scholarly journals Optimal Pricing Decisions for a Low-Carbon Supply Chain Considering Fairness Concern under Carbon Quota Policy

2021 ◽  
Vol 18 (2) ◽  
pp. 556
Author(s):  
Hao Zou ◽  
Jin Qin ◽  
Bo Dai
Keyword(s):  
Emission Reduction ◽  
Carbon Emission ◽  
Reduction Rate ◽  
Retail Price ◽  
Low Carbon ◽  
Close Attention ◽  
Carbon Emission Reduction ◽  
Carbon Supply ◽  
Total Profit ◽  
Fairness Concern

This research investigates the effect of fairness concerns on a sustainable low-carbon supply chain (LCSC) with a carbon quota policy, in which a manufacturer is in charge of manufacturing low-carbon products and sells them to a retailer. The demand is affected by price and the carbon emission reduction rate. The optimal decisions of pricing and carbon emission reduction rate are analyzed under four decision models: (i) centralized decision, (ii) decentralized decision without fairness concern, (iii) decentralized decision with manufacturer’s fairness concern, (iv) decentralized decision with retailer’s fairness concern. The results indicate that the profits in the centralized LCSC are higher than those in the decentralized LCSC with fairness concern. If a manufacturer pays close attention to fairness, the fairness concern coefficient will reduce the carbon emission reduction rate and the profit of the LCSC and increase the wholesale price and the retail price of the product. If a retailer pays close attention to fairness, and the preference of consumers for a low-carbon product is low, the fairness concern coefficient of the retailer increases the total profit of the LCSC and decreases the carbon emission reduction rate and retail price of the product. Otherwise, if the preference of consumers for a low-carbon product is great, the fairness concern coefficient of the retailer would lead to a lower retail price compared with the retail price in the centralized decision and decrease the total profit of the LCSC.

scholarly journals The Impact of Government Subsidies on the Low-Carbon Supply Chain Based on Carbon Emission Reduction Level

2021 ◽  
Vol 18 (14) ◽  
pp. 7603
Author(s):  
Biao Li ◽  
Yong Geng ◽  
Xiqiang Xia ◽  
Dan Qiao
Keyword(s):  
Emission Reduction ◽  
Carbon Emission ◽  
Wholesale Price ◽  
Retail Price ◽  
Low Carbon ◽  
Carbon Emission Reduction ◽  
Government Subsidies ◽  
Carbon Supply ◽  
The Government ◽  
The Impact

To improve low-carbon technology, the government has shifted its strategy from subsidizing low-carbon products (LCP) to low-carbon technology. To analyze the impact of government subsidies based on carbon emission reduction levels on different entities in the low-carbon supply chain (LCSC), game theory is used to model the provision of government subsidies to low-carbon enterprises and retailers. The main findings of the paper are that a government subsidy strategy based on carbon emission reduction levels can effectively drive low-carbon enterprises to further reduce the carbon emissions. The government’s choice of subsidy has the same effect on the LCP retail price per unit, the sales volume, and the revenue of low-carbon products per unit. When the government subsidizes the retailer, the low-carbon product wholesale price per unit is the highest. That is, low-carbon enterprises use up part of the government subsidies by increasing the wholesale price of low-carbon products. The retail price of low-carbon products per unit is lower than the retail price of low-carbon products in the context of decentralized decision making, but the sales volume and revenue of low-carbon products are greater in the centralized decision-making. The cost–benefit-sharing contract could enable the decentralized decision model to achieve the same level of profit as the centralized decision model.

