IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v15y2018i7p1351-d154816.html
   My bibliography  Save this article

Upstream-Downstream Joint Carbon Reduction Strategies Based on Low-Carbon Promotion

Author

Listed:
  • Xiqiang Xia

    (Business School, Zhengzhou University, Zhengzhou 450001, China)

  • Junhu Ruan

    (Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hung Hom, Hong Kong, China)

  • Zhiru Juan

    (School of Economics and Management, Huaiyin Normal University, Huaian 223300, China)

  • Yan Shi

    (General Education Center, Tokai University, Kumamoto 862-8652, Japan)

  • Xuping Wang

    (Institute of Systems Engineering, Dalian University of Technology, Dalian 116024, China)

  • Felix T. S. Chan

    (Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hung Hom, Hong Kong, China)

Abstract

A differential game model is established to analyze the impact of emissions reduction efforts and low-carbon product promotion on the reduction strategies of low-carbon product manufacturers (subsequently referred to as manufacturers) and the retailers of such products in a dynamic environment. Based on this model, changes in emissions reduction efforts and promotional efforts are comparatively analyzed under three scenarios (retailers bearing the promotional cost, manufacturers bearing the promotional cost, and centralized decision-making). The results are as follows: (1) the trajectory of carbon emissions reduction per product unit is the highest when the supply chain is under centralized decision-making, followed by when manufacturers bear the promotional cost, and lastly when retailers bear the cost; (2) when manufacturers bear the promotional cost, the market demand, emissions reduction effort, and promotional effort are higher, although the unit retail price is higher than when retailers bear the promotional cost; and (3) under centralized decision-making, the unit retail price is the lowest; however, sales volume, the emissions reduction effort, and the promotional effort are all higher than those in the other scenarios.

