scholarly journals Optimal Decisions for Carbon Emission Reduction through Technological Innovation in a Hybrid-Channel Supply Chain with Consumers’ Channel Preferences

2019 ◽  
Vol 2019 ◽  
pp. 1-24 ◽  
Author(s):  
Chong Xin ◽  
Yunzhu Zhou ◽  
Xiaochen Zhu ◽  
Lin Li ◽  
Xin Chen

This paper integrates carbon emission reduction via technological innovation with consumer channel preferences in both single- and dual-channel supply chains selling low-carbon products. Linear demand functions which simultaneously reflect the consumers’ channel preferences and low-carbon sensitivity are developed by considering the consumers’ segmentation. On this basis, we present two Stackelberg game models: one for each of the single- and dual-channel supply chains. In the first, the manufacturer sells low-carbon products through a traditional retailer who has a physical store, while in the second the manufacturer opens an online direct channel to compete with the traditional retailer. For the two models developed, the optimal pricing decisions, carbon emission reduction level, and profits are derived and discussed. Numerical examples are given to verify the effectiveness and practicality of the proposed models and solutions. The results show that supply chain members’ profits are affected by system parameters such as the carbon price, consumers’ low-carbon sensitivity, channel preference, etc. Furthermore, although the aforementioned parameters stimulate the manufacturer to reduce carbon emission, this does not always benefit the retailer. Comparison of the two models indicates that dual-channel selling is only the better choice for both the manufacturer and the retailer under certain conditions.

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-9
Author(s):  
Cheng Che ◽  
Yi Chen ◽  
Xiaoguang Zhang ◽  
Zhihong Zhang

With the implementation of national carbon emission reduction policies and the development of online shopping, manufacturers are making low-carbon efforts and selling products through dual channels. This paper constructs a dual-channel supply chain decision-making model composed of low-carbon emission reduction manufacturers and retailers and studies the optimal decision-making problem of the supply chain under subsidies by the government based on emission reduction R&D and per unit product emission reduction. The research results show the following: (1) when the government subsidizes emission reduction R&D, the emission reduction will have an impact on retailers’ optimal prices, manufacturers’ optimal wholesale prices, and optimal direct sales channel sales prices. The profit of the manufacturer increases with the increase in carbon emissions, and the profit of the manufacturer increases to a certain level and then appears to decline. (2) When the government adopts a subsidy method based on the emission reduction per unit product, the manufacturer’s wholesale price and the selling price of direct sales channels, as well as the retailer’s own optimal price, will increase with the increase in emission reductions. Retailers’ profits will increase linearly with the increase in carbon emissions. Manufacturers’ profits will first increase in a straight line and then increase in a curve.


2021 ◽  
Vol 13 (11) ◽  
pp. 6445
Author(s):  
Jingci Xie ◽  
Jianjian Liu ◽  
Xin Huo ◽  
Qingchun Meng ◽  
Mengyu Chu

Due to growing concerns for environmental problems and food quality, consumers pay more attention to the carbon emission and freshness of fresh food. The booming e-commerce also accelerates the development of the dual-channel supply chain. In the dual-channel supply chain of fresh food, the carbon emission and freshness of fresh food are becoming important factors affecting consumers’ purchase demand. This paper focuses on the optimal decision of carbon emission reduction and pricing, which is investigated by a Stackelberg game-theoretic approach in three dual-channel supply chain sales models (retailer dual channel, producer dual channel, and mixed dual channel). A two-stage fresh food supply chain system composed of a producer and a retailer is explored. The sensitivity analysis and the comparison of three dual-channel models are carried out. The results show the following: (1) the sales price, carbon emission reduction, market demand, producer’s profit, retailer’s profit, and supply chain’s profit of fresh food under the three dual-channel supply chains show the same change on different levels of consumers’ low-carbon preference coefficient and freshness level, respectively; (2) the optimal decision of carbon emission reduction and pricing, demand, and profit of the three dual-channel models need to be determined according to the value of consumers’ purchasing preferences for the retailer’s offline channel. The paper gives some enlightenment to the decision-making members in the fresh dual-channel supply chain.


2014 ◽  
Vol 1073-1076 ◽  
pp. 2539-2544
Author(s):  
Yan Ju Zhou ◽  
Yu Qing Huang

For the existence of carbon emission reduction cost, the retail price of the products is so high that the market demand is low, which restricts the promotion of low-carbon products. On the background of a bilateral-monopoly supply chain consisting of a single manufacturer and a single retailer, we establish Stackelberg models based on the carbon emission reduction cost-sharing. And we analyze the changes of the order quantity, the profits of each member and the whole supply chain before and after the implementation of the carbon emission reduction cost-sharing contract. According to the research, when the carbon emission reduction cost-sharing contract is introduced into the model, it leads to a good consequence that the optimal order quantity of the low-carbon product increases, the retail price decreases, and the manufacturer and the retailer will get Pareto improvement on certain condition. Then we derivate the necessary conditions that the profit of the retailer and the manufacturer could both increase.


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.


Mathematics ◽  
2021 ◽  
Vol 9 (19) ◽  
pp. 2426
Author(s):  
Wen Jiang ◽  
Menglin Liu ◽  
Lu Gan ◽  
Chong Wang

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.


2014 ◽  
Vol 2014 ◽  
pp. 1-13 ◽  
Author(s):  
Liangjie Xia ◽  
Longfei He

The paper studies how the combination of the manufacturer’s carbon emission reduction and the retailer’s emission reduction relevant promotion impacts the performances of a dyadic supply chain in low-carbon environment. We consider three typical scenarios, that is, centralized and decentralized without or with side-payment. We compare measures of supply chain performances, such as profitabilities, emission reduction efficiencies, and effectiveness, in these scenarios. To improve chain-wide performances, a new side-payment contract is designed to coordinate the supply chain and numerical experiments are also conducted. We find the following. (1) In decentralized setting, the retailer will provide emission cutting allowance to the manufacturer only if their unit product profit margin is higher enough than the manufacturer’s, and the emission reduction level of per unit product is a monotonically increasing function with respect to the cost pooling proportion provided by the retailer; (2) the new side-payment contract can coordinate the dyadic supply chain successfully due to its integrating sales promotion effort and emission reduction input, which results in system pareto optimality under decentralized individual rationality but achieves a collective rationality effect in the centralized setting; (3) when without external force’s regulation, consumers’ low-carbon awareness is to enhance consumers’ utility and decrease profits of supply chain firms.


Sign in / Sign up

Export Citation Format

Share Document