Abstract
The low-carbon economy has become the focus of global attention and scientific measurement standards with the concepts of low energy consumption, low pollution, and sustainable development. More and more attentions are paid to the research of low-carbon supply chains. Based on a two-level low-carbon supply chain in the context of carbon trading, a Stackelberg game model was established for government subsidies to determine a coordinated and balanced solution for supply chains in situations dominated by manufacturers. The optimal strategies for low-carbon technology innovation are analyzed within the context of governmental subsidies. This study’s conclusions are as follows: (1) When government subsidies are in place, regardless of who the government subsidies are meant for, manufacturers and retailers that do not generate carbon emissions will transfer the subsidies to the companies that generate carbon emissions by adjusting wholesale prices and retail prices to maximize their own profits. (2) When consumer prices are sensitive, the government’s optimal subsidy intensity increases as consumers’ low-carbon preferences increase. When consumer prices are not sensitive, the government should not provide any subsidies. (3) When consumers’ low-carbon preferences are weak, the retail price of products will decrease with the increase in subsidies; when consumers’ low-carbon preferences are strong, the opposite dynamic occurs.
Highlights
The ‘low-carbon economy’ was first mentioned by officials in the 2003 British Energy White Paper ‘The Future of Our Energy: Creating a Low-Carbon Economy.’ As a pioneer of the first industrial revolution, Britain fully recognized the negative effects of climate change
Luo et al found that companies introduced capital investment in carbon emission reduction technological research and development into the supply chain game model based on the carbon trading mechanism [25]
Nielsen, IE et al studied the impact of government subsidy strategies on closed-loop supply chain decisions, and studied the government’s subsidies to consumers and manufacturers to maximize profits, social welfare, and the impact of carbon emissions [44]
Summary
The ‘low-carbon economy’ was first mentioned by officials in the 2003 British Energy White Paper ‘The Future of Our Energy: Creating a Low-Carbon Economy.’ As a pioneer of the first industrial revolution, Britain fully recognized the negative effects of climate change. As a pioneer of the first industrial revolution, Britain fully recognized the negative effects of climate change In this regard, the transition to a low-carbon economy has become a major trend in the development of the world economy. This study is based on a secondary supply chain consisting of a manufacturer and retailer It is determined by the research of other scholars and the relationship between the government and enterprises. The structure of this paper is as follows: Section 2 is a literature review that summarizes the current research status of low-carbon technology innovations under government subsidies and from independent enterprise (i.e., no subsidies).
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