The Theoretical Framework and Application of Cross-Border Timber Traceability Based on Blockchain Technology

Yuanhui Hu; Xinjian Luo; Qian Meng; Yinfeng Li

doi:doi:10.11648/j.ajere.20220703.15

| Peer-Reviewed

The Theoretical Framework and Application of Cross-Border Timber Traceability Based on Blockchain Technology

Yuanhui Hu, Xinjian Luo, Qian Meng, Yinfeng Li

Published in American Journal of Environmental and Resource Economics (Volume 7, Issue 3)

Received: 1 August 2022 Accepted: 19 August 2022 Published: 29 August 2022

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

It is widely understood that the legal and sustainable supply of timber contributes to promoting the sustainable management of forests, addressing climate change and serving the poor in communities. The legality of origins of timber has continuously been an international concern for the past two decades. At present, timber traceability verification methods mainly rely on offline investigation including on-site audits, document verification, expert review, and have obvious disadvantages such as fraud, false claim, and "mixed products". Blockchain technology with the advantages of openness, tamper-proof, anonymity, and automated execution etc. can be a good method to solve the above-mentioned problems, and eventually to improve the transparency of timber supply chain, reduce the costs of legality certification, and improve the reliability of timber tracing methods. In this study, the blockchain technology is applied in the cross-border timber traceability. Based on the blockchain method, a cross-border timber tracing system is designed, including the application context, main participants, the traceability system and operation flowchart. It’s found that a consortium chain formed by timber enterpirses, gorvenments and the third-party verification agencies is a feasible way to conduct the cross-border timber traceability when using the blockchain technology. The above-mentioned participants form a consortium chain and through the unified consensus and technical control, a cross-border timber traceability ecosystem with mutual trust, risk control, and credit-based circulation is established. Throughout the timber trade process, the forest owners, sawmills, exporters, importers, and processing plants input, in sequence, the data required for transactions and traceability. The forestry authorities, customs and other regulatory authorities in both the import and the export countries supervise cross-border timber trade, and strengthen the control of illegal timber. The third-party verification agencies view and verify the data reported by the timber enterprises. Meanwhile, four key issues in applying blockchain to cross-border timber traceability were identified, such as clarity of the implementing entities, need of the incentive mechanisms, balancing construction costs and small business burden, and forming the industry standards and regulatory practices. These methods and issues addressed provides theoretical and application basis for the development and operation of the traceability system. It is promising for the development of the blockchain-based traceability system to speed up its growth given the increasing demand for efficient and credible traceability for the wood industry.

Published in	American Journal of Environmental and Resource Economics (Volume 7, Issue 3)
DOI	10.11648/j.ajere.20220703.15
Page(s)	97-106
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Blockchain Technology, Timber Traceability, Cross-Border Timber Trade

