Coordinate the Supply Chain to Reduce Carbon Emissions

Jing Gao () and Juliang Zhang ()
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Jing Gao: Beijing Jiaotong University
Juliang Zhang: Beijing Jiaotong University

A chapter in LISS 2014, 2015, pp 225-231 from Springer

Abstract: Abstract In recent years, low-carbon economy received extensive attention of the government and enterprises. To achieve a low-carbon economy, enterprises must invest in upgrading existing production processes to reduce carbon emissions per unit of product. Based on this idea, we study how to coordinate the supply chain to reduce carbon emissions. Specifically, we consider a manufacturer and a retailer who plan to invest funds to transform existing production processes to reduce carbon emissions. Investment decision making in the both centralized system and decentralized system is analyzed. We apply Nash Bargaining Game to design supply chain cooperation mechanisms to achieve supply chain coordination and improve the economic benefits as well as the environmental benefits.

Keywords: Low-carbon; Supply chain coordination; Profit distribution; Nash bargaining game (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-662-43871-8_35

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DOI: 10.1007/978-3-662-43871-8_35

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