Study on Low-Carbon Supply Chain Coordination Considering Reference Emission Reduction Effect

Fanjun Yao (), Hongwei Gao, Hui Jiang () and Yunxu Zhou ()
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Fanjun Yao: School of Business, Qingdao University, Qingdao 266071, P. R. China
Hongwei Gao: School of Mathematics and Statistics, Qingdao University, Qingdao 266071, P. R. China
Hui Jiang: School of Business, Qingdao University, Qingdao 266071, P. R. China
Yunxu Zhou: School of Business, Qingdao University, Qingdao 266071, P. R. China

Asia-Pacific Journal of Operational Research (APJOR), 2021, vol. 38, issue 05, 1-21

Abstract: This paper documents the first attempt to apply the differential game theory for investigating some properties of a low-carbon supply chain coordination by employing the cost-sharing mechanism. The manufacturer is the brand owner and the corresponding low-carbon goodwill is increased with respect to the reference emission reduction effect and consumption promotion. Three dynamic games are well-studied by considering the multiple effects of price and non-price factors on the market. It can be observed that the manufacturer always prefers to employ the coordination mechanism. When the manufacturer opts for a cost-sharing program, the manufacturer and retailer under Model-D are always economically better off, and therefore a cost-sharing program is always profit-Pareto-improving.

Keywords: Differential game; reference emission reduction effect; low-carbon goodwill; low-carbon supply chain; cost-sharing contract (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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DOI: 10.1142/S0217595920400229

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