Cost-Sharing Contract in Low Carbonization Supply Chain Based on Improving Demand for Low-Carbon Products

2014 ◽  
Vol 1073-1076 ◽  
pp. 2539-2544
Author(s):  
Yan Ju Zhou ◽  
Yu Qing Huang
Keyword(s):  
Supply Chain ◽  
Cost Sharing ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Retail Price ◽  
Market Demand ◽  
Low Carbon ◽  
Order Quantity ◽  
Carbon Emission Reduction ◽  
Reduction Cost

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.

scholarly journals Optimal Operation Strategies under a Carbon Cap-and-Trade Mechanism: A Capital-Constrained Supply Chain Incorporating Risk Aversion

2020 ◽  
Vol 2020 ◽  
pp. 1-17
Author(s):  
Linming Qi ◽  
Lu Liu ◽  
Liwen Jiang ◽  
Zicheng Wang ◽  
Weiliang Zhao
Keyword(s):  
Supply Chain ◽  
Risk Aversion ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Trade Credit ◽  
Carbon Trading ◽  
Low Carbon ◽  
Carbon Emission Reduction ◽  
Carbon Supply ◽  
Reduction Effort

Many small and medium enterprises (SMEs) with capital constraints often have no access or find it costly to obtain a loan from a bank; the retailer tends to borrow money from other enterprises in the supply chain by trade credit financing. We consider an emission-dependent supply chain with one emission-dependent manufacturer and one capital-constrained retailer in need of financing to explore the optimal operational and environmental strategies of a low-carbon supply chain under trade credit financing. We use a Stackelberg game model to depict the low-carbon supply chain. We analyse the optimal carbon-emission reduction effort, wholesale price, and order quantity in the equilibrium state. The impacts of key parameters, such as the retailer’s internal working capital, the manufacturer’s risk-aversion degree, and the carbon-trading price on the supply chain operation, are analysed. The results show that the retailer’s capital constraint causes the carbon-emission reduction effort, wholesale price, and order quantity to improve synchronously. The supply chain achieves a win-win outcome for both the manufacturer and the retailer when the capital-constrained retailer is funded via trade credit from the manufacturer. The in-depth development of financing is beneficial to the manufacturer but is a disadvantage for the retailer. When the initial carbon-emission quota is low, the manufacturer benefits from a relatively lower carbon-trading price. Otherwise, a higher carbon-trading price is better for the manufacturer. The “carbon-trading price trap” ensures that the retailer’s profit is minimal. We further investigate the scenario in which the manufacturer is risk averse and find that the retailer will purchase fewer products and that the manufacturer will gain less profit to decrease the carbon-emission reduction effort. The manufacturer’s risk aversion is unfavourable to both the economic and environmental outcomes of the whole supply chain. This research provides strategic support for a low-carbon supply chain to carry out operational decisions in the context of enterprise capital constraint. To examine the theoretical results, the data used in the existing literature are further used to simulate the corresponding conclusions. Our research enriches the existing supply chain finance literature and provides decision support for the supply chain core enterprise.

scholarly journals Comparison of Carbon Emission Reduction Modes: Impacts of Capital Constraint and Risk Aversion

2019 ◽  
Vol 11 (6) ◽  
pp. 1661 ◽  
Author(s):  
Weisheng Deng ◽  
Lu Liu
Keyword(s):  
Supply Chain ◽  
Risk Aversion ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Decision Makers ◽  
Selection Strategy ◽  
Low Carbon ◽  
Initial Capital ◽  
Carbon Emission Reduction ◽  
Carbon Supply

The need for low-carbon development has become a social consensus. Increasing numbers of enterprises implement carbon emission reduction by using carbon cap-and-trade mechanisms to cater to consumers and practice social responsibility. From the manufacturer’s perspective, they can implement carbon emission reduction investment by themselves or outsource it to the retailer or energy service company (referred as ESCO). To explore the best carbon emission reduction mode selection strategy, we built and compared three carbon emission reduction modes—manufacturer emission reduction, retailer emission reduction, and ESCO emission reduction—by using Stackelberg game models. The joint decisions of operation, finance, and environment were obtained by using the backward induction approach. The impacts of key parameters were analyzed, such as the retailer’s initial capital amount and the decision-makers’ risk aversion degree on the low carbon supply chain operation. Our results show that the optimal carbon emission reduction mode for the manufacturer is changed as the retailer’s initial capital amount changes. Carbon emission reduction by the ESCO (retailer) becomes the dominant strategy for both the economy and environment when the cost advantage (cash investment ratio) of the ESCO (retailer) carbon emission reduction mode is sufficiently high (low). Overall, decision-makers’ risk aversion is detrimental to both the economic and environmental developments of the supply chain. We also designed contracts to realize the coordination of risk-neutral, risk-averse, capital-adequate, and capital-constrained low-carbon supply chains. These results give guidance for decision-makers to better manage the low-carbon supply chain in the context of fully considering the influential factors of risk aversion and capital constraint.

