Research on joint emission reduction in supply chain based on carbon footprint of the product

Abstract

This paper considers a two-echelon manufacturer-retailer supply chain system based on carbon footprint under time-varying demand, the purpose of which is to study the effect of joint emission reduction on emission reduction level and revenues of the retailer and the manufacturer, compared with non-joint. Firstly, it constructs the revenue model of non-joint emission reduction and confirms the optimal emission reduction level. Secondly, it adopts the inverse derivation to get the revenue model of joint emission reduction with carbon footprint, propaganda effect and cost-sharing mechanism, and acquires its optimal emission reduction level. Finally, the relationships of decision variables are explored through simulation analysis, and it conducts comparison research of non-joint and joint emission reduction. The results illustrate that the higher the manufacturer’s emission reduction level, the smaller the carbon footprint, which improves the low-carbon degree and increases the sales scale, then the manufacturer’s positivity of emission reduction is enhanced. The carbon emission reduction level rises with carbon footprint decreases, but the cost-sharing mechanism will stimulate the manufacturer to boost its carbon emission reduction level to some extent. With regard to the interaction of the propaganda effect and propaganda cost-sharing mechanism, the joint carbon emission reduction level can reach the maximum under the certain condition and it is much higher than that of non-joint. This will provide some reference for members in supply chain to make joint emission reduction strategies.