Competition between Green and Non-Green Products in the Blockchain Era

​Blockchain technology has been used to certify the green level of green products, which changes the competitive landscape between green and non-green products. We develop two pricing models to address the issue about the competition between green and non-green products, where one concerns a blockchain-enabled green product manufacturer that applies blockchain to certify the green level of its product, and the other concerns a non-green product manufacturer. We find that the blockchain-enabled green product manufacturer does not benefit from increasing consumers that tend to buy the green product. In fact, the increase in such consumers intensifies the competition between the green and non-green products. We also find that although blockchain adoption can mitigate such competition, blockchain-enabled certification does not necessarily increase the competitiveness of the green product. In addition, all the robustness of the results are confirmed under extended models.