scholarly journals Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation

2020 ◽  
Vol 12 (8) ◽  
pp. 3440
Author(s):  
Wensi Zhang ◽  
Jing Xiao ◽  
Lingfei Cai

Under the threat of global warming, joint emission reduction strategy has been widely adopted as an effective solution for the industry to guarantee environmental sustainability. In the practice of supply chain, environmental regulations and supply chain contracts are applied with the attempt to improve environmental performance. However, whether these measures are actually effective remains unanswered. In this paper, we study a supply chain with one manufacturer and one retailer adopting joint emission reduction strategy. We first investigate under what circumstance the environmental regulation can effectively result in higher emission reduction efforts. The result shows that when the cost coefficient satisfies certain conditions, the increase of penalty or subsidy can lead to more investment in emission reduction. In addition, if the environmental impact caused by the production process is extremely high, the enforcement of the regulation is ineffective. We also explore how the cost-revenue-sharing contract affects the emission reduction strategy and the coordination of the members in the supply chain. The results suggest that the incentive effect of environmental regulation is more effective when the supply chain coordination contract exists. Numerical experiments are also presented to verify our analytical conclusions.

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-17
Author(s):  
Yan Yin ◽  
Fengcai Liu

Due to the increasingly serious energy crisis and environmental pollution, new energy vehicle (NEV) as a environmentally-friendly travel tool has been vigorously developed by various countries. However, in 2020, China officially enters the “postsubsidy era” in which the carbon trading scheme will replace the current fiscal and taxation system, affecting the implementation of NEV. Under the carbon trading policy, it has gradually become a major issue how NEV companies achieve production revenue coordination and carbon emission optimization decisions. This study focuses on building a multilevel supply chain for NEV production, sales, and component recycling. In addition, this study establishes a Stackelberg game model dominated by NEV manufacturers and uses contracts to coordinate the model. Results are as follows: (1) With the increasing maturity and perfection of enterprises’ carbon emission reduction technology, consumers’ demand for new energy vehicles will increase, and the effect will be more obvious when the system centralized decision-making. (2) Since the centralized decision is aimed at the total profit of the system and has the advantage of optimal order quantity, the total benefit of the supply chain is higher than that of the decentralized decision. Moreover, if the cost coefficient of carbon emission reduction is small, the total benefit of the supply chain under the centralized decision will be more obvious. (3) From the perspective of each member of the supply chain, the profit change of the manufacturer is more sensitive to the change of order quantity compared with the cost coefficient of carbon emission reduction. When the cost of carbon emission reduction technology is too high, manufacturers may not have much incentive to carry out technological research and development and innovation, resulting in failure to achieve system optimization. (4) This study designed a revenue-cost-sharing contract coordination mechanism; that is, the retailer will provide part of the revenue to the manufacturer, and the manufacturer will provide recovery compensation to the recycler.


2015 ◽  
Vol 2015 ◽  
pp. 1-9 ◽  
Author(s):  
Huan Zhang ◽  
Yang Liu ◽  
Jingsi Huang

Supply chain coordination models are developed in a two-echelon supply chain with double sided disruptions. In a supply chain system, the supplier may suffer from the product cost disruption and the retailer suffers from the demand disruption simultaneously. The purpose of this study is to design proper supply chain contracts, under which the supply chain with double sided disruption can be coordinated. Firstly, the centralized decision-making models are applied to find the optimal price and quantity under three cases as the baseline. The different cases are divided by the different relationship between the product cost disruption and the demand disruption. Secondly, two different types of contracts are introduced to coordinate the whole supply chain. One is all-unit wholesale quantity discount policy (AQDP) contract, and the other one is capacitated linear pricing policy (CLPP) contract. And it is found out that the gap between the demand disruption and the product cost disruption is the key factor to influence the supply chain coordination. Some numerical examples and sensitivity analysis are given to illustrate the models. The AQDP contracts are listed out under different cases to show how to use it under double sided disruptions.


2022 ◽  
Vol 9 ◽  
Author(s):  
Fuqiang Wang ◽  
Huimin Li ◽  
Yongchao Cao ◽  
Chengyi Zhang ◽  
Yunlong Ran

Knowledge sharing (KS) in the green supply chain (GSC) is jointly determined by the KS efforts of suppliers and manufacturers. This study uses the differential game method to explore the dynamic strategy of KS and the benefits of emission reduction in the process of low carbon (LC) technology in the GSC. The optimal trajectory of the knowledge stock and emission reduction benefits of suppliers and manufacturers under different strategies are obtained. The validity of the model and the results are verified by numerical simulation analysis, and the sensitivity analysis of the main parameters in the case of collaborative sharing is carried out. The results show that in the case of centralized decision-making, the KS efforts of suppliers and manufacturers are the highest, and the knowledge stock and emission reduction benefits of GSC are also the best. The cost-sharing mechanism can realize the Pareto improvement of GSC’s knowledge stock and emission reduction benefits, but the cost-sharing mechanism can only increase the supplier’s KS effort level. In addition, this study found that the price of carbon trading and the rate of knowledge decay have a significant impact on KS. The study provides a theoretical basis for promoting KS in the GSC and LC technology innovation.


