Pricing and Low-Carbon Investment Decisions in an Emission Dependent Supply Chain under a Carbon Labelling Scheme

Cheng, Yonghong; Sun, Hui; Jia, Fu; Koh, S.C. Lenny

doi:10.3390/su10041238

Cited by 11 publications

(14 citation statements)

References 41 publications

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“…Xia and He [31] concluded that consumers' low-carbon awareness was to enhance consumer utility and decrease the profits of supply chain firms without regulation. Cheng et al [32] studied how a carbon-labeling scheme could be integrated into operational decision-making for manufacturers and retailers. Reference [32] shows that a carbon-labeling scheme can significantly reduce the overall carbon emission supply chain and have an initially negative impact on the manufacturer and retailer's profits.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Cheng et al [32] studied how a carbon-labeling scheme could be integrated into operational decision-making for manufacturers and retailers. Reference [32] shows that a carbon-labeling scheme can significantly reduce the overall carbon emission supply chain and have an initially negative impact on the manufacturer and retailer's profits. Zhang et al [33] study the impact of consumer environmental awareness on order quantities and channel coordination within a one-manufacturer and one-retailer supply chain.…”

Section: Literature Reviewmentioning

confidence: 99%

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Carbon-Regulated EOQ Models with Consumers’ Low-Carbon Awareness

Tao

2019

Sustainability

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In the context of a low-carbon economy, firms must make positive responses in their operation management, including inventory management. Carbon-emission regulation policies have marked their influence on the optimization of low-carbon inventory systems. In addition to regulation policies, consumers’ low-carbon awareness can also influence inventory systems by affecting demand. This study investigates the influence of regulation policies and consumers’ low-carbon awareness on optimal order size, emission levels, and total costs. Two widely used regulation policies, i.e., the carbon-tax mechanism and cap-and-trade mechanism, are incorporated into the classical Economic Order Quantity (EOQ) model. Analytical conclusions were obtained by optimization methods to indicate the influences of regulation policies and consumers’ low-carbon awareness. Our study implies that inventory systems under different regulation policies perform similarly except with regard to total cost. Numerical examples provide more support for these analytical conclusions. Some managerial insights can be derived from the analytical conclusions and numerical examples.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Carbon-Regulated EOQ Models with Consumers’ Low-Carbon Awareness

Tao

2019

Sustainability

View full text Add to dashboard Cite

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“…Incorporating the competition between the two rival manufacturers in the demand function, Chen et al [33] studied optimal pricing and carbon reduction policies. By considering consumer environmental awareness, Cheng et al [9] built a game theoretic model of a supply chain with one manufacturer and one retailer to investigate the manufacturer's and retailer's pricing and investment decisions for products with different initial carbon footprints.…”

Section: Literature Reviewmentioning

confidence: 99%

“…As effective choices to curb carbon emissions and mitigate greenhouse effects, carbon cap-and-trade [5,6], carbon tax [7,8], and carbon labelling [9] have all been adopted by both governments and firms. In particular, the cap-and-trade regulation has proven to be an effective way to achieve emission reduction goals [10].…”

Section: Introductionmentioning

confidence: 99%

Optimal Decisions for Carbon Emission Reduction through Technological Innovation in a Hybrid-Channel Supply Chain with Consumers’ Channel Preferences

Xin

Zhou

Zhu

et al. 2019

Discrete Dynamics in Nature and Society

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This paper integrates carbon emission reduction via technological innovation with consumer channel preferences in both single- and dual-channel supply chains selling low-carbon products. Linear demand functions which simultaneously reflect the consumers’ channel preferences and low-carbon sensitivity are developed by considering the consumers’ segmentation. On this basis, we present two Stackelberg game models: one for each of the single- and dual-channel supply chains. In the first, the manufacturer sells low-carbon products through a traditional retailer who has a physical store, while in the second the manufacturer opens an online direct channel to compete with the traditional retailer. For the two models developed, the optimal pricing decisions, carbon emission reduction level, and profits are derived and discussed. Numerical examples are given to verify the effectiveness and practicality of the proposed models and solutions. The results show that supply chain members’ profits are affected by system parameters such as the carbon price, consumers’ low-carbon sensitivity, channel preference, etc. Furthermore, although the aforementioned parameters stimulate the manufacturer to reduce carbon emission, this does not always benefit the retailer. Comparison of the two models indicates that dual-channel selling is only the better choice for both the manufacturer and the retailer under certain conditions.

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“…e idea of carbon label is used to identify the sustainability level of a product. For instance, Walmart has requested its 100,000 suppliers to complete the carbon footprint verification and labeled their products with colors according to the carbon footprints [8].…”

Section: Introductionmentioning

confidence: 99%

Integrated Inventory-Transportation Scheduling with Sustainability-Dependent Demand under Carbon Emission Policies

Tang

Liu

Wang

et al. 2020

Discrete Dynamics in Nature and Society

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Carbon policies and consumer environmental consciousness are effective motivators that drive enterprises to adopt sustainability technology. To provide enterprises insights into sustainable investment and inventory-transportation decision-making and governments insights into policy-making, this study investigates integrated inventory-transportation scheduling considering consumer environmental consciousness and sustainability technology under carbon cap, tax, and cap-and-trade policies. We first examined sustainability that extends the economic order quantity (EOQ) models, simultaneously taking into account the comprehensive emission model, consumer environmental consciousness, and carbon policies. We then optimized the sustainability level and EOQ using the simulation method. Furthermore, we performed a regression analysis on the carbon policy effects on sustainability level, profit, and emission. Moreover, using the regression models, we estimated and discussed the optimal policy parameters from the perspective of social welfare maximization. The results indicate that the carbon cap-and-trade policy is superior to carbon cap and tax policies. Under carbon cap and tax policies, the tougher the carbon policy, the higher the sustainability level and the lower the profit and carbon emission. Meanwhile, under the carbon cap-and-trade policy, the carbon trading price is the decisive factor that affects the sustainability level, enterprises’ profit, and carbon emission; the carbon cap has a positive regulatory effect on profit.

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Pricing and Low-Carbon Investment Decisions in an Emission Dependent Supply Chain under a Carbon Labelling Scheme

Cited by 11 publications

References 41 publications

Carbon-Regulated EOQ Models with Consumers’ Low-Carbon Awareness

Carbon-Regulated EOQ Models with Consumers’ Low-Carbon Awareness

Optimal Decisions for Carbon Emission Reduction through Technological Innovation in a Hybrid-Channel Supply Chain with Consumers’ Channel Preferences

Integrated Inventory-Transportation Scheduling with Sustainability-Dependent Demand under Carbon Emission Policies

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