Blockchain and tokenized carbon markets: Empirical evidence on market efficiency and transaction dynamics

This study explores the sustainability-enhancin g financial effects of blockchain on carbon-linked digital markets. Drawing on a panel dataset of daily transactions from leading tokenized carbon platforms between 2020 and 2023, the study applies a fixed-effects Difference-in-Differences (DiD) framew...

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Bibliographic Details
Main Author: Haykel Tlili
Format: Article
Language:English
Published: Elsevier 2025-12-01
Series:Sustainable Futures
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Online Access:http://www.sciencedirect.com/science/article/pii/S2666188825006732
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Summary:This study explores the sustainability-enhancin g financial effects of blockchain on carbon-linked digital markets. Drawing on a panel dataset of daily transactions from leading tokenized carbon platforms between 2020 and 2023, the study applies a fixed-effects Difference-in-Differences (DiD) framework to assess how the introduction of blockchain-based infrastructure influences carbon asset prices and trading volumes. Our findings reveal that higher transaction costs, often viewed negatively, may actually signal trusted infrastructure in illiquid sustainability markets, boosting investor confidence. The results confirm that blockchain adoption improves pricing efficiency under specific liquidity conditions, while exhibiting limited short-term effects on volume. It offers new evidence on how blockchain can strengthen carbon markets; reduce transactional inefficiencies, and advance climate action and sustainable development goals (SDGs). These insights inform policymakers, regulators, and investors aiming to design resilient, efficient, and scalable digital carbon markets.
ISSN:2666-1888