2021 ◽  
Author(s):  
Kanying Liu ◽  
Wei Li ◽  
Erbao Cao ◽  
Yong Lan

Abstract We study the pricing strategies of supply chains of green products under behaviour-based pricing. Considering consumer preferences for green product functional attributes and environmental attributes, we construct a two-stage supply chain. The optimal behaviour pricing of green products is solved, and the effects of green sensitivity and the cost coefficient on the optimal price are analysed. We find that when consumers are less sensitive to the greenness, with the increase in the market share of green products, green product retailers will increase the loyalty price. An increase in greenness sensitivity and a decrease in the greenness cost coefficient will increase the wholesale prices and retail prices of green products. Consumer attention to the greenness and a decrease in the initial market share of green products will be conducive to promoting the greenness and improving the environment. Consumers' emphasis on the greenness of their products will lead to higher profits for the manufacturers and retailers of green products.


2019 ◽  
Vol 11 (4) ◽  
pp. 1215 ◽  
Author(s):  
Wen Jiang ◽  
Wenfei Lu ◽  
Qianwen Xu

Cap-and-trade has become one of the most widely used carbon emission limitation methods in the world. Its constraints have a great impact on the carbon emission reduction decisions and production operations of supply chain enterprises, as well as profit distribution. In the construction supply chain, there are few studies on the profit distribution and emission reduction decisions considering cap-and-trade policy. This paper investigates the profit distribution model of a two-echelon construction supply chain consisting of a general contractor and a subcontractor with cap-and-trade policy. Using game theory and Shapley value method, the optimal emission reduction decisions and profit distribution under three cooperation modes of pure competition, co-opetition, and pure cooperation are obtained, respectively. The research shows that the profits of the construction supply chain are increasing in pure competition, co-opetition, and pure cooperation scenarios, and the emission reduction amount of the construction supply chain in the case of pure cooperation is greater than that of pure competition and co-opetition. The carbon emission reduction amount under the co-opetition scenario is not always greater than that under the pure competition scenario, which depends on the emission reduction cost coefficient relationship of general contractor and subcontractor. When the cost coefficient of emission reduction of the general contractor is less than that of the subcontractor, the emission reduction amount under pure competition is larger than that under co-opetition. A numerical study is carried out to verify the conclusions and illustrated the profits of the supply chain decreased with the increase of carbon emission reduction cost coefficient, and had nothing to do with the emission reduction efficiency of enterprises.


2016 ◽  
Vol 10 (7) ◽  
pp. 132
Author(s):  
Hooman Abdollahi ◽  
Mohammad Talooni

<p class="zhengwen"><span lang="EN-GB">In this paper three coordinating contracts in supply chain namely (i) revenue-sharing contract (ii) cost-sharing contract (iii) profit-sharing contract are proposed for two echelon supply chain coordination perspective under promotion and price sensitive demand. In our model buyer makes the promotional decision and undertakes the promotional sales effort cost. It is shown that in decentralized channel the results are sub-optimal. It is found analytically that the revenue-sharing contract coordinates pricing decision but not promotional decision for all values of the promotional effort cost. It is also found that the cost-sharing contract fails to coordinate channel. The profit-sharing contract is demonstrated to coordinate both the pricing and the promotional decisions in the channel.</span></p>


2013 ◽  
Vol 2013 ◽  
pp. 1-9 ◽  
Author(s):  
Sun Guohua

This paper develops a dynamic model in a one-supplier-one-retailer fresh agricultural product supply chain that experiences supply disruptions during the planning horizon. The optimal solutions in the centralized and decentralized supply chains are studied. It is found that the retailer’s optimal order quantity and the maximum total supply chain profit in the decentralized supply chain with wholesale price contract are less than that in the centralized supply chain. A two-part tariff contract is proposed to coordinate the decentralized supply chain with which the maximum profit can be achieved. It is found that the optimal wholesale price should be a decreasing piecewise function of the final output. To ensure that the supplier and the retailer both have incentives to accept the coordination contract, a lump-sum fee is offered. The interval of lump-sum fee is given leaving both the supplier and the retailer better off with the two-part tariff contract.


2014 ◽  
Vol 2014 ◽  
pp. 1-10 ◽  
Author(s):  
Haifeng Zhao ◽  
Bin Lin ◽  
Wanqing Mao ◽  
Yang Ye

Cooperation of all the members in a supply chain plays an important role in logistics service. The service integrator can encourage cooperation from service suppliers by sharing their cost during the service, which we assume can increase the sales by accumulating the reputation of the supply chain. A differential game model is established with the logistics service supply chain that consists of one service integrator and one supplier. And we derive the optimal solutions of the Nash equilibrium without cost sharing contract and the Stackelberg equilibrium with the integrator as the leader who partially shares the cost of the efforts of the supplier. The results make the benefits of the cost sharing contract in increasing the profits of both players as well as the whole supply chain explicit, which means that the cost sharing contract is an effective coordination mechanism in the long-term relationship of the members in a logistics service supply chain.


Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-18
Author(s):  
Shan Yu ◽  
Qiang Hou

Due to excessive greenhouse gas emissions, carbon emission-reducing measures are urgently needed. Important emission-reduction measures mainly include carbon trading and low-carbon cost subsidies. Comprehensive consideration of these two policies is a research hotspot in the field of low-carbon technology investment. Based on this background, this paper considers the impact of consumer low-carbon preferences on market demand and the impact of uncertainty in carbon emission-reduction behaviour. We construct a stochastic differential game model with upstream and downstream enterprises based on cost-sharing coordination under a cost subsidy. From a dynamic perspective, this paper researches the optimal equilibrium strategy and evolution characteristics of the joint emission-reduction mechanism in a supply chain. This paper discusses the sensitivity of the parameters and uses numerical simulation to verify the impact of each parameter on the emission-reduction decision-making activities of stakeholders after introducing the cost subsidy. The results show that a cost subsidy policy can promote carbon emission-reduction investment and supply chain profit. Thus, it is important to strengthen technical cooperation and exchange among enterprises.


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