Optimal environment design and revenue allocation: Under cap-and-trade policy in cooperation supply chain

Abstract

Since the supply chains of the world’s 2500 largest companies alone emit more than 20% of global greenhouse gases, how to achieve optimal cooperative supply chain emission reduction effects in supply chain optimal emission reduction efforts and effectively distribute revenue in cooperative supply chains is a difficult complex problem. In this paper, a green supply chain model of joint production is constructed based on the framework of the Stackelberg model and with carbon trading under three quota methods being taken into account. First, from the perspective of a supply chain leader, we obtain the optimal efforts to reduce emissions, the optimal price, and the yield of the products. Then, from the perspective of carbon market regulators, we obtain the environment that is most conducive to reducing emissions in the supply chain. Finally, we offer a profit distribution method based on the modified Shapley value that maximizes fairness and stability. The data calculation example analysis further verifies the results of the theoretical analysis.