Abstract
Bank credit financing and trade credit financing are two basic ways for small- and medium-sized enterprises to solve financial difficulties. We studied a supply chain financing (SCF) system with one capital-constrained manufacturer and one capital-rich supplier, in which manufacturers can choose bank credit financing (BCF) or trade credit financing (TCF) to solve financial difficulties. Unlike the traditional SCF, we considered the influence of the carbon emission trading mechanism, and we designed BCF and TCF models and derived the equilibrium strategies of the supply chain members under a carbon-constrained environment. The research shows that the emission reduction level of manufacturers increases with the increase in carbon emission trading price, and the output of manufacturers increases with the increase in emission reduction level of manufacturers. When the manufacturer’s emission reduction level is low, the supplier’s benefits under BCF are higher than those under TCF. There is a threshold for the manufacturer’s emission reduction level. When the emission reduction level is higher than this threshold, the manufacturer chooses BCF mode with higher benefits; on the contrary, TCF mode is more profitable.
Highlights
In the past decade, climate change caused by carbon emissions has received great attention from countries around the world
Based on the above analysis, we consider the influence of the carbon emission trading mechanism, and we designed bank credit financing (BCF) and trade credit financing (TCF) models and derived the equilibrium strategies of the supply chain members under a carbon-constrained environment. rough research, we found that the emission reduction level of manufacturers increases with the increase in carbon emission trading price, and the output of manufacturers increases with the increase in emission reduction level of manufacturers
We study a supply chain financing system that is composed of well-funded suppliers and capital-constrained manufacturers facing uncertain demand
Summary
Climate change caused by carbon emissions has received great attention from countries around the world. Different from the above research, we mainly studied low-carbon investment and financing decisions of manufacturers with limited capital Another literature related to this study is financing decisions under supply chain operation. All the above studies focus on supply chain financing strategies under capital constraints and do not consider the influence of carbon emission trading mechanisms on the decision-making of supply chain members. Different from them, this study considers the impact of trade credit finance on enterprise emission reduction level and order quantity. Singh et al [28] assumed that demand is a function of credit period and sale price, and they studied the impact of supply chain management on energy and carbon emissions under a two-level trade credit policy. Manufacturers can sell excess carbon allowances for a profit. e research content and methods of this study supplement the research results of Simin et al and provide theoretical reference for supply chain financing under the constraints of carbon emissions
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
