Government-led low carbon incentive model of the online shopping supply chain considering the O2O model

Abstract

This study contributes to a low-carbon incentive model for the online shopping supply chain on the basis of online stores and their suppliers, with regard to the government’s low-carbon incentives, combined with online to offline (O2O) operational background. An improved supply chain cost expression is used to construct the incentive model that analyzed the total cost and the cost of carbon emissions caused by the supply chain’s collaborative operation, considering the independent and comprehensive incentives. Results show that the total cost of the supply chain increases, but the cost of the environment has not changed if the carbon emission is limited by the government. In addition, the total cost of the supply chain is decreased, but the cost of carbon emission is increased if the carbon tax is levied, and the total and carbon emission costs of the supply chain are reduced to a certain extent based on the O2O incentive. Moreover, the supply chain’s total cost and the carbon emissions’ cost have been greatly improved if the comprehensive incentive is considered.