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Consumer-centric decarbonization framework using Stackelberg game and Blockchain

Hua, Weiqi; Jiang, Jing; Sun, Hongjian; Teng, Fei; Strbac, Goran

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Weiqi Hua

Jing Jiang

Fei Teng

Goran Strbac


Energy policy is too often not designed for energy consumers in a low-cost and consumer-friendly manner. This paper proposes a novel Stackelberg game and Blockchain-based framework that enables consumer-centric decarbonization by automating iterative negotiations between policy makers and consumers or generators to reduce carbon emissions. This iterative negotiation is modeled as a Stackelberg game-theoretic problem, and securely facilitated by Blockchain technologies. The policy maker formulates carbon prices and monetary compensation rates to dynamically incentivize the carbon reduction, whereas consumers and generators schedule their power profiles to minimize bills and maximize profits of generation, respectively. The negotiating agreement is yielded by reaching a Stackelberg equilibrium. The exchanged information and controlling functions are realized by using smart contracts of Blockchain technologies. Case studies of GB power systems show that the proposed framework can incentivize 9% more bill savings for consumers and 45.13% more energy generation from renewable energy sources. As a consumer-centric decarbonization framework, it can at least reduce carbon emissions by 40%.


Hua, W., Jiang, J., Sun, H., Teng, F., & Strbac, G. (2022). Consumer-centric decarbonization framework using Stackelberg game and Blockchain. Applied Energy, 309, Article 118384.

Journal Article Type Article
Acceptance Date Dec 10, 2021
Online Publication Date Jan 7, 2022
Publication Date Mar 1, 2022
Deposit Date Dec 10, 2021
Publicly Available Date Jan 7, 2023
Journal Applied Energy
Print ISSN 0306-2619
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 309
Article Number 118384


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