Carbon Emission Reduction Decision and Revenue-Sharing Contract with Consumers’ Low-Carbon Preference and CER Cost under Carbon Tax

Chao-Qun Han,Hua-Ying Gu,Chang-Peng Shao,Li-Hui Sui,Biswajit Sarkar

doi:10.1155/2021/3458607

Abstract

Since the tax of carbon emission is popular and consumers are exhibiting low-carbon preference, the green manufactures have to spend more extra cost on investing carbon emission reduction (CER) technology to decrease the carbon emission. To encourage the manufacture’s CER investment efforts, this paper explores the impact of carbon tax, CER cost, and consumers’ low-carbon preference on low-carbon decision-making and designs a revenue-sharing contract (RS) by constructing Stackelberg models. Based on the theoretical and numerical analysis, this paper finds that the supply chain would benefit from the increment of consumer’s environmental awareness but be depressed by the increase of the CER investment cost factor. Additionally, there exists a unique optimal carbon tax to make CER degree the maximum. Furthermore, RS can effectively promote manufacturers to reduce carbon emissions and also improve the supply chain efficiency.

Highlights

With the rapid development of the economy, global carbon dioxide emission has sharply increased in the past few decades, which significantly resulted in serious climate and global warming [1]
Some factors are taken into consideration such as the manufacturer’s carbon emission reduction (CER) cost factor, the government’s carbon tax, and consumers’ low-carbon preference to establish profit models of the low-carbon supply chain
E models determine the optimal CER degree and price decisions, as well as the carbon tax imposed by the government

Summary

Introduction

With the rapid development of the economy, global carbon dioxide emission has sharply increased in the past few decades, which significantly resulted in serious climate and global warming [1]. E extant findings have shown that coordination contracts or carbon tax as the mechanism are used to compensate and counterbalance the CER cost, resulting in motiving the manufacture to employ CER investments [4, 5]. In this context, from the perspective of encouraging manufacturers to reduce carbon emissions, this study tries to address the following questions: (1) how do the manufacturer and the retailer make decisions considering the carbon tax, customers’ low-carbon preference, and CER cost factor simultaneously? This paper integrates consumers’ low-carbon awareness, CER cost factor, and carbon tax into supply chain models and explores how these factors affect the CER degree and firms’ profit.

Literature Review

Model Description

The Models and Results

Numerical Analysis

Conclusion