Low-Carbon Supply Chain Operation Decisions and Coordination Strategies Considering the Consumers’ Preferences

Abstract

Implementing the low-carbon transformation strategy has become an inevitable choice for manufacturing enterprises. However, suppliers often overlook the impact of consumers’ preferences for low-carbon products (LCPs) on their own low-carbon strategies. Based on this idea, this study uses game theory models to analyze how consumer preferences affect suppliers’ decision-making and coordination strategies in low-carbon supply chains (LCSCs). Results show that (1) manufacturers and retailers are more likely to produce and promote LCPs as consumers become more sensitive to carbon emission reduction (CER); (2) manufacturers are less likely to produce LCPs but retailers are more likely to promote them as consumers become more sensitive to promotional rates; and (3) manufacturers are less likely to produce LCPs but retailers are more likely to promote them as consumers become more sensitive to retail prices. This study concludes that consumer preferences play a crucial role in determining suppliers’ decisions and coordination strategies in LCSCs.