Carbon Emission Reduction in Green Supply Chain: The Impact of Two Financial Subsidy Policies

The low-carbon ecological city aims to harmonise sustainable urban development with low-emission planning approaches. Emissions from business production processes are central to low-carbon planning. This paper explores three closed-loop supply chain recycling models - manufacturer, retailer, and third-party -considering carbon trading and emission reduction technology investment. Respective Stackelberg game models are developed incorporating carbon emission reduction costs, recycling costs, carbon trading price, emission intensity, and recycling price. The influence of these variables on carbon emission reduction and profit is examined through numerical analysis. Results indicate the government’s free carbon quota does not impact per-unit carbon reduction or manufacturer profit, nor optimal recycling mode selection. Under specific remanufacturing emission intensity and production cost saving conditions, carbon quota trading can substantially incentivise manufacturers to invest in emission reduction and recycling. With carbon trading and emission reduction technology investment, manufacturer recycling optimises economic and environmental benefits when remanufactured products provide high production cost savings. This fosters sustainable development supporting low-carbon planning.

Research on supply chain carbon emission reduction decisions based on fairness concerns and revenue sharing contracts

In order to reduce the carbon emissions of manufacturers and retailers in their business activities, carbon emission limits must be set for manufacturers and retailers respectively, and they must make favorable decisions within the limits. This paper will focus on a two-level supply chain system composed of a single manufacturer and a single retailer, and explore the optimal wholesale price, optimal retail price, and optimal profit under four scenarios: neither is constrained by carbon quotas, only the manufacturer is constrained by carbon quotas, only the retailer is constrained by carbon quotas, and both are constrained by carbon quotas, by constructing Lagrange functions. Comparative analysis will be conducted. Research has shown that only when manufacturers are subject to carbon quotas, the optimal wholesale and retail prices will rise, and the optimal profits of both manufacturers and retailers will decrease; When retailers are constrained by carbon quotas, whether manufacturers are constrained by carbon quotas does not affect the optimal price and profit; When both are subject to carbon emission restrictions and retailers increase their carbon emission quotas, manufacturers will lower wholesale prices and retailers will lower retail prices.

