Abstract
A differential game model is established to analyze the impact of emissions reduction efforts and low-carbon product promotion on the reduction strategies of low-carbon product manufacturers (subsequently referred to as manufacturers) and the retailers of such products in a dynamic environment. Based on this model, changes in emissions reduction efforts and promotional efforts are comparatively analyzed under three scenarios (retailers bearing the promotional cost, manufacturers bearing the promotional cost, and centralized decision-making). The results are as follows: (1) the trajectory of carbon emissions reduction per product unit is the highest when the supply chain is under centralized decision-making, followed by when manufacturers bear the promotional cost, and lastly when retailers bear the cost; (2) when manufacturers bear the promotional cost, the market demand, emissions reduction effort, and promotional effort are higher, although the unit retail price is higher than when retailers bear the promotional cost; and (3) under centralized decision-making, the unit retail price is the lowest; however, sales volume, the emissions reduction effort, and the promotional effort are all higher than those in the other scenarios.
Highlights
The United Nations Intergovernmental Panel on Climate Change (IPCC) noted that despite being a natural change, global warming is largely attributable to human activities, to carbon dioxide emissions from human activity
Adopting a long-term and dynamic perspective, this paper examines the emissions reduction efforts and promotional issues faced by manufacturers and retailers when low-carbon promotional costs are covered differently, and establishes a decision-making basis for the business strategy development of low-carbon product manufacturers
Carbon emissions reduction has become a popular research topic in China and abroad, and an abundance of literature is available, including articles [1,2,3,4,5,6] on the impact of the low-carbon preferences of consumers on the low-carbon supply chain and articles [7,8,9,10] that analyze the impact of low-carbon promotion on low-carbon industry development
Summary
The United Nations Intergovernmental Panel on Climate Change (IPCC) noted that despite being a natural change, global warming is largely attributable to human activities, to carbon dioxide emissions from human activity. Wang et al [6] assumed consumers are environment conscious and observed the impact of market low-carbon preference on the performance of a two-echelon supply chain. Carbon emissions reduction has become a popular research topic in China and abroad, and an abundance of literature is available, including articles [1,2,3,4,5,6] on the impact of the low-carbon preferences of consumers on the low-carbon supply chain and articles [7,8,9,10] that analyze the impact of low-carbon promotion on low-carbon industry development. The paper compares the impact of various approaches for covering promotional costs in the low-carbon supply chain to establish a basis for decision-making by manufacturers and retailers.
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