Toward ethical and sustainable peer-to-peer energy trading: insights from Islamic finance principles

Ariffin, Muhammad Irwan and Mohamad Hanif, Noor Hazrin Hany (2026) Toward ethical and sustainable peer-to-peer energy trading: insights from Islamic finance principles. In: Islamic Finance, Energy Transition and Sustainability. Series in Energy Transition, Carbon Neutrality, and Sustainability, 4 . World Scientific Publishing Company, USA, pp. 325-355. ISBN 978-981-98-2199-0

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Abstract

The transition to decentralized renewable energy systems has gained significant attention, particularly through peer-to-peer (P2P) energy trading models that enable direct energy transactions between participants. While these systems offer technological and economic benefits, challenges persist in terms of social equity, technological accessibility, and ethical considerations. This chapter adopts a qualitative methodology based on a comprehensive literature review and meta-analysis and uniquely integrates Islamic finance principles, such as fairness, transparency, and risk-sharing, into the evaluation of P2P energy trading models. Through a review of pricing determination techniques and Islamic financial frameworks, a conceptual model is proposed to align decentralized energy markets with ethical financial practices. The findings offer policy insights for regulators and stakeholders, particularly in Muslim-majority regions, to develop inclusive and socially responsible energy trading systems that balance economic growth, environmental sustainability, and ethical values.

Item Type:	Book Chapter
Uncontrolled Keywords:	Peer-to-Peer (P2P) energy trading, decentralized renewable energy, Islamic finance principles, ethical energy markets, energy pricing mechanisms
Subjects:	BPC Science and Technology in Islam > BPC175 Islam and engineering. Sustainable engineering. Sustainable building BPH Islamic Economics > BPH830.3 Social systems. Urban groups. Cities and towns. Sustainable urban development T Technology > T Technology (General)
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Engineering > Department of Mechatronics Engineering Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Economics Kulliyyah of Engineering
Depositing User:	DR Noor Hazrin Hany Mohamad Hanif
Date Deposited:	15 May 2026 15:57
Last Modified:	15 May 2026 15:57
Queue Number:	2026-05-Q3341
URI:	http://irep.iium.edu.my/id/eprint/128978

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