<sec><title>Objective</title> The world is still in a phase of rapid industrialization and urbanization. Excessive carbon emissions has become the primary root cause of various urban or even global environmental problems, further impacting human physiological and psychological health. Cities are the largest sources of carbon emissions and are crucial regions for achieving carbon neutrality goals. Urban blue-green infrastructure (UBGI), comprising natural, semi-natural, or artificial green and blue spaces within cities, is considered as the most important carbon sink space in urban areas and has increasingly attracted widespread attention from researchers. However, there are still many unresolved issues regarding the effectiveness of UBGI in carbon sink enhancement and emission reduction: 1) How is the energy efficiency of carbon sink enhancement and emission reduction measured, and what factors influence it? 2) What are the mechanisms and pathways through which UBGI enhances carbon sink and reduces carbon emission? 3) How can UBGI be regulated to better enhance its effectiveness in carbon sink enhancement and emission reduction? 4) What are the limitations and potential directions for future research? This research aims to address these issues and propose scientifically sound planning strategies for UBGI construction to achieve urban carbon neutrality goals. </sec><sec><title>Methods</title> Through literature synthesis and deduction, this research organizes and analyzes the multi-scale measurement methods for UBGI’s efficiency in carbon sink enhancement and emission reduction, identifies corresponding influencing factors at each scale, and constructs multi-scale planning strategies for UBGI based on the logical framework of “measurement methods–influencing factors – planning strategies”. </sec><sec><title>Results</title> The research proposes UBGI planning strategies across three spatial scales (site, community and urban area), covering three key aspects: Carbon sequestration and sink enhancement, carbon reduction based on temperature reduction (or preservation), and travel-related carbon reduction. Based on current research gaps and planning needs, five major research topics are further identified. This research provides a detailed analysis of the measurement methods and influencing factors of UBGI’s efficiency in carbon sink enhancement and emission reduction from three perspectives: Carbon sequestration and sink enhancement, carbon reduction based on temperature reduction (or preservation), and travel-related carbon reduction. The research finds significant differences in the measurement methods for UBGI’s efficiency in carbon sink enhancement and emission reduction efficiency across different scales. Contradictory results may occur at different scales, and large-scale research often lacks characterization of internal features, leading to unclear mechanisms of influencing factors and obstructing practical planning. Based on the interpretation of UBGI’s mechanisms for carbon sink enhancement and emission reduction at different scales, this research formulates UBGI planning strategies across three spatial scales (site, community, and urban area). These strategies include: 1) At the site scale, for carbon sequestration and sink enhancement – carbon sink at the source, land balance, and ecological design; for emission reduction – symbiosis with buildings and integration into daily life. 2) At the community scale, for carbon sequestration – overall balance of revenue and expenditure, precise positioning, and proper interconnection of the carbon chain; for emission reduction – incorporation of cool islands and co-construction. 3) At the urban area scale, for carbon sequestration – enhancement of ecological space management and establishment of a carbon-safe pattern; for emission reduction – demand-based layout and organic dispersion. Finally, the research proposes five major research topics for the planning of UBGI’s carbon sink enhancement and emission reduction: How to construct unified measurement methods for UBGI’s efficiency in carbon sink enhancement and emission reduction across scales? How to measure UBGI’s efficiency in carbon reduction based on temperature reduction (or preservation) at the site scale? How to integrate the pathways of carbon sink enhancement and emission reduction for a life cycle assessment of UBGI? How to balance UBGI’s carbon sink enhancement and emission reduction with other functions to achieve the optimal layout for comprehensive benefits? How to achieve urban “carbon justice” through UBGI? </sec><sec><title>Conclusion</title> The carbon sink pathway of the strategy framework requires “carbon sink at the source – precise positioning – safe pattern”, and the emission reduction pathway requires “symbiotic integration – co-construction and sharing – organic dispersion”. The key trade-offs between these two pathways at three spatial scales may provide theoretical support and practical guidance for UBGI construction and management. The five major research topics mentioned above may offer valuable assistance for UBGI construction and future research. </sec>

Agriculture, the primary source of human food, faces sustainability threats due to the complex interplay of political, social, and environmental factors, as well as the rapid technological advancements of the current era.Therefore, this study examines the effect of e-commerce adoption and carbon emission reduction on green supply chain performance in sustainable agri-food businesses.Carbon emission reduction is also used as a mediator between e-commerce adoption and green supply chain performance.Our study also measured the moderating effect of the size of the enterprise on the relationship between e-commerce adoption, carbon emission reduction, and green supply chain performance.We further developed a synthesized research framework based on resource-based view theory and existing literature.The 634 participants' data on e-commerce adoption, carbon emission reduction, and green supply chain performance were collected from the representatives of the target population using a 22item survey questionnaire.Partial least square structural equation modeling (PLS-SEM) was used to measure the direct and indirect effects.Our results revealed that e-commerce adoption and carbon emission reduction have positive and significant effects on green supply chain performance.Results also proved that carbon emission reduction has a positive and significant mediating role in the relationship between e-commerce adoption and green supply chain performance.Moreover, results indicated that the size of the enterprise has no significant effect on the relationship between e-commerce adoption, carbon emission reduction, and green supply chain performance.Furthermore, it was concluded that e-commerce adoption and carbon emission reduction amplified green supply chain performance.Mediation clarifies its role in strengthening the relationship between e-commerce adoption and green supply chain performance in sustainable agri-food businesses.Findings provide valuable implications for policymakers and strategic management to promote e-commerce adoption in agri-food business firms.

