Abstract

Carbon emissions are a critical concern in the realm of energy consumption, with many nations committed to curbing them and striving for carbon neutrality. This research addresses a specific gap in the literature by focusing on carbon emission reduction in the industrial sector through the application of supply chain management (SCM) principles under a monopolistic competition context and by utilizing carbon neutral indicators. Specifically, we develop a mathematical model integrated into an agent-based simulation framework and employ experimental design methods to determine the most optimal decision-making processes for incorporating supply chain carbon neutral indicators. Our findings highlight the effectiveness of two specific carbon neutral indicators within SCM: green-credit policies and the promotion of green products. These measures contribute significantly toward reducing global carbon emissions. This paper offers insights for government decision-makers regarding ideal implementation levels and strategies for green credit policies and the promotion of green products within supply chain environments. It also provides guidance to manufacturers on how to achieve profit maximization while progressing towards carbon neutrality.

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