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

Author(s):  
Biao Li ◽  
Yong Geng ◽  
Xiqiang Xia ◽  
Dan Qiao

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.

Author(s):  
Hao Zou ◽  
Jin Qin ◽  
Bo Dai

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.


Energies ◽  
2021 ◽  
Vol 14 (7) ◽  
pp. 1810
Author(s):  
Kaitong Xu ◽  
Haibo Kang ◽  
Wei Wang ◽  
Ping Jiang ◽  
Na Li

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.


2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Zhipeng Li ◽  
Shuzhen Zhu ◽  
Xinyu Cao

Considering the multitargets of corporate carbon emission reduction and the fairness preference psychology of the company, a government incentive model for corporate carbon emission reduction was constructed. The impact of corporate fairness preferences on government carbon emission reduction incentive strategies is studied. In addition, numerical simulation is used to analyze the impact of changes in correlation coefficients, fairness preference coefficients, and discount rates on the optimal enterprise effort coefficient and the government optimal incentive coefficient. Research shows that the degree of fairness preference of a company has a direct impact on the degree of corporate effort, while the discount rate will only have an impact on the company’s long-term effort. In order to improve corporate carbon emission reduction efforts, the government must not only consider the impact of fairness preference on corporate efforts but also flexibly adjust the incentive coefficient of long-term and short-term tasks based on the discount rate.


2019 ◽  
Vol 11 (16) ◽  
pp. 4387 ◽  
Author(s):  
Lin ◽  
Zhang ◽  
Wang ◽  
Yang ◽  
Shi ◽  
...  

The increasing demand for urban distribution increases the number of transportation vehicles which intensifies the congestion of urban traffic and leads to a lot of carbon emissions. This paper focuses on carbon emission reduction in urban distribution, taking perishable foods as the object. It carries out optimization analysis of urban distribution routes to explore the impact of low carbon policy on urban distribution routes planning. On the basis of analysis of the cost components and corresponding constraints of urban distribution, two optimization models of urban distribution routes with and without carbon emissions cost are constructed. Fuel quantity related to cost and carbon emissions in the model is calculated based on traffic speed, vehicle fuel quantity and passable time period of distribution. Then an improved algorithm which combines genetic algorithm and tabu search algorithm is designed to solve models. Moreover, an analysis of the influence of carbon tax price is also carried out. It is concluded that in the process of urban distribution based on the actual network information, path optimization considering the low carbon factor can effectively reduce the distribution process of CO2, and reduce the total cost of the enterprise and society, thus achieving greater social benefits at a lower cost. In addition, the government can encourage low-carbon distribution by rationally adjusting the price of carbon tax to achieve a higher social benefit.


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.


2020 ◽  
Vol 12 (6) ◽  
pp. 2281 ◽  
Author(s):  
Chang Su ◽  
Xiaojing Liu ◽  
Wenyi Du

This study examined how to arrange the generation and pricing of supply chain members in the case of consumer green preference with different government subsidies. The green supply chain comprises a manufacturer and a retailer; the government subsidizes manufacturers who produce green products and consumers who buy green products. The study built a green supply chain pricing decision model with different forms of subsidy under various power structures. By backward induction and sensitivity analysis, this study analyzed optimal strategies of green supply chain under various modes, and we discuss how the government subsidy coefficient affects the optimal decision of a green supply chain. The results show that, firstly, whether the government subsidizes the manufacturers or the consumers, the wholesale price offered by the manufacturer is directly proportional to the subsidy coefficient under the two power structures. Secondly, when the government subsidizes the manufacturer, the carbon-emission level and the retail price are inversely proportional to the subsidy coefficient under the manufacturer leader; the carbon-emission level and the retail price are all directly proportional to the subsidy coefficient under the retailer leader. Finally, when the government subsidizes the consumers, the carbon-emission level and the retail price are directly proportional to the subsidy coefficient under the two power structures.


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.


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