Abstract
We consider a wood forest product supply chain consisting of a forestry company and a wood forest products manufacturer, where the forestry company produces timber and forestry carbon sinks, and the manufacturer consumes timber and carbon emission rights. A Stackelberg model is adopted to investigate the forest scale and carbon emission reduction decisions of the supply chain. We design and analyze the carbon emission reduction cost-sharing (ERCS) mechanism and carbon sink cost-sharing (SCS) mechanism, respectively. The result shows that both contracts can help the wood forest product supply chain to achieve higher profits. The ERCS mechanism may encourage the manufacturer to increase emission reduction level and the forestry company to expand the forest scale. The SCS mechanism is beneficial to the expansion of carbon sink forests; however, it may lead to the manufacturer decreasing investment in carbon emission reduction measures.
Highlights
As global warming intensifies, mitigating climate change and improving the living environment have become a core consensus of most countries worldwide
We focus on the impact of the cap-and-trade mechanism on the wood forest product supply chain and work out the optimal strategy for the forestry company and the manufacturer, so as to guide the members of the wood forest product supply chain to make the right decisions
We consider a wood forest product supply chain consisting of a forestry company who produces timber and forestry carbon sinks, and a wood forest products manufacturer who consumes timber and carbon emission rights
Summary
As global warming intensifies, mitigating climate change and improving the living environment have become a core consensus of most countries worldwide. In the wood forest product supply chain, the manufacturer and the forestry company trade timber as well as forestry carbon sinks (which can offset carbon emissions). 3. For the purpose of promoting cooperation between the forestry company and the manufacturer, this paper designs and compares two coordination contracts: carbon emission reduction cost-sharing (ERCS) contract and a carbon sink cost-sharing (SCS) contract. For the purpose of promoting cooperation between the forestry company and the manufacturer, this paper designs and compares two coordination contracts: carbon emission reduction cost-sharing (ERCS) contract and a carbon sink cost-sharing (SCS) contract It explores the possibility of a joint emission reduction between the manufacturer and the forestry company and provides some new ideas for the low carbon development of the wood forest product supply chain.
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