Pricing strategies of low-carbon enterprises in the Yellow River Basin considering demand information and traceability services

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pan Liu ◽  
Xiaoyan Cui ◽  
Ziran Zhang ◽  
Wenwen Zhou ◽  
Yue Long

PurposeThe purpose of this paper is to solve new pricing issues faced by low-carbon companies in the Yellow River Basin, which is caused by the change of key pricing factors in the mixed appliance background of Big Data and blockchain, such as product quality and carbon-emission reduction CER level (hereafter, CER level).Design/methodology/approachWe choose a low-carbon supply chain with a low-carbon manufacturer and a retailer as our research object. Then, we propose that using the ineffective effect of the CER level and the quality and safety level to reflect the relationships among the CER level, the quality and safety level and the market demand is more suitable in the new environment. Based on these, we revise the demand equation. Afterwards, by using Stackelberg game, four cost-sharing situations and their pricing rules are analyzed.FindingsResults indicated that in the four cost-sharing situations, the change trends and the magnitudes of the best retail prices were not affected by the changes of the inputs of the demand information and the traceability services costs (hereafter, DITS costs), the proportion about retailer's DITS costs undertaken by the manufacturer, the ineffective effect coefficient of the CER level and the quality and safety level and the cost optimization coefficient. However, the cost-sharing situations could affect the change magnitudes of the best revenues.Originality/valueThis paper has two main contributions. First, this paper proposes a demand function that is more suitable for the mixed appliance background of Big Data and blockchain. Secondly, this paper improves the cost-sharing model and finds that demand information sharing and traceability service sharing have different impacts on key pricing factors of low-carbon product. In addition, this research provides a theoretical reference for low-carbon supply chain members to formulate pricing strategies in the new background.

2017 ◽  
Vol 117 (10) ◽  
pp. 2468-2484 ◽  
Author(s):  
Xu Chen ◽  
Xiaojun Wang

Purpose In the era of climate change, industrial organizations are under increasing pressure from consumers and regulators to reduce greenhouse gas emissions. The purpose of this paper is to examine the effectiveness of product mix as a strategy to deliver the low carbon supply chain under the cap-and-trade policy. Design/methodology/approach The authors incorporate the cap-and-trade policy into the green product mix decision models by using game-theoretic approach and compare these decisions in a decentralized model and a centralized model, respectively. The research explores potential behavioral changes under the cap-and-trade in the context of a two-echelon supply chain. Findings The analysis results show that the channel structure has significant impact on both economic and environmental performances. An integrated supply chain generates more profits. In contrast, a decentralized supply chain has lower carbon emissions. The cap-and-trade policy makes a different impact on the economic and environmental performances of the supply chain. Balancing the trade-offs is critical to ensure the long-term sustainability. Originality/value The research offers many interesting observations with respect to the effect of product mix strategy on operational decisions and the trade-offs between costs and carbon emissions under the cap-and-trade policy. The insights derived from the analysis not only help firms to make important operational and strategic decisions to reduce carbon emissions while maintaining their economic competitiveness, but also make meaningful contribution to governments’ policy making for carbon emissions control.


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.


Author(s):  
Xiao-jun Wang ◽  
Jian-yun Zhang ◽  
Shamsuddin Shahid ◽  
Lang Yu ◽  
Chen Xie ◽  
...  

Purpose The purpose of this paper is to develop a statistical-based model to forecast future domestic water demand in the context of climate change, population growth and technological development in Yellow River. Design/methodology/approach The model is developed through the analysis of the effects of climate variables and population on domestic water use in eight sub-basins of the Yellow River. The model is then used to forecast water demand under different environment change scenarios. Findings The model projected an increase in domestic water demand in the Yellow River basin in the range of 67.85 × 108 to 62.20 × 108 m3 in year 2020 and between 73.32 × 108 and 89.27 × 108 m3 in year 2030. The general circulation model Beijing Normal University-Earth System Model (BNU-ESM) predicted the highest increase in water demand in both 2020 and 2030, while Centre National de Recherches Meteorologiques Climate Model v.5 (CNRM-CM5) and Model for Interdisciplinary Research on Climate- Earth System (MIROC-ESM) projected the lowest increase in demand in 2020 and 2030, respectively. The fastest growth in water demand is found in the region where water demand is already very high, which may cause serious water shortage and conflicts among water users. Originality/value The simple regression-based domestic water demand model proposed in the study can be used for rapid evaluation of possible changes in domestic water demand due to environmental changes to aid in adaptation and mitigation planning.