scholarly journals Carbon Emission Estimation of Assembled Composite Concrete Beams during Construction

Energies ◽  
2021 ◽  
Vol 14 (7) ◽  
pp. 1810
Author(s):  
Kaitong Xu ◽  
Haibo Kang ◽  
Wei Wang ◽  
Ping Jiang ◽  
Na Li
Keyword(s):  
Life Cycle ◽  
Carbon Emissions ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Composite Beams ◽  
Total Carbon ◽  
Construction Process ◽  
Low Carbon ◽  
Carbon Emission Reduction ◽  
The Government

At present, the issue of carbon emissions from buildings has become a hot topic, and carbon emission reduction is also becoming a political and economic contest for countries. As a result, the government and researchers have gradually begun to attach great importance to the industrialization of low-carbon and energy-saving buildings. The rise of prefabricated buildings has promoted a major transformation of the construction methods in the construction industry, which is conducive to reducing the consumption of resources and energy, and of great significance in promoting the low-carbon emission reduction of industrial buildings. This article mainly studies the calculation model for carbon emissions of the three-stage life cycle of component production, logistics transportation, and on-site installation in the whole construction process of composite beams for prefabricated buildings. The construction of CG-2 composite beams in Fujian province, China, was taken as the example. Based on the life cycle assessment method, carbon emissions from the actual construction process of composite beams were evaluated, and that generated by the composite beam components during the transportation stage by using diesel, gasoline, and electric energy consumption methods were compared in detail. The results show that (1) the carbon emissions generated by composite beams during the production stage were relatively high, accounting for 80.8% of the total carbon emissions, while during the transport stage and installation stage, they only accounted for 7.6% and 11.6%, respectively; and (2) during the transportation stage with three different energy-consuming trucks, the carbon emissions from diesel fuel trucks were higher, reaching 186.05 kg, followed by gasoline trucks, which generated about 115.68 kg; electric trucks produced the lowest, only 12.24 kg.

scholarly journals The Role of the Discount Policy of Prepayment on Environmentally Friendly Inventory Management

2022 ◽  
Vol 6 (1) ◽  
pp. 26
Author(s):  
Shirin Sultana ◽  
Abu Hashan Md Mashud ◽  
Yosef Daryanto ◽  
Sujan Miah ◽  
Adel Alrasheedi ◽  
...  
Keyword(s):  
Inventory Management ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Positive Impact ◽  
Environmentally Friendly ◽  
Selling Price ◽  
Business Systems ◽  
Carbon Emission Reduction ◽  
Demand Rate ◽  
Total Profit

Nowadays, more and more consumers consider environmentally friendly products in their purchasing decisions. Companies need to adapt to these changes while paying attention to standard business systems such as payment terms. The purpose of this study is to optimize the entire profit function of a retailer and to find the optimal selling price and replenishment cycle when the demand rate depends on the price and carbon emission reduction level. This study investigates an economic order quantity model that has a demand function with a positive impact of carbon emission reduction besides the selling price. In this model, the supplier requests payment in advance on the purchased cost while offering a discount according to the payment in the advanced decision. Three different types of payment-in-advance cases are applied: (1) payment in advance with equal numbers of instalments, (2) payment in advance with a single instalment, and (3) the absence of payment in advance. Numerical examples and sensitivity analysis illustrate the proposed model. Here, the total profit increases for all three cases with higher values of carbon emission reduction level. Further, the study finds that the profit becomes maximum for case 2, whereas the selling price and cycle length become minimum. This study considers the sustainable inventory model with payment-in-advance settings when the demand rate depends on the price and carbon emission reduction level. From the literature review, no researcher has undergone this kind of study in the authors’ knowledge.

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