Social influencer spillover effects under cap-and-trade and carbon tax regulation: the choice between marketplace or reseller mode

Abstract

PurposeThe purpose of this paper is to analyze manufacturers' production decisions and governments' low-carbon policies in the context of influencer spillover effects.Design/methodology/approachThis paper investigates the impact of the social influencer spillover effect on manufacturers' production decisions when they collaborate with intermediary platforms to sell products through marketplace or reseller modes. Game theory and static numerical comparison are used to analyze our models.FindingsFirstly, under low-carbon policies, the spillover effect does not always benefit manufacturer profits and changes non-monotonically with an increasing spillover effect. Secondly, in cases where there are both a carbon emission constraint and a spillover effect present, if either the manufacturer or intermediary platform holds a strong position, then marketplace mode benefits manufacturer profits. Thirdly, regardless of business mode used when environmental damage coefficient is high for products; government should implement cap-and-trade regulation to optimize social welfare while reducing manufacturers’ carbon emissions.Practical implicationsThis study offers theoretical and practical research support to assist manufacturers in optimizing production decisions for compliance with carbon emission limits, enhancing profits through the development of effective influencer marketing strategies, and providing strategies to mitigate carbon emissions and enhance social welfare while sustaining manufacturing activities.Originality/valueThis paper addresses the limitations of prior research by examining how the social influencer spillover effect influences manufacturers' business mode choices under government low-carbon policies and analyzing the social welfare of different carbon emission restrictions when such spillovers occur. Our findings provide valuable insights for manufacturers in selecting optimal marketing strategies and business modes and decision-makers in implementing effective regulations.