Kybernetes ◽  
2018 ◽  
Vol 49 (4) ◽  
pp. 1143-1167 ◽  
Author(s):  
Qinqin Li ◽  
Yujie Xiao ◽  
Yuzhuo Qiu ◽  
Xiaoling Xu ◽  
Caichun Chai

Purpose The purpose of this paper is to examine the impact of carbon permit allocation rules (grandfathering mechanism and benchmarking mechanism) on incentive contracts provided by the retailer to encourage the manufacturer to invest more in reducing carbon emissions. Design/methodology/approach The authors consider a two-echelon supply chain in which the retailer offers three contracts (wholesale price contract, cost-sharing contract and revenue-sharing contract) to the manufacturer. Based on the two carbon permit allocation rules, i.e. grandfathering mechanism and benchmarking mechanism, six scenarios are examined. The optimal price and carbon emission reduction decisions and members’ equilibrium profits under six scenarios are analyzed and compared. Findings The results suggest that the revenue-sharing contract can more effectively stimulate the manufacturer to reduce carbon emissions compared to the cost-sharing contract. The cost-sharing contract can help to achieve the highest environmental performance, whereas the implementation of revenue-sharing contract can attain the highest social welfare. The benchmarking mechanism is more effective for the government to prompt the manufacturer to produce low-carbon products than the grandfathering mechanism. Although a loose carbon policy can expand the total emissions, it can improve the social welfare. Practical implications These results can provide operational insights for the retailer in how to use incentive contract to encourage the manufacturer to curb carbon emissions and offer managerial insights for the government to make policy decisions on carbon permit allocation rules. Originality/value This paper contributes to the literature regarding to firm’s carbon emissions reduction decisions under cap-and-trade policy and highlights the importance of carbon permit allocation methods in curbing carbon emissions.


2018 ◽  
Vol 90 (4) ◽  
pp. 659-666
Author(s):  
Bartosz Dziugiel ◽  
Zdobyslaw Jan Goraj

Purpose The purpose of this study is to investigate the influence of the technical and operational specifications of the Small Aircraft Transport System (SAT/SATS) to the achieved safety level. Design/methodology/approach Safety estimation was made with the use of mathematical model of safety of light aircraft in commercial operations developed on the basis of Federal Aviation Administration (FAA) data. The analysis was conducted for two different SATS business models based on Direct AiR Transport (DART) concept. It allowed for the investigation of the impact of technical specifications of the aircraft included into the SATS fleet as well as the selected elements of the applied business model on SATS safety level. Findings It was found that the proposed changes to DART system resulted in a significant improvement of safety. Mean Time Between Incidents and Accident (MTBIA) increased by 200 per cent. Additionally, the introduced alterations impacted the weights of particular domains and pilot’s error became less critical than the technical reliability. Practical implications It was shown that the application of new requirements influences both the safety level and the cost of operation, which was demonstrated within the ESPOSA and DART projects. Additionally, it was indicated that further effort to improve the light aircraft safety is absolutely necessary. Originality/value Originality consists in combining in one mathematical model both the aircraft configuration and the rules for business operation. Optimization of selected parameters of the system leads to a significant reduction in the accident number and to keeping the cost increment at a reasonable level. It was also found that the resulted improvement sometimes cannot be sufficient to consider a small aircraft operation fully safe, mainly owing to the numerous restrictions because of its small weight and loading capacity.


