Abstract
The reduction in carbon emissions by industrial enterprises is an important means for promoting environmental protection and achieving sustainable development. To determine the impact of carbon emissions reduction on supply chain operation and financing decision-making, in this study we designed three financing strategies, i.e., bank loan financing, equity financing, and hybrid financing (a combination of bank loan financing and equity financing), for a manufacturer (leader) and a low-carbon supply chain composed of a capital-constrained retailer, constructed Stackelberg game models, solved the equilibrium results under each financing strategy using the reverse recursion method, and revealed the financing preference of the supply chain member companies through comparative analysis. The results showed that the increase in the consumers’ low-carbon preference and equity financing ratio have positive impacts on supply chain equilibrium, a result that is opposite that for the impact of the interest rate of bank loan financing; additionally, the abovementioned three factors jointly determine the profit of the manufacturer of the low-carbon supply chain, while the retailer’s profit is affected by the equity dividend ratio. Finally, we present the conditions for the financing preference of the manufacturer and the retailer. The findings of this study can provide references for low-carbon supply chain companies to make appropriate management decisions.
Highlights
With global warming and the increasingly excessive consumption of resources, the progress of social and economic development has been severely hindered [1]
We examined the financing strategy of the capital-constrained supply chain while taking consumers’ low-carbon preference into account
To determine the impact of carbon emissions reduction on supply chain operations and financing decisions and to solve retailers’ financial constraints, we analyzed three financing strategies, i.e., bank loan financing, equity financing, and hybrid financing, which is different from the research on bank loans, trade credit, and mixed financing designed by Li and Yang [31,36]
Summary
With global warming and the increasingly excessive consumption of resources, the progress of social and economic development has been severely hindered [1]. Incorporating sustainability and low-carbon concepts into supply chain operation management is a win-win strategy for manufacturers and retailers, and it can create substantial environmental and economic benefits for supply chain enterprises. Retailers that have obtained equity financing can return to the supply chain to participate in market competition with a low-cost advantage and achieve sustainable development of the supply chain [16]. To broaden the research scope in this field, in this study, we focused on consumers’ lowcarbon preference and supply chain operations to reduce manufacturers’ carbon emissions to investigate the impact of equity financing on the low-carbon supply chain performance. How do the interest rate of bank loan financing, the equity financing ratio, and consumers’ low-carbon preference affect carbon emissions reduction efficiency, order quantity, and profits of supply chain enterprises?.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
