Pooling credit

Introduction
The project is based on the relevance and application of the system to enable small scale
growers to group/pool carbon credit and trade via online tools. One of the most effective
ways to pool carbon is through digital technology, especially mobile application (Nogia,
Sidhu, Mehrotra, & Mehrotra, 2016). It is the most potential approach to increase the carbon
pooling credit among the small scale farmer. It is an approach which allows individual to
develop user profile over the mobile app for pooling credit and allow to be a member of the
group and contribute carbon credit.

Problem statement
Emission of carbon is the most critical environmental problem; it is the major reason for
increasing climate change and the greenhouse effect (Demirbas, Bozbas, & Balat, 2004).
Farming is among the industry which is responsible for the extensive amount of carbon
emission. The research intends to investigate the problem of carbon issue and determine the
application of carbon credit pooling approach.

Research objectives
The general objective of the research is to measure the relevance and application of pooling
credit system to enable small scale growers to group/pool carbon credit and trade via online
tools.

Pooling Credit method

Dependent Variable
Online Pooling

Online carbon trading is a mixed component of various carbon pooling approach. It is a

blockchain model for carbon credit (Kim & Huh, 2020). It is one of the most reasonable,
realistic and feasible methods for pooling credit. It is a system which enables the individual
member to participate in a carbon market through the use of the mobile application. In this
system, the individual member can develop their user profile and participate in the carbon
market and pooling credit.

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Independent Variable
Smart Contract

One of the most used methods of contributing to the reduction of carbon emission and to
increase pooling credit is through a contract. It is a process through in which individual
farmers for a contract with a group to purchase a carbon permit. A smart contract is a process
to develop a user profile over a mobile application that regulates the carbon market based on
various policy and protocol such as the Kyoto protocol. Through the smart contract, the
carbon footprint of every individual farmer is monitored (Loyarte-López, Barral, & Morla,
2020). This process allows an individual to purchase and use limited carbon as well as
contribute in carbon pooling.

Smart Carbon Credit

A carbon credit is a permit that allows the holding company or individual member to emit a
certain amount of carbon when operating a business. One credit permit is equal to one ton of
carbon. So, when purchasing carbon, even an individual member needs to purchase in mass.
But a pooling credit can be used to control the carbon trading. Through a smart carbon credit,
the individual member is allowed to purchase a small amount of carbon credit from a group
and even allow to contribute excessive carbon credit in a credit/pool. The smart carbon credit
mates this process realistic and relatively easy for small farmer another small member in an
economy.

Carbon Token

Carbon token is retail assessable carbon credit. The process of breaking down entire carbon
credit is a small number so that it can be easily accessed by small farmers and another
industry group. This limits the action/requirement of small users to purchase a carbon on a
massive scale. The small economy group can easily access the required amount of carbon
permits through carbon token use. This limits the trading and use of carbon through an
effective controlling measure (Organisation for Economic Coperation and Development and
World Bank Group, 2015).

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Figure 1: Block chain model

The above figure represents the application of the online pooling credit. The entire system is
divided into three block chain including retain unit, back end unit and ecosystem. Each of the
units consists of an individual function. This is a dynamic and innovative approach of pooling
credit for the small economy units.

Conceptual Model

Dependent variable Independent variables

Online pooling/mobile
application Smart contract

Carbon credit

Carbon token

Figure 2: Conceptual model

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Methodology

The research is focused on examining the relevance and application of online approach for
management of carbon credit in carbon market. The research emphasis on the use of
qualitative as well as quantitative approach. The major objective of the project is to
investigate the application and potential of the online method for carbon credit. The research
will provide a detail analysis on the block chain model of carbon credit. The research will be
based on the overall report developed for carbon credit. The variables that the research will
investigate include independent variable online poling/mobile application and independent
variables smart contract, carbon credit and carbon token. The research will focus on the
collection and analysis of secondary data and information from online sources.

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References
Demirbas, M. F., Bozbas, K., & Balat, M. (2004). Carbon Dioxide Emission Trends and
Environmental Problems in Turkey. Energy Exploration and Exploitation, 22(5), 355–
366. https://doi.org/10.1260/0144598043026464
Johnston, M. (2014). Secondary Data Analysis: A Method of Which the Time has Come.
Qualitative and Quantitative Methods in Libraries, 3(3), 619–626. Retrieved from
https://www.researchgate.net/publication/294718657_Secondary_Data_Analysis_A_Me
thod_of_Which_the_Time_has_Come
Kim, S. K., & Huh, J. H. (2020). Blockchain of carbon trading for UN Sustainable
Development Goals. Sustainability (Switzerland), 12(10), 1–32.
https://doi.org/10.3390/SU12104021
Loyarte-López, E., Barral, M., & Morla, J. C. (2020). Methodology for carbon footprint
calculation towards sustainable innovation in intangible assets. Sustainability
(Switzerland), 12(4), 1–14. https://doi.org/10.3390/su12041629
Nogia, P., Sidhu, G. K., Mehrotra, R., & Mehrotra, S. (2016). Capturing Atmospheric
Carbon: Biological and Nonbiological Methods. International Journal of Low-Carbon
Technologies, 11(2), 266–274. https://doi.org/https://doi.org/10.1093/ijlct/ctt077
Organisation for Economic Coperation and Development and World Bank Group. (2015).
The FASTER Principles for Successful Carbon Pricing: An approach based on initial
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