Optimizing Water Conservation Strategies and Blockchain Integration in High-Water Consumption Industries Across Diverse Power Structures: A Differential Game Approach

In the context of blockchain technology facilitating sustainable development in industries with high water consumption, this study constructs a differential game model for the operations of such industries, based on their current product manufacturing and sales scenarios. Our analysis centers on four distinct scenarios, each representing a unique amalgamation of power dynamics and blockchain integration. We selected the production and sales processes of Shanghai K Textile Company as our case study, conducting an exhaustive simulation analysis. Our research emphasizes the critical role of collaborative decision-making among industry stakeholders. Such cooperation encourages high-water users to invest in water conservation measures, enhancing the water-saving properties of their products by approximately 85%. This mode has led to a substantial increase in market demand and overall industry revenue, improving by more than 1.6 times under conditions of Pareto optimality. Notably, in environments where consumer skepticism is pronounced (exceeding 0.067), blockchain technology proves to be an effective solution. It serves as a potent mechanism that motivates enterprises with high water usage to bolster their water conservation efforts, thus significantly improving product water efficiency. Furthermore, our study identifies the economic conditions under which retailers are likely to adopt blockchain technology. These insights offer valuable guidance for promoting sustainable development in water-intensive industries.