Research on Supply Chain Optimization Considering Consumer Subsidy Mechanism in the Context of Carbon Neutrality

Zheng Liu, Wenzhuo Sun, Bin Hu, Chunjia Han, Petros Ieromonachou (), Yuanjun Zhao and Jiazhuo Zheng
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Zheng Liu: School of Management, Shanghai University of Engineering Science, Shanghai 201620, China
Wenzhuo Sun: School of Management, Shanghai University of Engineering Science, Shanghai 201620, China
Bin Hu: School of Management, Shanghai University of Engineering Science, Shanghai 201620, China
Chunjia Han: Department of Management, Birkbeck, University of London, London WC1E 7HX, UK
Petros Ieromonachou: Greenwich Business School, University of Greenwich, Old Royal Naval College, Park Row, London SE10 9LS, UK
Yuanjun Zhao: School of Accounting, Nanjing Audit University, Nanjing 211815, China
Jiazhuo Zheng: School of Accounting, Nanjing Audit University, Nanjing 211815, China

Energies, 2023, vol. 16, issue 7, 1-14

Abstract: With the proposal of China’s “carbon peak, carbon neutral” strategy, the increasing awareness of low carbon production among consumers, and the government’s introduction of carbon trading mechanism and low carbon consumption subsidy policies, enterprises are facing good opportunities for development. However, how the government can reasonably formulate low carbon policies and how enterprises can implement optimal low-carbon production decisions are still key issues in China’s low-carbon transition development. In this context, this paper is based on the carbon trading mechanism and carbon consumption subsidies. In this context, based on the carbon trading mechanism, this paper focuses on green production and green consumption, considers the impact of low-carbon consumer preferences and government subsidies on enterprises’ low-carbon production decisions, and uses the optimal theory to study the optimal pricing strategy and the optimal carbon reduction strategy. The study shows that the increase in carbon price has a positive effect on the increase in enterprise profit; the increase of carbon emission has a negative effect on the increase of enterprise profit and the high carbon price will intensify this effect. In addition, changing the intensity of government subsidies to consumers will lead to the change of enterprise carbon emission strategy. The study of this paper provides a certain reference for the government to reasonably formulate carbon trading prices and consumer low-carbon subsidies. In addition, considering consumer low-carbon preferences is also conducive to promoting green production practices of enterprises, thus promoting the realization of the carbon neutral strategy.

Keywords: trading mechanism; consumer subsidies; pricing strategy; carbon emissions (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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