Consumer-centric decarbonization framework using Stackelberg game and Blockchain

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

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

3 Downloads (Pure)


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%.
Original languageEnglish
Article number118384
Number of pages14
JournalApplied Energy
Early online date7 Jan 2022
Publication statusPublished - 1 Mar 2022


Dive into the research topics of 'Consumer-centric decarbonization framework using Stackelberg game and Blockchain'. Together they form a unique fingerprint.

Cite this