In the context of prioritizing environmental protection gradually becoming a general trend, how to achieve a balance between paying carbon tax and seeking government subsidies for cold chain logistics service supply chain members to further reduce carbon dioxide emissions of products will be an important decision faced by CCLSP. Based on the influence of the government's carbon tax on the cold chain logistics service supply chain, this paper analyzes the influence of different government subsidy policies on the carbon emission reduction decisions of cold chain logistics service providers (CCLSP), logistics information integrators (LSI) and the supply chain as a whole under the two scenarios of joint emission reduction and independent emission reduction. The effects of different subsidy methods and subsidy rates on carbon emission reduction, wholesale price, retail price and profit of CCLSP and LSI were explored, and the results were analyzed by numerical simulation. The results show that: in the case of joint emission reduction, emission reduction subsidy has a more positive impact on supply chain emission reduction and profit. In the case of independent emission reduction, both subsidy methods have a positive impact on the wholesale price, retail price and the profit of CCLSP and LSI. Which method is more effective needs to be selected according to the size of subsidy rate. To a certain extent, this paper provides opinions for the government to formulate a scientific and reasonable subsidy policy, which can provide a basis for CCLSP to reduce carbon emissions for inquiries.

The Hu-Bao-O-Yu urban agglomeration is an important energy exporting and high-end chemical base in China, and is an important source of carbon emissions in China. The early achievement of peak carbon emissions in this region is particularly crucial to achieving the national carbon emission reduction targets. However, there is a lack of multi-factor system dynamics analysis of resource-dependent urban agglomerations in Northwest China, as most studies have focused on single or static aspects of developed urban agglomerations. This paper analyses the relationship between carbon emissions and their influencing factors, constructs a carbon emission system dynamics model for the Hu-Bao-O-Yu urban agglomeration, and sets up different single regulation and comprehensive regulation scenarios to simulate and predict the carbon peak time, peak value, and emission reduction potential of each city and urban agglomeration under different scenarios. The results show that: (1) Hohhot and Baotou are expected to reach peak carbon by 2033 and 2031 respectively, under the baseline scenario, while other regions and the urban agglomeration will not be able to reach peak carbon by 2035. (2) Under single regulation scenarios, the effect of factors other than the energy consumption varies across cities, but the energy consumption and environmental protection input are the main factors affecting carbon emissions in the urban agglomeration. (3) A combination of the economic growth, industrial structure, energy policy, environmental protection, and technology investment is the best measure to achieve carbon peaking and enhance the carbon emission reduction in each region as soon as possible. In the future, we need to coordinate the economic development, energy structure optimisation and transformation, low-carbon transformation of industry, strengthen research on carbon sequestration technology, and further increase the investment in environmental protection to make the Hu-Bao-O-Yu urban agglomeration a resource-saving urban agglomeration with an optimal emission reduction.

Faced with increasingly strict carbon emission control, high-emission enterprises need scientific and rational management systems and methods to strengthen carbon emission reduction management. Among the many management systems and methods, the carbon budget has become an effective emission reduction management tool, allowing the planning of carbon emissions and emission reduction activities and rational arrangement of economic inputs. However, judging from the research status and business practices in China and abroad, there is no general carbon budget system to guide the development of carbon emission and emission reduction activities. Based on this background, this paper first attempts to construct an enterprise carbon budget system comprising four sub-budgets: carbon emission, carbon emission reduction and cost, carbon emission rights trading, and carbon emission reduction net profit/loss. It draws on the idea of interactive control to consider the impact of changes in carbon prices, energy prices, and policy guidelines on carbon emission reductions and losses. A carbon budget management system based on interactive control is then constructed and applied to China National Aviation Holding Air China Group (AC Aviation). The research results show that the carbon budget system based on interactive control can dynamically adjust carbon emission reduction behavior based on changes in carbon and energy prices to make carbon budgeting a more viable carbon reduction tool and institutional arrangement.

