Abstract

Low-carbon development and environmental remediation are key factors for green resource-based supply chains in China. With this aim in mind, by applying game theory under uncertain market demand, this paper incorporates low-carbon development and environmental remediation into a resource-based supply chain coordination model for decentralized and centralized markets. The results show that a centralized market can lead to improvement in total profit. Furthermore, based on an improved Shapley value method, a theoretical model for the centralized market income distribution mechanism is developed that incorporates three corrective risk factors, ecological investment, and technological level. Finally, a numerical analysis is conducted using a MATLAB simulation to obtain intuitive results, which, in turn, show the validity of incentive income distribution mechanisms for green supply chain development in China.

Highlights

  • Traditional resource-based supply chains are placing an increasing burden on the world [1,2,3]because they use valuable resources that emit greenhouse gases and carbon, damage ecosystems, and cause environmental problems

  • Resource developers perceive low-carbon activities to be associated with ecological remediation, while resource processors perceive low-carbon activities as being associated with carbon emissions reductions

  • We mainly study the eco-development effort level required byfor resource-based supply chain required for ecological remediation by the resource developer and carbon emissions reductions enterprises on their differentiated environmental protection inputs

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Summary

Introduction

Traditional resource-based supply chains are placing an increasing burden on the world [1,2,3]because they use valuable resources that emit greenhouse gases and carbon, damage ecosystems, and cause environmental problems. Traditional resource-based supply chains are placing an increasing burden on the world [1,2,3]. Resource scarcity and environmental pollution have become serious global concerns; there is sufficient evidence to show that the current situation is no longer sustainable. In this paper, the authors develop a two-stage resource-based supply chain with two enterprises: a resource developer and a resource processor. Nations have conceded that it is necessary to rapidly reduce greenhouse gas emissions, adapt to the impact of environmental degradation, and simultaneously ensure support for developing countries [4]. As the largest developing country in the world, China is under immense pressure to develop a green supply chain industry. Low-carbon preferences from a consumer perspective can increase the market demand for green goods that are subsidized by the government

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