References

[1]	Wang J., Luo X. Li M., Li Y, 2021. Exploration on the application of blockchain technology in timber legality traceability—taking the Republic of Gabon as an example [J]. World Forestry Research, 34 (1), 124-129.
[2]	Cheng B. and Li L., 2016. Illegal logging, transnational timber legality assurance system and related trade: progress, challenges and countermeasures [J]. International Trade, 27, 38-42.
[3]	Chen Y, 2012. Study on China's Timber Legality Verification Scheme [M]. Beijing: China Forestry Publishing House, 2-57.
[4]	Li J., Xu B., He Q., Zhang C., 2020. Comparison of Legislative Elements of Timber Legality Regulations Across the World and Its Enlightenmen [J]. World Forestry Research, 6, 9-14.
[5]	Li Jianquan, Chen Shaozhi, Xu Bin. Countermeasures and Suggestions for China to Address Trade Regulations Related to Illegal Timber Logging [J]. International Wood Industry, 2014, 44 (8): 1-3.
[6]	Mehrdokht Pournader, Yangyan Shi, Stefan Seuring, S. C. Lenny Koh. Blockchain applications in supply chains, transport and logistics: a systematic review of the literature [J]. International Journal of Production Research. 2020 (7).
[7]	Ba Shusong, Zhu Yuanqian, Qiao Ruoyu, Wang Ke. New Era of Blockchain: Empowering Financial Scenarios [M]. Beijing: Science Press. 2019: 1-28.
[8]	Zou Jun, Zhang Haining, Tang Yi, etc. Guide for Blockchain Technology [M]. Beijing: China Machine Press, 2016: 1-46.
[9]	Don Tapscott [Canada], Alex Tapscott [Canada]. Blockchain Revolution [M]. Beijing: CITIC Publishing Group, 2016: 1-55.
[10]	Li Gang, Fu Mingliang. Application of Blockchain Technology in Supply Chain: Theoretical Review and Research Outlook [J]. Supply Chain Management. 2021, 2 (11): 21-34.
[11]	D. Jeyabharathi, D. Kesavaraja, D. Sasireka, 2020. Handbook of Research on Blockchain Technology, 171-181.
[12]	Gao Zhihao. Description of public chain and consortium chain [J]. Gold Card Project, 2017, (3): 35-39.
[13]	Kim Sundtoft Hald, Aseem Kinra. How the blockchain enables and constrains supply chain performance [J]. International Journal of Physical Distribution & Logistics Management. 2019 (4).
[14]	KEN A. Digital blockchain networks appear to be following Metcalfe’s Law [J]. Electronic Commerce Research and Applications, 2017, 24: 23-29.
[15]	Ma Shuang, Tian Minghua, Li Ruida, Wei Tong, Zhang Yizhi. Evaluation and Enlightenment of Strategies for Responding to Timber Legality Requirements from the Perspective of Chinese Forest Products Exporters [J]. World Forestry Research, 2020, 33 (4): 62-64.
[16]	Zhang Yanhua, Yang Zhaoxin, Yang Ruizhe, Jin Kai, Lin Bo, Si Pengbo. Blockchain-based Agricultural Product Traceability System [J]. Technology Intelligence Engineer, 2018, 4 (3): 4-13.
[17]	Sachin S. Kamble, Angappa Gunasekaran, Rohit Sharma. Modeling the blockchain enabled traceability in agriculture supply chain [J]. International Journal of Information Management. 2020 (prep).
[18]	Li Mingjia, Wang Deng, Zeng Xiaoshan, Bai Qianlan, Sun Yaojie. Design of Blockchain Based Food Safety Traceability System [J]. Food Science, 2019, 40 (3): 279-285.
[19]	Xiao Li, Tan Xing, Xie Peng, Tian Yan, Wen Chuanbiao. Research on Blockchain based Traceability System of Traditional Chinese Medicine [J]. Shizhen journal of traditional Chinese medicine research, 2017, 28 (11): 2762-2764.
[20]	Andreas Kamilaris, Agusti Fonts, Francesc X. The rise of blockchain technology in agriculture and food supply chains [J]. Prenafeta-Bold?. Trends in Food Science & Technology. 2019 (C).
[21]	Liu Yang. Blockchain Finance - Technical Reform Reshapes the Future of Finance [M]. Beijing: Peking University Press, 2019: 1-16.
[22]	Yanling Chang, Eleftherios Iakovou, Weidong Shi. Blockchain in global supply chains and cross border trade: a critical synthesis of the state-of-the-art, challenges and opportunities [J]. International Journal of Production Research. 2020 (7).
[23]	Tom Serres and Bettina Warburg. Introducing Asset Chains: The Congitive, Friction-free and Blockchain-enable Future of Supply Chains [R]. Blockchain Research Institute, November 2017, 28.

