Impacts of financing mechanism and power structure on supply chains under cap-and-trade regulation

Ruihong Tang and Lei Yang

Transportation Research Part E: Logistics and Transportation Review, 2020, vol. 139, issue C

Abstract: This paper develops a low-carbon supply chain consisting of a capital-constrained manufacturer and a capital-abundant retailer where bank loans and early payment are investigated. Under each power structure, there always exists a financing equilibrium, i.e., early payment. Compared with bank loans, early payment could produce lower carbon emissions and higher social welfare in the retailer-led power structure; but it damages environment and social welfare, and leads to the conflict between profitability and environmental goals in the manufacturer-led case. Finally, impacts of power structure on financing mechanism, carbon emissions, and performance are analyzed to provide more managerial implications.

Keywords: Supply chain management; Bank loans; Early payment; Cap-and-trade; Power structure (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (48)

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DOI: 10.1016/j.tre.2020.101957

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