Abstract
Under a carbon tax, with the constraint of carbon emissions reduction, by establishing game theoretical models for a low-carbon supply chain, the article investigates how the carbon tax rate and risk aversion degree may affect retail price, product carbon emission degree, and profits of the manufacturer, the retailer, and the entire supply chain. The results show that product carbon emission degree and supply chain profit in a centralized supply chain are higher than those in a decentralized supply chain. With a risk-averse manufacturer, the product’s carbon emission degree and supply chain profit will further decrease. With increased risk aversion, the manufacturer's profit and total channel profit will decrease, but the retailer's profit will be affected by the carbon tax rate. Carbon reduction investment cost-sharing contracts can contribute to the implementation of increased demand for low-carbon products and decreased retail prices. Regardless of whether the manufacturer is risk-averse, a carbon reduction investment cost-sharing contract can increase the overall efficiency and profit of the supply chain. Finally, the results are verified by numerical examples.
Highlights
With the rapid economic development, environmental damage and pollution have become increasingly severe and greenhouse gas emissions have seriously exceeded standards
In the centralized decision-making process of the supply chain, it is assumed that there is a unique decision-maker. e manufacturer and retailer are taken as a whole to make decisions; that is, the retail price p of the product and the low-carbon emission reduction level τ of the product are determined with the goal of maximizing the overall profit of the supply chain. e overall expected profit of the supply chain is as follows: E
We study the impact of carbon tax rates and manufacturers’ risk-averse on low-carbon supply chain pricing strategies, product carbon emission reduction levels, the profits of the supply chain members, and the overall profits of the supply chain; the article builds a low-carbon emission reduction investment cost-sharing contract to coordinate and optimize the low-carbon supply chain and obtain the following conclusions
Summary
With the rapid economic development, environmental damage and pollution have become increasingly severe and greenhouse gas emissions have seriously exceeded standards. Xiong et al [12] analyzed the impacts of a carbon tax and consumer environmental awareness on manufacturers’ unit carbon emissions and supply chain members’ profits under two different channel structures. Is article studies the decision-makers’ risk aversion attributes on lowcarbon supply chain pricing strategies, reduction levels of product carbon emission, the profits of supply chain members, and the overall profits of the supply chain. Based on this research gap, different from the existing article, this article considers a two-level low-carbon supply chain composed of a manufacturer and a retailer under a carbon tax policy. E impacts of manufacturers’ risk aversion coefficients and carbon tax rates on low-carbon supply chain pricing strategies, product carbon emission reduction levels, the profits of supply chain members, and the overall profits of the supply chain are studied.
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