Cite This Article

Plain Text BibTeX RIS

APA Style

Yuanhui Hu, Xinjian Luo, Qian Meng, Yinfeng Li. (2022). The Theoretical Framework and Application of Cross-Border Timber Traceability Based on Blockchain Technology. American Journal of Environmental and Resource Economics, 7(3), 97-106. https://doi.org/10.11648/j.ajere.20220703.15

Copy | Download

ACS Style

Yuanhui Hu; Xinjian Luo; Qian Meng; Yinfeng Li. The Theoretical Framework and Application of Cross-Border Timber Traceability Based on Blockchain Technology. Am. J. Environ. Resour. Econ. 2022, 7(3), 97-106. doi: 10.11648/j.ajere.20220703.15

Copy | Download

AMA Style

Yuanhui Hu, Xinjian Luo, Qian Meng, Yinfeng Li. The Theoretical Framework and Application of Cross-Border Timber Traceability Based on Blockchain Technology. Am J Environ Resour Econ. 2022;7(3):97-106. doi: 10.11648/j.ajere.20220703.15

Copy | Download

@article{10.11648/j.ajere.20220703.15,
  author = {Yuanhui Hu and Xinjian Luo and Qian Meng and Yinfeng Li},
  title = {The Theoretical Framework and Application of Cross-Border Timber Traceability Based on Blockchain Technology},
  journal = {American Journal of Environmental and Resource Economics},
  volume = {7},
  number = {3},
  pages = {97-106},
  doi = {10.11648/j.ajere.20220703.15},
  url = {https://doi.org/10.11648/j.ajere.20220703.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajere.20220703.15},
  abstract = {It is widely understood that the legal and sustainable supply of timber contributes to promoting the sustainable management of forests, addressing climate change and serving the poor in communities. The legality of origins of timber has continuously been an international concern for the past two decades. At present, timber traceability verification methods mainly rely on offline investigation including on-site audits, document verification, expert review, and have obvious disadvantages such as fraud, false claim, and "mixed products". Blockchain technology with the advantages of openness, tamper-proof, anonymity, and automated execution etc. can be a good method to solve the above-mentioned problems, and eventually to improve the transparency of timber supply chain, reduce the costs of legality certification, and improve the reliability of timber tracing methods. In this study, the blockchain technology is applied in the cross-border timber traceability. Based on the blockchain method, a cross-border timber tracing system is designed, including the application context, main participants, the traceability system and operation flowchart. It’s found that a consortium chain formed by timber enterpirses, gorvenments and the third-party verification agencies is a feasible way to conduct the cross-border timber traceability when using the blockchain technology. The above-mentioned participants form a consortium chain and through the unified consensus and technical control, a cross-border timber traceability ecosystem with mutual trust, risk control, and credit-based circulation is established. Throughout the timber trade process, the forest owners, sawmills, exporters, importers, and processing plants input, in sequence, the data required for transactions and traceability. The forestry authorities, customs and other regulatory authorities in both the import and the export countries supervise cross-border timber trade, and strengthen the control of illegal timber. The third-party verification agencies view and verify the data reported by the timber enterprises. Meanwhile, four key issues in applying blockchain to cross-border timber traceability were identified, such as clarity of the implementing entities, need of the incentive mechanisms, balancing construction costs and small business burden, and forming the industry standards and regulatory practices. These methods and issues addressed provides theoretical and application basis for the development and operation of the traceability system. It is promising for the development of the blockchain-based traceability system to speed up its growth given the increasing demand for efficient and credible traceability for the wood industry.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - The Theoretical Framework and Application of Cross-Border Timber Traceability Based on Blockchain Technology
AU  - Yuanhui Hu
AU  - Xinjian Luo
AU  - Qian Meng
AU  - Yinfeng Li
Y1  - 2022/08/29
PY  - 2022
N1  - https://doi.org/10.11648/j.ajere.20220703.15
DO  - 10.11648/j.ajere.20220703.15
T2  - American Journal of Environmental and Resource Economics
JF  - American Journal of Environmental and Resource Economics
JO  - American Journal of Environmental and Resource Economics
SP  - 97
EP  - 106
PB  - Science Publishing Group
SN  - 2578-787X
UR  - https://doi.org/10.11648/j.ajere.20220703.15
AB  - It is widely understood that the legal and sustainable supply of timber contributes to promoting the sustainable management of forests, addressing climate change and serving the poor in communities. The legality of origins of timber has continuously been an international concern for the past two decades. At present, timber traceability verification methods mainly rely on offline investigation including on-site audits, document verification, expert review, and have obvious disadvantages such as fraud, false claim, and "mixed products". Blockchain technology with the advantages of openness, tamper-proof, anonymity, and automated execution etc. can be a good method to solve the above-mentioned problems, and eventually to improve the transparency of timber supply chain, reduce the costs of legality certification, and improve the reliability of timber tracing methods. In this study, the blockchain technology is applied in the cross-border timber traceability. Based on the blockchain method, a cross-border timber tracing system is designed, including the application context, main participants, the traceability system and operation flowchart. It’s found that a consortium chain formed by timber enterpirses, gorvenments and the third-party verification agencies is a feasible way to conduct the cross-border timber traceability when using the blockchain technology. The above-mentioned participants form a consortium chain and through the unified consensus and technical control, a cross-border timber traceability ecosystem with mutual trust, risk control, and credit-based circulation is established. Throughout the timber trade process, the forest owners, sawmills, exporters, importers, and processing plants input, in sequence, the data required for transactions and traceability. The forestry authorities, customs and other regulatory authorities in both the import and the export countries supervise cross-border timber trade, and strengthen the control of illegal timber. The third-party verification agencies view and verify the data reported by the timber enterprises. Meanwhile, four key issues in applying blockchain to cross-border timber traceability were identified, such as clarity of the implementing entities, need of the incentive mechanisms, balancing construction costs and small business burden, and forming the industry standards and regulatory practices. These methods and issues addressed provides theoretical and application basis for the development and operation of the traceability system. It is promising for the development of the blockchain-based traceability system to speed up its growth given the increasing demand for efficient and credible traceability for the wood industry.
VL  - 7
IS  - 3
ER  -

