Abstract
Climate change and greenhouse gas emission reduction have become pressing concerns in recent years. Carbon trading systems and emission-reduction cost-sharing contracts are important emission-reduction measures, under the two mechanisms, this paper considers a dynamic emission-reduction technology investment decision-making problem in a dyadic supply chain consisting of a manufacturer and a retailer. In considering the influence of consumers' low-carbon preferences on market demand as well as the impact of uncertainty on carbon emission-reduction behaviour, this paper (1) constructs the investment game model under cost-sharing coordination between manufacturers and retailers; (2) adopts differential game and dynamic optimisation methods to obtained investment strategies for manufacturers and retailers under cost-sharing contracts.; and (3) uses a numerical simulation method to simulate the path evolution process of each state variable and, by analysing the sensitivity of various parameters, to determine the influence of various parameters on the decision making of emission reduction among stakeholders. The study finds that under the carbon trading system, cost-sharing contracts have a regulatory effect on enterprise emission-reduction investment and enterprise profits, and that the impact of regulatory effects increases over time. Likewise, the evolution path of the parameters used for various indicators presents a strengthened trend over time. The results show that it is necessary to enhance the cooperative development and exchange of carbon emission-reduction technology among enterprises.
Highlights
Global warming caused by greenhouse gas emissions has become a pressing concern, internationally, in recent years
To study the production and emission control decision-making of the supply chain, Xu et al considered how wholesale prices and cost-sharing contracts can lead to an ordered supply chain system: manufacturers use green production technology to reduce carbon emissions associated with unit products, and cooperate with retailers through a contract to sell products to consumers with low-carbon preferences [4]
In the carbon trading system based on carbon quotas that was implemented in China, the government grants enterprises a certain carbon emission quota, and if they exceed the quota allocated by the government, they need to purchase from the society; at the same time, manufacturers reduce the carbon emissions generated in the production and use of products through investment in emission- reduction technology
Summary
Global warming caused by greenhouse gas emissions has become a pressing concern, internationally, in recent years. To study the production and emission control decision-making of the supply chain, Xu et al considered how wholesale prices and cost-sharing contracts can lead to an ordered supply chain system: manufacturers use green production technology to reduce carbon emissions associated with unit products, and cooperate with retailers through a contract to sell products to consumers with low-carbon preferences [4]. In the carbon trading system based on carbon quotas that was implemented in China, the government grants enterprises a certain carbon emission quota, and if they exceed the quota allocated by the government, they need to purchase from the society; at the same time, manufacturers reduce the carbon emissions generated in the production and use of products through investment in emission- reduction technology Against this policy backdrop, the present paper studies the impact of carbon emission-reduction technology investment.
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