Abstract:In this paper, we study the financing decision for an emission-dependent supply chain with one supplier and one manufacturer, both of which are financially constrained and in need of short-term financing for emission abatement. Three kinds of financing strategies are considered: (1) bank financing separately (BFS), (2) the manufacturer obtains partial loans from the bank, and borrows from the supplier (MPB), (3) the supplier obtains partial loans from the bank, and borrows from the manufacturer (SPB). The BFS … Show more
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