Recycling subsidy and carbon tax policies are ways to achieve energy and environmental sustainability. The implementation of these policies has changed the operating environment of traditional closed-loop supply chains, while the privacy of relevant information increases the difficulty of decision-making. Under the background, this paper considers the green closed-loop supply chain (GCLSC) under the hybrid policy of recycling subsidy and carbon tax where the manufacturer is in charge of recycling and the retailer invests in green marketing. Taking green marketing cost coefficient as the retailer’s private information, this paper explores the influence of information asymmetry on optimal decisions and performance of the GCLSC. By constructing game models of information symmetry and asymmetry, the optimal decisions, economic and environmental performance, and social welfare are provided. Combined with numerical analysis, the influence of uncertainty of the manufacturer’s estimation, subsidies and carbon tax on the GCLSC is proposed. The results indicate that the uncertainty in the manufacturer’s estimation can improve the social welfare under certain conditions, but it cannot reduce carbon emissions. Recycling subsidy and carbon tax policies oppositely affect the manufacturer’s optimal decisions and carbon emissions. Information asymmetry is beneficial to the retailer. However, less uncertainty in estimation is not always better for the manufacturer. The manufacturer needs to proactively adopt strategies to stimulate the retailer’s information sharing.

Big Data provide an opportunity for decision makers to implement green production and order plans with accurate and timely consumer demand information. Thus, many enterprise begun to invest in consumer preference information based on big data (CPIBD) and green production technology. These will add their extra costs, and cost-sharing model is an effective way to improve chain members’ benefits. However, in the new environment, how to price can improve their outcomes in different cost-sharing models? And which model is the best? Aims of this paper are to solve the proposed issues considering CPIBD input and the green technology R&D cost. We chose a green supply chain with one green manufacturer and one retailer as study subject. Then, based on game theory, we proposed three cost-sharing models, and their benefit functions were developed. Using the reverse induction, we analyzed and discussed the change rules of the retail price and the wholesale price with the product green degree and the unit CPIBD cost. Then, using Matlab2014, a numerical example based on actual data was implemented. Findings: (1) with the increase of the unit CPIBD cost, the optimal retail prices will grow in the proposed three models, and the change trend of the wholesale price has a relationship with the situation whether the retailer undertakes the unit CPIBD cost or the green technology R&D cost. (2) With the growth of the product green degree, the optimal retail price and the optimal wholesale price in the three models will decrease. (3) With the increase of the unit CPIBD cost and the product green degree, benefits of supply chain members in the proposed three models will reduce. If the retailer can undertake the unit CPIBD cost or the green technology R&D cost, benefits of supply chain will be higher.

Research on green closed-loop supply chain with the consideration of double subsidy in e-commerce environment

Optimizing decision-making of regional cold chain logistics system in view of low-carbon economy

A comprehensive understanding of land use carbon metabolism characteristics from the production-living-ecological space (PLES) perspective is crucial for formulating carbon reduction strategies. As the core economic zone of northern China, the Beijing-Tianjin-Hebei (BTH) region faces severe carbon emission pressures due to rapid urbanization and intensive land use transformation. However, focusing solely on carbon metabolism calculation without considering future changes and optimization effects may prevent achieving carbon emission reduction targets. This study assessed carbon emissions and sequestration based on different land use types in PLES, constructed a multi-objective carbon reduction scenario utilizing the Dinamica-EGO model, nondominated sorting genetic algorithm II, and entropy weight-TOPSIS model, and simulated 2035 carbon reduction characteristics by coupling PLES changes. Taking the BTH region as a case study, a methodological framework and corresponding models were established. The results show that from 2000 to 2020, the total carbon emissions in the BTH region increased significantly, presenting a spatial pattern of high emissions in the southeast and low emissions in the northwest. In contrast, the overall carbon sequestration capacity showed a decreasing trend, with stronger capacity in the northwest and weaker capacity in the southeast. The multi-variable 2035 carbon emission reduction prediction model achieved an accuracy of 82.24%. The 2035 carbon reduction plan developed based on this framework outperformed the original land use plan: economic benefits, emission reduction efficiency, spatial compactness, and accessibility are projected to increase by 15.8%, 7.9%, 2.5%, and 8.3%, respectively, while carbon emissions are expected to decrease by 19.04%. The proposed PLES-based framework for carbon metabolism measurement and emission reduction simulation exhibits good applicability in regional spatial emission reduction. These findings contribute to exploring regional carbon dynamics and provide references for governments to formulate carbon reduction policies.

