scholarly journals Research on Dynamic and Complexity of Duopoly Price Strategies between Low-Carbon and Nonlow-Carbon Products under Cap-and-Trade Policies

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-25
Author(s):  
Ling Zhang ◽  
Zheng Zhang
Keyword(s):  
Market Power ◽  
Carbon Emission ◽  
Chaos Control ◽  
Control Method ◽  
Market Competition ◽  
Trade Policies ◽  
Low Carbon ◽  
Cap And Trade ◽  
Power Structures ◽  
Pricing System

This paper studies the complexity of the pricing system for the production of low-carbon and nonlow-carbon products in a market composed of duopoly manufacturers under the cap-and-trade policies. Through nonlinear system theory and numerical derivation and simulation, it considers the influence of different market power structures, carbon trading prices, consumer environmental awareness, and other factors on price decisions, carbon emission decisions, profits, and system stability. The influence of price adjustment parameters and unit product carbon emission decision adjustment parameters on the complexity of the pricing system under different market power structures is analyzed. And, it was found that compared with the variable feedback chaos control method, the parameter adjustment chaos control method is more effective in controlling the pricing system in this paper. Our research provides management implications for market competition and operational decision-making for low-carbon and nonlow-carbon products.

scholarly journals Optimal Pricing, Ordering, and Coordination for Prefabricated Building Supply Chain with Power Structure and Flexible Cap-and-Trade

Mathematics ◽  
2021 ◽  
Vol 9 (19) ◽  
pp. 2426
Author(s):  
Wen Jiang ◽  
Menglin Liu ◽  
Lu Gan ◽  
Chong Wang
Keyword(s):  
Supply Chain ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Power Structure ◽  
Supply Chain Performance ◽  
Low Carbon ◽  
Cap And Trade ◽  
Power Structures ◽  
Carbon Emission Reduction ◽  
Prefabricated Building

Under the increasing pressure of global emission reduction, prefabricated buildings are becoming more and more popular. As prefabricated building manufacturers and assemblers are emerging in the market, how do they make decisions of pricing, ordering, and emission reduction? In this paper, game theory is used to make the decisions for the prefabricated building supply chain with flexible cap-and-trade and different power structures, i.e., using prefabricated building manufacturers as the leader, using the vertical Nash equilibrium, and using prefabricated building assemblers as the leader. The two-part tariff contract is designed to coordinate the supply chain and to improve the supply chain performance. Moreover, we discuss the influence of different power structures and the two-part tariff contract on the optimal decisions and profits. Finally, numerical analysis is used to verify the conclusions. This indicates that the supply chain leaders will gain a higher profit and that the power structure has a significant influence on the two-part tariff contract, which will result in an unfair distribution of profit. High carbon trading prices benefit carbon emission reduction. Consumer low-carbon awareness has a positive effect on carbon emission reduction and supply chain performance.

scholarly journals Pricing Strategy and Carbon Emission Abatement under Cap-and-Trade Regulation Considering Social Learning

2019 ◽  
Vol 2019 ◽  
pp. 1-17 ◽  
Author(s):  
Bin Chen ◽  
Man Yu
Keyword(s):  
Social Learning ◽  
Carbon Emission ◽  
Pricing Strategy ◽  
High Price ◽  
Low Carbon ◽  
Cap And Trade ◽  
Carbon Product ◽  
Trade Regulation ◽  
Emission Abatement ◽  
Period 2

In an uncertainty market, social learning plays a significant role in obtaining information to make better decisions. Under cap-and-trade regulation, this paper aims to investigate firms’ pricing and carbon emission abatement issues considering the impact of social learning. This paper establishes a two-period model in a market consisting of a manufacturer and heterogeneous consumers. The manufacturer produces two alternatives (ordinary product and low-carbon product) and makes decisions on sales prices and carbon emission abatement levels. Consumers make decisions on whether and which product to buy. Consumers are not sure about their valuations of products and have the opportunity to discover their true valuation by social learning. The results show that the emission abatement level on ordinary product is affected by the pricing strategy for both types of products. However, the emission abatement level on low-carbon product is only affected by its own pricing strategy. It also shows that social learning lowers the emission abatement level on ordinary product, whereas it improves the emission abatement level on low-carbon product when charging a high price for low-carbon product. Moreover, the price of ordinary product in period 1 is no less than that in period 2. In contrast, the price of low-carbon product in period 2 is higher than that in period 1.

scholarly journals A Flexible Cap-and-Trade Policy and Limited Demand Information Effects on a Sustainable Supply Chain

2021 ◽  
Vol 13 (19) ◽  
pp. 10746
Author(s):  
Ying Gao ◽  
Jianteng Xu ◽  
Huixin Xu
Keyword(s):  
Trade Policy ◽  
Carbon Emission ◽  
Stackelberg Game ◽  
The Other ◽  
Limited Information ◽  
Low Carbon ◽  
Cap And Trade ◽  
Distribution Free ◽  
Demand Information ◽  
Limited Demand

Carbon emission reduction is increasingly becoming a public consensus, with governments formulating carbon emission policies, enterprises investing in emission abatement equipment, and consumers having a low-carbon preference. On the other hand, it is difficult for industry managers to obtain all the demand information. Based on this, this paper aims to investigate operations and coordination for a sustainable system with a flexible cap-and-trade policy and limited demand information. Newsvendor and distribution-free newsvendor models are formulated to show the validity of limited information. Stackelberg game is exploited to derive optimal abatement and order quantity solutions under centralized and decentralized systems. The revenue-sharing and two-part tariff contracts are then proposed to coordinate the decentralized system with limited demand information. Numerical analyses complement the theoretical results. We list some major findings. Firstly, we discover that using abatement equipment can effectively reduce emissions and increase profits. Secondly, the distribution-free approach is effective and acceptable for a system where only mean and variance information is informed. Thirdly, the mean parameter has a greater impact on profits and emissions comparing with the other seven parameters. Finally, we show that both contracts may achieve perfect coordination, and the two-part tariff contract is more robust.

scholarly journals Module-Based Product Configuration Decisions Considering Both Economical and Carbon Emission-Related Environmental Factors

2020 ◽  
Vol 12 (3) ◽  
pp. 1145
Author(s):  
Dong Yang ◽  
Jia Li ◽  
Bill Wang ◽  
Yong-ji Jia
Keyword(s):  
Carbon Emission ◽  
Green Manufacturing ◽  
Mixed Integer ◽  
Product Configuration ◽  
Integer Programming Problem ◽  
Low Carbon ◽  
Cap And Trade ◽  
Decision Supporting ◽  
Emission Regulation ◽  
Configuration Problem

With an increasing demand for green and environmentally friendly products, configuring a customized product from modular product design to satisfy both individualized customer requirements and environment restrictions has become a vital task for mass customization. In this paper, we addressed a module-based product configuration problem under carbon emission regulation, i.e., carbon cap-and-trade schema. The configuration problem under carbon cap-and-trade schema was formulated as a mixed-integer programming problem. Due to the NP-hard characteristics of the model, a genetic algorithm was employed to solve the configuration problems under carbon cap-and-trade. Experiments were carried out to analyze the effects of carbon emissions on product configuration decisions and carbon purchasing decisions. As a result, the range for carbon emission cap is suggested for both manufacturers and government agency, which provides the decision supporting for both customized and low-carbon production and green manufacturing.

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