Author(s):  
Yang Li ◽  
Zhixiang Xie ◽  
Yaochen Qin ◽  
Zhicheng Zheng

Purpose This paper aims to study the temporal and spatial variation of vegetation and the influence of climate change on vegetation coverage in the Yellow River basin, China. The current study aimed to evaluate the role of a series of government-led environmental control projects in restoring the ecological environment of the Yellow River basin. Design/methodology/approach This paper uses unary linear regression, Mann–Kendall and wavelet analyses to study the spatial–temporal variations of vegetation and the response to climate changes in the Yellow River, China. Findings The results showed that for the past 17 years, not only the mean annual increase rate of the Normalized Difference Vegetation Index (NDVI) was 0.0059/a, but the spatial heterogeneity also yields significant results. The vegetation growth in the southeastern region was significantly better than that in the northwestern region. The variation period of the NDVI in the study area significantly shortened, and the most obvious oscillation period was half a year, with two peaks in one year. In addition, there are positive and negative effects of human activities on the change of vegetation cover of the Loess Plateau. The project of transforming cultivated land to forest and grassland promotes the increase of vegetation cover of the Loess plateau. Unfortunately, the regional urbanization and industrialization proliferated, and the overloading of grazing, deforestation, over-reclamation, and the exploitation and development of the energy area in the grassland region led to the reduction of the NDVI. Fortunately, the positive effects outweigh the negative ones. Originality/value This paper provides a comprehensive insight to analysis of the vegetation change and the responses of vegetation to climate change, with special reference to make the planning policy of ecological restoration. This paper argues that ecological restoration should be strengthened in areas with annual precipitation less than 450 mm.


2020 ◽  
Vol 12 (9) ◽  
pp. 3591 ◽  
Author(s):  
Dan Wu ◽  
Yuxiang Yang

In this paper, we study the supply chain coordination problem between a manufacturer and a retailer regarding consumers’ low-carbon preferences. The retailer considers the market demand to determine the order quantity; the manufacturer chooses how to reduce emissions according to the retailer’s order quantity. We consider four cases, including the non-emission abatement, the emission abatement of decentralized decision-making, the centralized decision-making and the retailer providing a cost-sharing contract. By comparing the four cases, we find that the case of a retailer providing a cost-sharing contract can coordinate the supply chain, achieving a Pareto improvement for the manufacturer and retailer. In addition, we use the Rubinstein bargaining model to determine the cost-sharing ratio. Finally, numerical simulations are given to analyze the impact of the cost-sharing ratio on the equilibrium results, including the profit and the emission abatement level. Furthermore, we investigate the impact of the cost-sharing ratio and consumers’ low-carbon awareness on the profits of the members in the supply chain. We find that the equilibrium results, including the order quantity, the emission abatement level and the profits of the members in the supply chain under contract, are higher than the ones under centralized decision-making. The results show that in the higher low-carbon awareness market, retailers should formulate a reasonable cost-sharing ratio to achieve emission reduction coordination.


Significance Trade-offs with other policy concerns such as domestic job creation pose political dilemmas. Both green technology products and their inputs are increasingly seen as strategic, prompting efforts to secure supply chains, which risk generating trade frictions and geopolitical disputes that could affect the cost efficiency of green technology. Impacts Global supply chain traceability will become more important for low-carbon companies and investors. The need to meet increased demand for green-technology minerals will create opportunities in the areas of recycling and recovery. Green technology transfer between Western and Chinese companies will become subject to trade disputes.


2019 ◽  
Vol 30 (1) ◽  
pp. 146-179 ◽  
Author(s):  
Sudhir Ambekar ◽  
Anand Prakash ◽  
Vishal Singh Patyal

Purpose The purpose of this paper is to propose a low carbon culture (LCC) adoption model for gaining the right carbon capabilities by integrating the dimensions of flexibility or control and external or internal of competing values framework (CVF) with that of level of carbon emission (LCE). Design/methodology/approach This study reviewed literature related to low carbon supply chain, CVF and carbon capabilities to synthesize currently available frameworks for assessing culture and carbon-related insights. Based on these insights, this study proposes the carbon culture adoption model and presents some research propositions. Findings This study has extended categorization of culture suggested in CVF from four categories to eight distinct categories by adding “LCE” as a third dimension. The new categories of carbon culture are: “Red,” “Antagonist,” “Obligatory,” “Early Adopter,” “Follower,” “Transitive,” “Pragmatist” and “Green.” This categorization of organizations would help in selecting appropriate low carbon practices (LCPs). Research limitations/implications This study presents purely conceptual framework with some research propositions which needs to be empirically tested. Practical implications Organizations can formulate right policies for low carbon capabilities based on the LCC of their supply chain. Originality/value With increasing awareness about environment across stakeholders, organizations around the world are under pressure to reduce their carbon footprints. The extent of reduction in carbon footprints depends on the right capabilities across the supply chain which in turn depends on selection of the right combination of LCPs based on the supply chain culture.


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