Optimal Carbon Emission Reduction Cooperation Models for Electricity Supply Chain of Existing Communities

YiNing Xiang, ZengRui Kang, Yongkai Ma and Wei Chen

Emerging Markets Finance and Trade, 2025, vol. 61, issue 12, 3895-3912

Abstract: This research delves into carbon emission reduction (CER) investment within existing communities for low-carbon urban development, with a focus on selecting optimal CER investment cooperation models for existing communities and electricity enterprises. Given the constraint on the minimum level of CER investment within existing communities, a two-stage supply chain game model involving both parties is established. The pricing strategies and selection between two cooperation models—the sales profit sharing (SP) model and the wholesale price subsidy (WP) model—are discussed. The findings indicate that (1) when the CER investment constraint is low, the WP model leads to higher levels of CER investment. Conversely, when the constraint is high, both models only meet the minimum required CER investment. (2) The existing community under the WP model can obtain more profits, while the profits of the electricity enterprise are influenced by both the CER investment constraint and the profit-sharing ratio. (3) With a high CER investment cost and low consumer low-carbon preference, the SP model is more appropriate; under a low CER investment cost and high consumer low-carbon preference, the WP model is preferable.

Date: 2025
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DOI: 10.1080/1540496X.2025.2496370

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