ESG, carbon emissions, and tokenization

Abstract:

As global efforts toward decarbonization accelerate, firms face increasing pressure to integrate environmental, social, and governance (ESG) considerations into their strategic and operational decisions. However, traditional ESG reporting and carbon trading mechanisms often suffer from low transparency, verification challenges, and inefficient incentive alignment among stakeholders. This project investigates how tokenization and blockchain technologies can enhance the efficiency, credibility, and inclusiveness of ESG and carbon emission systems.

Specifically, we examine (i) how token-based mechanisms can represent verified carbon credits or sustainability actions in a transparent and tradable form; (ii) how smart contracts can automate compliance, verification, and incentive distribution within corporate or supply chain contexts; and (iii) how such systems can complement existing carbon emission trading schemes (ETS) and voluntary carbon markets (VCM). The research will develop analytical and simulation-based models to compare tokenized and traditional market designs in terms of efficiency, participation incentives, and emission outcomes.

Skills and experience required for the project:

coding, economics, game theory, econometrics