Abstract
In the current low-carbon economy, the government has adopted carbon taxes and carbon trading policies to control the carbon emissions of manufacturers. As consumers become increasingly aware of low-carbon, some retailers have also started investing in low-carbon to shape their public image and increase their competitiveness to attract more customers. In this paper, the Stackelberg game method is utilized to solve the model, and the graphs are used to analyze the benefits of retailers' low-carbon investment on the supply chain through numerical analysis. It is found that when the emission reduction cost coefficient of manufacturers is relatively low, manufacturers are willing to reduce carbon emissions. At this time, increasing carbon tax and the carbon emission permits price can effectively promote the emission reduction behavior of manufacturers, because it increases demand for products and the profit of manufacturers and retailers. However, when the emission reduction cost coefficient of the manufacturers is quite high, increasing carbon tax and carbon emission permits price cannot effectively promote the emission reduction behavior, because this situation of the emission reduction reduces the profit of manufacturers. The main contribution of this paper discovers that the green cost coefficient of retailers' low-carbon investment will adjust the impact of the carbon tax and the carbon trading price on the profits of retailers and manufacturers which proves that retailers’ low-carbon investment is beneficial to the supply chain. When the emission reduction cost coefficient is high and the green cost coefficient is low, increasing the carbon tax or carbon emission permits price can increase the profit of manufacturers and retailers. Finally, we design a supply chain coordination of comprehensive sharing contact for retailers and manufacturers. The result shows that this contract has economic and environmental benefits, and that it is beneficial for the environment and economy of sustainable development.
Highlights
Rapid economic development has caused environmental problems
Tao et al suggested that in the supply chain, retailers’ investment in radio frequency identification (RFID) technology is an effective method with which to solve inventory misplacement problems, and the results showed that the investment in RFID technology by retailers is more beneficial to both suppliers and retailers, and that end customers will benefit more [31]
When the retailers make low-carbon investments and greenness coefficient is low, the profit of manufacturers and retailers is positively correlated with carbon tax and carbon emission price
Summary
Rapid economic development has caused environmental problems. Awan et al have put forward that the development of the industrial economy impacts the quality of human life and damages the natural environment. In the reduction of carbon emissions and promoting the sustainable development of the global economy, countries worldwide generally adopt carbon tax and carbon trading as means through which to control carbon emissions [2]. The energy-saving and emission-reduction initiatives of manufacturing enterprises are mainly driven by government policies. As consumers become increasingly aware of low-carbon, many manufacturers have already begun to produce environmentally friendly products to meet consumer needs. Some retailers have recently begun to introduce low-carbon investment in the packaging and distribution processes. The world’s largest retailer, wants to become a “low-carbon supermarket” and invest in environmentally friendly and energy-efficient stores, and has proposed a clean production solution for suppliers. In the low-carbon economy, two forces exist in forcing enterprises to accomplish industrial upgrading, energy conservation, and emission reduction. The retailers’ low-carbon investment can alter the supply chain
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