The coordination strategies of coal supply chain considering carbon emissions reduction

Abstract

The coordination strategies of a two-echelon coal supply chain consisting of a coal enterprise and a downstream enterprise are proposed considering market low-carbon preference and carbon emissions reduction. The cleaning and matching degree (CMD) is introduced to measure the quality of commercial coal which have influence on the production cost and energy consumption of the downstream enterprise. Stackelberg models are established to investigate the coordination strategies using cost-sharing contracts. We use backward induction to solve the models and analyse the optimal decisions in four scenarios. It is revealed that promoting CMD level can extend the market portion and realise more profit. The cost-sharing contract can coordinate the supply chain members, obtain profit Pareto improvement in certain condition of cost-sharing ratio and establish a win-win situation. Additionally, the emission reduction is greater than that under decentralised decision-making.