Forget Paris: Building a Carbon Market in the U.S. Using Blockchain-Based Smart Contracts

23 Pages Posted: 16 Dec 2017 Last revised: 26 Jan 2020

Date Written: December 4, 2017

Abstract

This article proposes creating a market where corporations and individuals in the United States can purchase credits that offset greenhouse gas ("carbon") emissions. University departments would issues these credits in the form of cryptocurrency in order to raise funds for projects that offset carbon emissions. The fundraising for these projects would be implemented using the Initial Coin Offering method on Ethereum's blockchain. Part 2 introduces the reader to the blockchain protocol and how it has been developed as a platform for decentralized computer applications. Part 3 describes how university departments could use decentralized applications to create a carbon market, and Part 4 attempts to address potential problems with this proposed market; Part 5 concludes. This article is for educational purposes only, and should not be relied on as, or interpreted as giving, legal or financial advice.

Keywords: Carbon, Carbon Market, Greenhouse Gas, Emissions, Climate Change, Blockchain, Bitcoin, Ethereum, Initial Coin Offering, Cryptocurrency, Decentralized

Suggested Citation

Leonhard, Robert, Forget Paris: Building a Carbon Market in the U.S. Using Blockchain-Based Smart Contracts (December 4, 2017). Available at SSRN: https://ssrn.com/abstract=3082450 or http://dx.doi.org/10.2139/ssrn.3082450

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