Green financing strategies in a low-carbon e-commerce supply chain under service quality regulation

Abstract

Green financing is an effective means to encourage small and medium-sized enterprises (SMEs) to improve environmental efficiency in their operations. This paper studies two financing strategies of a carbon-dependent manufacturer in an e-commerce supply chain, which are called bank credit and cost-sharing with third-party platform that provides a marketplace. The optimal carbon emission reduction (CER) level, selling price, and service level are investigated. It turns out that the participants’ profits and environmental benefit under two financing strategies are higher than those without financing. In addition, when the commission provided by the platform is low, the manufacturer is more inclined to bank credit, and when the commission is high, it is more sensible to share CER cost with the platform. The impact of government service supervision policies on corporate decision-making is further explored. The results prove that setting an appropriate service threshold and reward-penalty factor is not only conducive to incentivizing the platform to improve service level but also beneficial to the environment and overall social welfare. This paper provides cooperation strategies for manufacturers in green financing in the e-commerce supply chain and provides policy recommendations for the government to implement e-commerce service regulation and promote CER.

Dual-Channel Supply Chain Pricing Decisions for Low-Carbon Consumers: A Review

“…Roy et al [42] constructed an economic optimization model of a two-stage duopoly market composed of brand manufacturers and remanufacturers, and found and proved that there is a unique pure strategy Nash equilibrium in the price yield of both sides. Peng et al [43] introduced a third-party manufacturer and recovery function based on Pranab and studied the pricing strategy optimization of manufacturers' new and remanufactured products in this situation.…”

External financing, channel power structure and product green R&D decisions in supply chains

“…Tang and Yang (2020) investigated the impact of financing mechanisms (bank loans and early payment) and power structures on the operational decisions of a low-carbon supply chain that consisted of a capital-constrained manufacturer and a capital-abundant retailer. Peng et al . (2023) investigated the manufacturer's optimal carbon emission reduction decisions in an e-commerce supply chain under the bank credit and cost-sharing financing schemes.…”

“…Tang and Yang (2020) investigated the impact of financing mechanisms (bank loans and early payment) and power structures on the operational decisions of a low-carbon supply chain that consisted of a capital-constrained manufacturer and a capital-abundant retailer. Peng et al (2023) investigated the manufacturer's optimal carbon emission reduction decisions in an e-commerce supply chain under the bank credit and cost-sharing financing schemes. In a closed-loop supply chain comprising a supplier and a capital-constrained OEM, Zhang and Chen (2022) have compared the effects of three different financing strategies on the supplier's remanufacturing decisions.…”

Optimal Decisions in a Sea-Cargo Supply Chain with Two Competing Freight Forwarders Considering Altruistic Preference and Brand Investment

“…Here, the parameter k(>0) represents the potential market size. Without loss of generality, the price-sensitive coefficients are normalized to 1 [34][35][36][37][38]. The competition coefficient between the two freight Forwarders 1 and 2, µ, satisfies 0 < µ < 1 [39][40][41], where a larger value indicates higher competition intensity.…”

“…Taking the first-order partial derivatives of Equation ( 38) with respect to p 1 and t 1 , respectively, we can obtain the first-order conditions to maximize Equation (38):…”