Title
Contracting Emissions Reduction Supply Chain Based on Market Low-Carbon Preference and Carbon Intensity Constraint
Abstract
Carbon emissions reduction has become a frequently discussed topic in industry and academia. However, how can reduction effects be enhanced with dominant brand and downstream manufacturer? This paper incorporates emissions reduction into a green supply chain which considers consumers' low-carbon preference behavior and government intensity regulations, in order to discuss the impacts of consumers' environmental awareness and government constraints on optimal emissions reduction and profit, respectively. The paper first constructs three reduction models on the basis of reality: independent reduction by manufacturer, contractual reduction by brand and collaborative reduction by both. Then it concludes the optimal decisions and compare the models. The results show that both the profits and emissions reduction will be decreased with the strengthened carbon intensity constraint, but the cost-sharing contract can mitigate this negative effect on dominant brand and society. Meanwhile, the acceptable range of cost-sharing ratio will be smaller with a lower cost coefficient of emissions reduction and a higher consumers' preference. Furthermore, government should design the incentive method or regulate the carbon market to improve the social welfare level. Lastly, a numerical study is conducted, the impact of several key factors on supply chain performance and model selection are presented for management decisions.
Year
DOI
Venue
2020
10.1142/S0217595920500037
ASIA-PACIFIC JOURNAL OF OPERATIONAL RESEARCH
Keywords
DocType
Volume
Carbon emissions reduction,low-carbon preference,carbon emissions quota,carbon trading,supply chain contract
Journal
37
Issue
ISSN
Citations 
2
0217-5959
1
PageRank 
References 
Authors
0.34
0
5
Name
Order
Citations
PageRank
Jiaping Xie111.02
Jing Li25243.73
Ling Liang331.03
Xu Fang442.42
Guang Yang56715.35