Copy | Download

Author Information

Yuanhui Hu

Department of International Cooperation, Nation Forestry and Grassland Administration, Beijing, China
Xinjian Luo

Research Institute of Forestry Policy and Information, Chinese Academy of Forestry, Beijing, China
Qian Meng

Research Institute of Forestry Policy and Information, Chinese Academy of Forestry, Beijing, China
Yinfeng Li

Secretariat of the Global Green Supply Chain Initiative (GGSC), Beijing, China

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Yuanhui Hu, Xinjian Luo, Qian Meng, Yinfeng Li. (2022). The Theoretical Framework and Application of Cross-Border Timber Traceability Based on Blockchain Technology. American Journal of Environmental and Resource Economics, 7(3), 97-106. https://doi.org/10.11648/j.ajere.20220703.15

Copy | Download

ACS Style

Yuanhui Hu; Xinjian Luo; Qian Meng; Yinfeng Li. The Theoretical Framework and Application of Cross-Border Timber Traceability Based on Blockchain Technology. Am. J. Environ. Resour. Econ. 2022, 7(3), 97-106. doi: 10.11648/j.ajere.20220703.15

Copy | Download

AMA Style

Yuanhui Hu, Xinjian Luo, Qian Meng, Yinfeng Li. The Theoretical Framework and Application of Cross-Border Timber Traceability Based on Blockchain Technology. Am J Environ Resour Econ. 2022;7(3):97-106. doi: 10.11648/j.ajere.20220703.15