With the support of the fund, the recovery and dismantling volume of WEEE in China have been greatly improved, but it is far away from the provisions of the long term planning for the construction of renewable resources recovery system. In the paper, the development of waste electrical and electronic products processing field is analyzed, from which we find the shortcomings of the existing electronic waste fund operation in China. First of all, the paper analyzes the influence of household appliances dismantling fund on household appliances production industry by using partial equilibrium model, and finds that expropriation fund is not the main reason for enterprises to adjust their production and operation strategies and adopt ecological design. Through further analysis, it finds that the main reason for enterprises to adopt ecological design is firstly attributed to the public’s increasing attention to health, and secondly to the environmental standards and sections issued by the government subsidy and other policies directly related to ecological design. In terms of the fund subsidies, DEA model is used to analyze the impact of fund subsidies on the dismantling and treatment industry. The model results show that fund subsidies are effective for the dismantling and treatment of 5 major electronic waste products. On one hand, they alleviate the loss of enterprises; on the other hand, they promote energy conservation and emission reduction, and improve the efficiency of dismantling. The economic benefit, environmental and resource benefit and social benefit of the fund of dismantling and processing enterprises are all affected by the fund subsidy. Finally, it gives policy implications. In order to improve the financial efficiency of the fund, it is suggested that in the aspect of fund policy management, we should appropriately improve the current fund collection standards, adjust the products and scope of the fund collection catalogue, and formulate differentiated collection standards for the products with different environmental protection performance, so as to realize the incentive and constraint of the fund collection on the production enterprises. In terms of the fund subsidy, we should further adjust the design of subsidy amount, establish a long-term subsidy performance evaluation system and a qualification examination mechanism for enterprises entering and exiting the subsidy list, ensure the effectiveness of fund subsidy distribution, narrow the gap in the fund pool, reduce the waste of fund subsidy, and achieve the unity of economic benefits, resources and environmental benefits and social benefits.

With the rapid growth in carbon emissions from transport, reducing these emissions is becoming as important as reducing emissions from production. We took a transporter as a member of the supply chain system and constructed a three-echelon supply chain composed of a manufacturer, transporter, and retailer. This study applies the Stackelberg game and Nash game to research the optimal carbon emission reductions, pricing, and social welfare when the government imposes a carbon tax on carbon emitters and consumers are environmentally conscious. The four scenarios were designed as follows: 1) non-cooperative decision-making (NN model), in which neither carbon emission reduction cooperation nor pricing cooperation takes place; 2) local-cooperative decision-making Ⅰ (CN model), in which only cooperation in the field of carbon emission reductions takes place; 3) local-cooperative decision-making Ⅱ (NC model), in which cooperation in the field of pricing without cooperation in the area of carbon emission reductions takes place; and 4) overall-cooperative decision-making (CC model), in which both cooperation in the field of carbon emission reductions and cooperation in the area of pricing take place. The results show that economic (as profit of the supply chain system), social (as pricing and social welfare), and environmental benefits (as the optimal carbon emission reductions) for the three-echelon supply chain will improve with the deepening of cooperation among the supply chain members. Carbon tax policies have different impacts on clean and polluting supply chains. High carbon tax can encourage clean supply chain to increase carbon emission reduction, but will lead to the reduction of carbon emission of polluting supply chain. A cross-shareholding contract is designed to coordinate the supply chain and achieve the optimal state of the overall cooperative decision. Finally, the paper provides suggestions on carbon emission reductions for enterprises and policymaking for the government.