Analysis of Decision-Making in a Green Supply Chain under Different Carbon Tax Policies

Liurui Deng, Jie Tan and Jiawu Dai ()
Additional contact information
Liurui Deng: Business School, Hunan Normal University, Changsha 410081, China
Jie Tan: Business School, Hunan Normal University, Changsha 410081, China
Jiawu Dai: Business School, Hunan Normal University, Changsha 410081, China

Mathematics, 2023, vol. 11, issue 22, 1-27

Abstract: With the growing severity of global environmental issues, the international community has reached a consensus on the importance of reducing and controlling carbon emissions. As a result, an increasing number of consumers are opting to purchase green products in order to reduce the emission of greenhouse gases. This trend has prompted supply-chain enterprises to invest in green innovation. Simultaneously, carbon tax policies have gained significant attention from governments worldwide due to their dual role as environmental laws and fiscal-policy tools. Considering consumers’ preference for green products and the risk of R&D failure associated with them, this study focuses on the effects on emissions reductions and profits associated with different carbon tax policies for a green supply chain consisting of a manufacturer and a retailer. The results reveal that (1) increases in the carbon tax per unit of product motivate the manufacturer to increase R&D efforts; (2) wholesale and retail prices follow a pattern of initial increase and subsequent decrease as the carbon tax per unit of product rises; (3) higher carbon taxes per unit of product generally lead to lower manufacturer profits, while both carbon emissions and retailer profits can increase with a per-unit carbon tax under certain circumstances; and (4) the increase in the proportion of the population with green preferences can yield long-term benefits for both the retailer and the manufacturer, yielding an inverted U-shaped relationship with carbon emissions.

Keywords: carbon policy; carbon emission reduction; green supply chain; green product R&D (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.mdpi.com/2227-7390/11/22/4631/pdf (application/pdf)
https://www.mdpi.com/2227-7390/11/22/4631/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jmathe:v:11:y:2023:i:22:p:4631-:d:1279095

Access Statistics for this article

Mathematics is currently edited by Ms. Emma He

More articles in Mathematics from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().