Low-Carbon Supply Chain Decisions Considering Carbon Emissions Right Pledge Financing in Different Power Structures

Abstract

While carbon emissions reduction brings about environmental benefits, it can also create financial pressure on many manufacturing enterprises. Many manufacturing enterprises have begun to pledge their own carbon emissions right quotas for financing and the funds from this financing are being used to implement energy savings and emissions reduction strategies. To investigate the impact of carbon emissions right pledge financing on supply chains, this study constructed a two-echelon low-carbon supply chain, which consisted of a capital-constrained manufacturer and a retailer. The manufacturer invested in carbon reduction technologies using carbon emissions right pledge financing. On this basis, we analyzed the carbon emissions reduction levels and profits of the supply chain in three different power structures. The results showed that the manufacturer pledged the most carbon emissions rights to finance emissions reduction in the Nash model and, in this case, the carbon emissions reduction levels and profits of the supply chain were always the highest. In the manufacturer-led Stackelberg model, the overall economic and environmental benefits of the supply chain were the lowest. In addition, we analyzed the sensitivity of the important parameters of the model and revealed some management implications.

Learning of Supply Chain Cost-Revenue Sharing Contract in the Form of Trade-off Mechanism in Pollution Control Problem

“…However, when we compare the role of members in both the previous investigated papers and Section 2, either the manufacture is acting as the bellwether or the retailer is dominating, this configuration is recognized as power structure (Li et al, 2022). Noticeably, there is no Stackelberg model used in the trade-off mechanism and two players choose their strategies simultaneously.…”

Manufacturer’s Green Financing and CER Decisions under the Carbon Tax Policy and Capital Constraints

“…Wang et al [40] combined the order fnancing model in green fnance and found that a carbon tax and green fnance can promote the green transformation of corporate clean technologies. Li et al [41] constructed a two-echelon lowcarbon supply chain model wherein the manufacturer is capital-constrained to use carbon pledge fnancing and analyze the manufacturer's CER decisions and supply chain members' profts under diferent power structures. Furthermore, some scholars have designed contracts to coordinate cash-constrained supply chain members.…”