены улучшение отслеживаемости товаров, сокращение времени на проверку достоверности данных и снижение риска мошенничества. Кроме того, блокчейн обеспечивает более эффективное управление контрактами и соглашениями, что способствует уменьшению количества конфликтных ситуаций между партнерами. Количественный анализ продемонстрировал, что компании, внедрившие блокчейн, показывают увеличение производительности и снижение операционных затрат. Полученные данные подтверждают гипотезу о том, что блокчейн-технологии могут значительно повысить эффективность и прозрачность управления цепочками поставок. Однако исследование также выявило ряд проблем и ограничений, связанных с внедрением этой технологии, таких как высокая стоимость начальных инвестиций и необходимость обновления инфраструктуры. Важным фактором успеха является также готовность партнерских компаний к сотрудничеству и адаптации под новые условия. Внедрение блокчейн-технологий в управление цепочками поставок имеет потенциал существенно улучшить прозрачность и эффективность бизнес-операций. Исследование показывает, что блокчейн-системы способны обеспечить высокий уровень доверия и оптимизацию процессов, что, в свою очередь, может привести к конкурентным преимуществам для компаний. Однако для достижения этих результатов необходимо учитывать различные вызовы и тщательно планировать процесс интеграции. This article examines the use of blockchain technologies in supply chain management and evaluates their impact on the transparency and efficiency of business operations. In recent years, blockchain has become one of the most discussed innovative solutions in the field of digital technologies. Its ability to ensure data transparency and reliability opens up new perspectives for improving supply chain management. The main goal of this study is to analyze how the implementation of blockchain technologies can optimize processes and increase trust among supply chain participants. To achieve these goals, both qualitative and quantitative research methods were used. In the first stage, the concept of blockchain and its key characteristics important for supply chains were detailed. Then, empirical data were collected through surveys and interviews with representatives of companies using blockchain. In the final stage, statistical processing of the information and the construction of models to assess the impact of blockchain technologies on the efficiency of supply chains were carried out. The results of the study showed that the application of blockchain technologies in supply chain management leads to a significant increase in process transparency. Positive aspects include improved traceability of goods, reduced time for data verification, and reduced risk of fraud. Additionally, blockchain ensures more efficient management of contracts and agreements, which helps reduce the number of conflict situations between partners. Quantitative analysis demonstrated that companies that have implemented blockchain show increased productivity and reduced operating costs. The obtained data confirm the hypothesis that blockchain technologies can significantly increase the efficiency and transparency of supply chain management. However, the study also revealed a number of problems and limitations associated with the implementation of this technology, such as the high cost of initial investments and the need to update infrastructure. An important success factor is also the readiness of partner companies to cooperate and adapt to new conditions. The implementation of blockchain technologies in supply chain management has the potential to significantly improve the transparency and efficiency of business operations. The study shows that blockchain systems can provide a high level of trust and process optimization, which, in turn, can lead to competitive advantages for companies. However, to achieve these results, it is necessary to consider various challenges and carefully plan the integration process.