Carbon Emissions and Sustainable Supply Chains: A Stackelberg Game Analysis of Multinational Firm Relationships

Bo Tian, Meiqi Liu, Bin Pan, Guanghui Yuan and Fei Xie ()
Additional contact information
Bo Tian: School of Information Management and Engineering, Shanghai University of Finance and Economics, Shanghai 200090, China
Meiqi Liu: School of Information Management and Engineering, Shanghai University of Finance and Economics, Shanghai 200090, China
Bin Pan: School of Information Management and Engineering, Shanghai University of Finance and Economics, Shanghai 200090, China
Guanghui Yuan: School of Economics and Management, Shanghai University of Political Science and Law, Shanghai 201701, China
Fei Xie: School of Finance, Shanghai University of Finance and Economics, Shanghai 200090, China

Mathematics, 2024, vol. 12, issue 24, 1-23

Abstract: Against the backdrop of global climate change and sustainable development, carbon emissions within transnational closed-loop supply chains have become a critical area of research. This paper utilizes a Stackelberg game model to analyze the relationship between a single export manufacturer and an import retailer. The study investigates the optimal solutions of the supply chain model—wholesale price, retail price, sales volume, and profit—across three consumer preference scenarios: no obvious preference, pure green preference, and pure new preference. Furthermore, this paper examines the impact of carbon emissions per unit of product on supply chain decision-making under two scenarios: with and without carbon trading. Carbon trading, which significantly increases unit costs, exerts a profound influence on the strategic decisions of both manufacturers and retailers. In addition, this paper incorporates carbon tariffs and taxes into its analysis, providing a theoretical foundation for governments and policymakers to promote sustainable production and consumption practices. The validity of the model is confirmed through numerical simulations, which reveal that under pure green and pure new preference scenarios, original equipment manufacturers (OEMs) are more inclined to invest in emissions reduction to minimize tariff costs. In contrast, under no obvious preference scenarios, OEMs are more likely to adjust product portfolios to evade carbon tariffs. This research advances the understanding of low-carbon production strategies in transnational supply chains, offering both theoretical insights and practical guidance for balancing economic and environmental objectives.

Keywords: remanufacturing decisions; consumption preferences; carbon tax; carbon tariff; carbon markets; carbon trading (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-7390/12/24/3983/pdf (application/pdf)
https://www.mdpi.com/2227-7390/12/24/3983/ (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:12:y:2024:i:24:p:3983-:d:1546871

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 ().