Abstract
Carbon emissions reduction in supply chain is an effective method to reduce the greenhouse effect. The paper investigates the impacts of carbon trading price and consumers’ environmental awareness on carbon emissions in supply chain under the cap-and-trade system. Firstly, it analyzes the centralized decision structure and obtains the requirements to coordinate carbon emissions reduction and order quantity in supply chain. Secondly, it proposes the supply chain coordination mechanism with revenue-sharing contract based on quantity discount policy, and the requirements that the contract parameters need to satisfy are also given. Thirdly, assuming the market demand is affected by consumer’s environmental awareness in addition form, the paper proposes the methods to determine the optimal order quantity and the optimal level of carbon emissions through model optimization. Finally, it investigates the impacts of carbon trading price on carbon emissions in supply chain. The results show that clean manufacturer’s optimal per-unit carbon emissions increase as the carbon trading price increases, while nongreen manufacturer’s optimal per-unit carbon emissions decrease as the carbon trading price increases. For the middle emissions manufacturer, the optimal per-unit carbon emissions depend on the relationship between the carbon trading price and the carbon reduction coefficient.
Highlights
To control and reduce carbon emissions is a global problem
Our research question is that how the carbon trading price and consumers’ environmental awareness (CEA) affect carbon emissions reduction in supply chain under cap-and-trade system
This paper relates to three major research areas, which are supply chain carbon footprint evaluation and management, decision problem of carbon emissions reduction in supply chain, impacts of CEA on carbon emissions reduction, and supply chain coordination
Summary
To control and reduce carbon emissions is a global problem. With “United Nations Framework Convention on Climate Change” and “Kyoto Protocol” signed and coming into force, carbon emissions reduction and the cap-and-trade system have become the consensus and inevitable trend. When we solve the problem of carbon emissions reduction cooperation and coordination among supply chain enterprises effectively can we fundamentally promote carbon emissions reduction work. How to meet consumers’ low-carbon preference has become a key guarantee to win over in the fierce market competition [3] It is of great value and practical significance to study the carbon emissions reduction in the supply chain with considering carbon trading price and consumers’ environmental awareness (CEA). Our research question is that how the carbon trading price and CEA affect carbon emissions reduction in supply chain under cap-and-trade system. Our contributions with respect to the previous literature in this field are that we take both the carbon trading price and CEA into account and propose the coordination mechanism in supply chain carbon emissions reduction under cap-and-trade system.
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