Clearing for Environmental Contracts
Stuart School of Business research presentation by: Assistant Professor of Analytics Andrew Kumiega
Clearing for Environmental Contracts
- Assistant Professor of Analytics Andrew Kumiega
Abstract:
We discuss the use of blockchain to remove counterparty risk and guarantee the delivery of a valid RIN issued for electricity generation from biogas and used in an electric vehicle (eRIN). The blockchain structure provides financial guarantees to the eRIN purchaser if the EPA invalidates the eRIN later. The concept of using a blockchain-driven clearing mechanism to validate and financially guarantee an eRIN is a new concept. This new concept is like clearing commodity transactions where the specifications and the delivery of the commodity are insured to the future delivery date of the contract. Therefore, to allow small biogas/electricity producers to create eRINs, a new clearing system must be developed.
All Illinois Tech faculty, students, and staff are invited to attend.
The Friday Research Presentations series showcases ongoing academic research projects conducted by Stuart School of Business faculty and students, as well as guest presentations by Illinois Tech colleagues, business professionals, and faculty from other leading business schools.
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