Dynamic pricing and joint carbon reduction strategies at the production and consumption end in a dual-channel fuel vehicle supply chain

Yongxi Yi, Ao Fu, Sheng Zhang and Yuqiong Li

Energy Economics, 2024, vol. 131, issue C

Abstract: This paper investigates carbon reduction in a fuel automotive supply chain. It consists of a manufacturer responsible for carbon reduction and opening an online channel opportunely and a retailer who markets and sells the product through traditional offline channels. Consumers have a preference for low-carbon and low-fuel consumption. It first analyzes decentralized and centralized decision-making under dual channels as a benchmark for comparison. Then, compare the performance of single and dual channels under decentralized decision-making to explore the advantages and conditions of dual channels and link centralized decision-making to reveal the double marginal effect of the supply chain. Finally, it designs a marketing cost-sharing contract to coordinate the behavior of all parties in the supply chain. The results suggest that as long as consumer preference for online channels reaches a certain threshold, dual-channel operation leads to higher double-ended carbon reduction investment, lower prices, and higher total supply chain profits than single-channel, but instead decreases profits for the retailer. Besides, in contrast to decentralized decision-making, marketing cost-sharing contracts can improve profits for all parties in the supply chain, enhance carbon and fuel consumption reduction investment, and partially address the double-marginal effect of the supply chain.

Keywords: Joint carbon reduction; Vehicle supply chain; Dual-channel; Consumption preference (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:131:y:2024:i:c:s014098832400104x

DOI: 10.1016/j.eneco.2024.107396

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