Copy | Download

@article{10.11648/j.ajere.20220703.15,
  author = {Yuanhui Hu and Xinjian Luo and Qian Meng and Yinfeng Li},
  title = {The Theoretical Framework and Application of Cross-Border Timber Traceability Based on Blockchain Technology},
  journal = {American Journal of Environmental and Resource Economics},
  volume = {7},
  number = {3},
  pages = {97-106},
  doi = {10.11648/j.ajere.20220703.15},
  url = {https://doi.org/10.11648/j.ajere.20220703.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajere.20220703.15},
  abstract = {It is widely understood that the legal and sustainable supply of timber contributes to promoting the sustainable management of forests, addressing climate change and serving the poor in communities. The legality of origins of timber has continuously been an international concern for the past two decades. At present, timber traceability verification methods mainly rely on offline investigation including on-site audits, document verification, expert review, and have obvious disadvantages such as fraud, false claim, and "mixed products". Blockchain technology with the advantages of openness, tamper-proof, anonymity, and automated execution etc. can be a good method to solve the above-mentioned problems, and eventually to improve the transparency of timber supply chain, reduce the costs of legality certification, and improve the reliability of timber tracing methods. In this study, the blockchain technology is applied in the cross-border timber traceability. Based on the blockchain method, a cross-border timber tracing system is designed, including the application context, main participants, the traceability system and operation flowchart. It’s found that a consortium chain formed by timber enterpirses, gorvenments and the third-party verification agencies is a feasible way to conduct the cross-border timber traceability when using the blockchain technology. The above-mentioned participants form a consortium chain and through the unified consensus and technical control, a cross-border timber traceability ecosystem with mutual trust, risk control, and credit-based circulation is established. Throughout the timber trade process, the forest owners, sawmills, exporters, importers, and processing plants input, in sequence, the data required for transactions and traceability. The forestry authorities, customs and other regulatory authorities in both the import and the export countries supervise cross-border timber trade, and strengthen the control of illegal timber. The third-party verification agencies view and verify the data reported by the timber enterprises. Meanwhile, four key issues in applying blockchain to cross-border timber traceability were identified, such as clarity of the implementing entities, need of the incentive mechanisms, balancing construction costs and small business burden, and forming the industry standards and regulatory practices. These methods and issues addressed provides theoretical and application basis for the development and operation of the traceability system. It is promising for the development of the blockchain-based traceability system to speed up its growth given the increasing demand for efficient and credible traceability for the wood industry.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - The Theoretical Framework and Application of Cross-Border Timber Traceability Based on Blockchain Technology
AU  - Yuanhui Hu
AU  - Xinjian Luo
AU  - Qian Meng
AU  - Yinfeng Li
Y1  - 2022/08/29
PY  - 2022
N1  - https://doi.org/10.11648/j.ajere.20220703.15
DO  - 10.11648/j.ajere.20220703.15
T2  - American Journal of Environmental and Resource Economics
JF  - American Journal of Environmental and Resource Economics
JO  - American Journal of Environmental and Resource Economics
SP  - 97
EP  - 106
PB  - Science Publishing Group
SN  - 2578-787X
UR  - https://doi.org/10.11648/j.ajere.20220703.15
AB  - It is widely understood that the legal and sustainable supply of timber contributes to promoting the sustainable management of forests, addressing climate change and serving the poor in communities. The legality of origins of timber has continuously been an international concern for the past two decades. At present, timber traceability verification methods mainly rely on offline investigation including on-site audits, document verification, expert review, and have obvious disadvantages such as fraud, false claim, and "mixed products". Blockchain technology with the advantages of openness, tamper-proof, anonymity, and automated execution etc. can be a good method to solve the above-mentioned problems, and eventually to improve the transparency of timber supply chain, reduce the costs of legality certification, and improve the reliability of timber tracing methods. In this study, the blockchain technology is applied in the cross-border timber traceability. Based on the blockchain method, a cross-border timber tracing system is designed, including the application context, main participants, the traceability system and operation flowchart. It’s found that a consortium chain formed by timber enterpirses, gorvenments and the third-party verification agencies is a feasible way to conduct the cross-border timber traceability when using the blockchain technology. The above-mentioned participants form a consortium chain and through the unified consensus and technical control, a cross-border timber traceability ecosystem with mutual trust, risk control, and credit-based circulation is established. Throughout the timber trade process, the forest owners, sawmills, exporters, importers, and processing plants input, in sequence, the data required for transactions and traceability. The forestry authorities, customs and other regulatory authorities in both the import and the export countries supervise cross-border timber trade, and strengthen the control of illegal timber. The third-party verification agencies view and verify the data reported by the timber enterprises. Meanwhile, four key issues in applying blockchain to cross-border timber traceability were identified, such as clarity of the implementing entities, need of the incentive mechanisms, balancing construction costs and small business burden, and forming the industry standards and regulatory practices. These methods and issues addressed provides theoretical and application basis for the development and operation of the traceability system. It is promising for the development of the blockchain-based traceability system to speed up its growth given the increasing demand for efficient and credible traceability for the wood industry.
VL  - 7
IS  - 3
ER  -

Copy | Download