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Purpose

The study aims to investigate the impacts of Energy Service Companies (ESCOs) and blockchain adoption decisions on the profits and of the supply chain members and emission reductions.

Design/methodology/approach

A Stackelberg game model consisting of a manufacturer, retailer and ESCO is formulated and analyzed. When selecting emission reduction methods, the manufacturer must consider the impact of retailer’s blockchain adoption decisions, while retailers similarly determine whether to adopt blockchain based on manufacturer’s strategic choices.

Findings

When the retailer adopts blockchain technology, the manufacturer is more inclined to choose ESCO to conduct emissions reduction (ER) even if the cost advantage of the ESCO is not that significant. The adoption of blockchain motivates the manufacturer to make greater efforts in ER. When the manufacturer makes greater efforts in ER, the retailer is more inclined to display ER efforts to attract more consumers by establishing a blockchain system.

Originality/value

(1) The study innovatively explores the interaction between blockchain-enabled indirect emission reduction and ESCO’s direct emission reduction, revealing their differentiated impacts on supply chain decisions. (2) The research pioneers the investigation of how retailer’s blockchain adoption decisions influence manufacturers’s different emission reduction approaches, particularly analyzing how blockchain implementation alters the cost–benefit equilibrium between technological transparency and third-party ESCO collaboration.

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