Coal-Electric Power Supply Chain Reduction and Operation Strategy under the Cap-and-Trade Model and Green Financial Background

Bowen Da, Chuanzhe Liu, Nana Liu, Yufei Xia and Fangming Xie
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Bowen Da: School of Management, China University of Mining and Technology, Xuzhou 221116, China
Chuanzhe Liu: School of Management, China University of Mining and Technology, Xuzhou 221116, China
Nana Liu: School of Management, China University of Mining and Technology, Xuzhou 221116, China
Yufei Xia: Business School, Jiangsu Normal University, Xuzhou 221116, China
Fangming Xie: School of Management, China University of Mining and Technology, Xuzhou 221116, China

Sustainability, 2019, vol. 11, issue 11, 1-17

Abstract: For reliving the pressure of air pollution and corresponding the sustainability development policy in China, the companies are urging the creation of a highly productive low-carbon supply chain. This work uses price regulation, the cap-and-trade model, and a green financial policy background to establish a strategy for the coal–electric power supply chain with two-level carbon reduction and operation with financial constraints. A Stackelberg model was built to help investigate the rate of thermal order realization, the carbon reduction strategy in the coal enterprise, and the amount of thermal energy ordered in the electric enterprise. Results show that under a green financial background, a high bank loan discount rate for investing in carbon reduction technology equates to large carbon reduction in coal enterprises, large quantities of thermal energy ordered in electric enterprises, and high profit for coal and electric enterprises. However, the realization rate of thermal power ordered decreased when the price regulation become strict, thereby reducing the profit and carbon emission in electric enterprise. Therefore, the thermal price regulation level increased, the profit on both company and the production did not respond with sensitivity, and the government could encourage a low carbon model by controlling the bank loan rate.

Keywords: coal–electric supply chain; double price regulation of coal–electric chain; green finance; carbon reduction (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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