Suggested Citation

  • Xiqiang Xia & Junhu Ruan & Zhiru Juan & Yan Shi & Xuping Wang & Felix T. S. Chan, 2018. "Upstream-Downstream Joint Carbon Reduction Strategies Based on Low-Carbon Promotion," IJERPH, MDPI, vol. 15(7), pages 1-16, June.
    • Handle: RePEc:gam:jijerp:v:15:y:2018:i:7:p:1351-:d:154816
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/15/7/1351/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/15/7/1351/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shao, Lulu & Yang, Jun & Zhang, Min, 2017. "Subsidy scheme or price discount scheme? Mass adoption of electric vehicles under different market structures," European Journal of Operational Research, Elsevier, vol. 262(3), pages 1181-1195.
    2. Liu, Zugang (Leo) & Anderson, Trisha D. & Cruz, Jose M., 2012. "Consumer environmental awareness and competition in two-stage supply chains," European Journal of Operational Research, Elsevier, vol. 218(3), pages 602-613.
    3. Wei, Yi-Ming & Liu, Lan-Cui & Fan, Ying & Wu, Gang, 2007. "The impact of lifestyle on energy use and CO2 emission: An empirical analysis of China's residents," Energy Policy, Elsevier, vol. 35(1), pages 247-257, January.
    4. Danqin Yang & Tiaojun Xiao, 2017. "Coordination of a supply chain with loss-averse consumers in service quality," International Journal of Production Research, Taylor & Francis Journals, vol. 55(12), pages 3411-3430, June.
    5. Bai, Qingguo & Chen, Mingyuan & Xu, Lei, 2017. "Revenue and promotional cost-sharing contract versus two-part tariff contract in coordinating sustainable supply chain systems with deteriorating items," International Journal of Production Economics, Elsevier, vol. 187(C), pages 85-101.
    6. Fei, Li & Dong, Suocheng & Xue, Li & Liang, Quanxi & Yang, Wangzhou, 2011. "Energy consumption-economic growth relationship and carbon dioxide emissions in China," Energy Policy, Elsevier, vol. 39(2), pages 568-574, February.
    7. Kim, Kilsun & Chhajed, Dilip, 2000. "Commonality in product design: Cost saving, valuation change and cannibalization," European Journal of Operational Research, Elsevier, vol. 125(3), pages 602-621, September.
    8. Xie, Jinxing & Wei, Jerry C., 2009. "Coordinating advertising and pricing in a manufacturer-retailer channel," European Journal of Operational Research, Elsevier, vol. 197(2), pages 785-791, September.
    9. Shaofu Du & Jiaang Zhu & Huifang Jiao & Wuyi Ye, 2015. "Game-theoretical analysis for supply chain with consumer preference to low carbon," International Journal of Production Research, Taylor & Francis Journals, vol. 53(12), pages 3753-3768, June.
    10. Ji, Jingna & Zhang, Zhiyong & Yang, Lei, 2017. "Comparisons of initial carbon allowance allocation rules in an O2O retail supply chain with the cap-and-trade regulation," International Journal of Production Economics, Elsevier, vol. 187(C), pages 68-84.
    11. Guodong Yu & Fei Li & Yu Yang, 2017. "Robust supply chain networks design and ambiguous risk preferences," International Journal of Production Research, Taylor & Francis Journals, vol. 55(4), pages 1168-1182, February.
    12. Zhao, Rui & Zhou, Xiao & Han, Jiaojie & Liu, Chengliang, 2016. "For the sustainable performance of the carbon reduction labeling policies under an evolutionary game simulation," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 262-274.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Biao Li & Yong Geng & Xiqiang Xia & Dan Qiao, 2021. "The Impact of Government Subsidies on the Low-Carbon Supply Chain Based on Carbon Emission Reduction Level," IJERPH, MDPI, vol. 18(14), pages 1-19, July.
    2. Weihao Wang & Deqing Ma & Jinsong Hu, 2023. "Study of Carbon Reduction and Marketing Decisions with the Envisioning of a Favorable Event under Cap-and-Trade Regulation," IJERPH, MDPI, vol. 20(5), pages 1-27, March.
    3. Weihao Wang & Deqing Ma & Jinsong Hu, 2022. "Dynamic Carbon Reduction and Marketing Strategies with Consumers’ Environmental Awareness under Cap-and-Trade Regulation," Sustainability, MDPI, vol. 14(16), pages 1-31, August.
    4. Junjun Liu & Yong Geng & Biao Chen & Xiqiang Xia, 2021. "The Effect of a Supplier’s Eco-Design on the Economic Benefits of a Supply Chain and Associated Coordination," IJERPH, MDPI, vol. 18(24), pages 1-18, December.
    5. Stamatios K. Chrysikopoulos & Panos T. Chountalas & Dimitrios A. Georgakellos & Athanasios G. Lagodimos, 2024. "Decarbonization in the Oil and Gas Sector: The Role of Power Purchase Agreements and Renewable Energy Certificates," Sustainability, MDPI, vol. 16(15), pages 1-24, July.
    6. Guifang Liu & Jie Li & Liang Ren & Heli Lu & Jingcao Wang & Yaxing Zhang & Cheng Zhang & Chuanrong Zhang, 2022. "Identification of Socio-Economic Impacts as the Main Drivers of Carbon Stocks in China’s Tropical Rainforests: Implications for REDD+," IJERPH, MDPI, vol. 19(22), pages 1-20, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Xuefeng & Li, Zhe & Li, Guo, 2024. "Grandfather-based or benchmark-based: Strategy choice for carbon quota allocation methods in the carbon neutrality era," Renewable and Sustainable Energy Reviews, Elsevier, vol. 192(C).
    2. Xiaoyan Wang & Minggao Xue & Lu Xing, 2018. "Analysis of Carbon Emission Reduction in a Dual-Channel Supply Chain with Cap-And-Trade Regulation and Low-Carbon Preference," Sustainability, MDPI, vol. 10(3), pages 1-18, February.
    3. Shengzhong Zhang & Yingmin Yu & Qihong Zhu & Chun Martin Qiu & Aixuan Tian, 2020. "Green Innovation Mode under Carbon Tax and Innovation Subsidy: An Evolutionary Game Analysis for Portfolio Policies," Sustainability, MDPI, vol. 12(4), pages 1-22, February.
    4. Wang, Haijun & Li, Lingchunzi & Sun, Jiaxuan & Shen, Minghao, 2023. "Carbon emissions abatement with duopoly generators and eco-conscious consumers: Carbon tax vs carbon allowance," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 786-804.
    5. Wen, Wen & Zhou, P. & Zhang, Fuqiang, 2018. "Carbon emissions abatement: Emissions trading vs consumer awareness," Energy Economics, Elsevier, vol. 76(C), pages 34-47.
    6. Bowon Kim & Jeong Eun Sim, 2016. "Supply Chain Coordination and Consumer Awareness for Pollution Reduction," Sustainability, MDPI, vol. 8(4), pages 1-20, April.
    7. Wenxue Ran & Teng Xu, 2023. "Low-Carbon Supply Chain Coordination Based on Carbon Tax and Government Subsidy Policy," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    8. Yang, Lei & Tang, Ruihong, 2019. "Comparisons of sales modes for a fresh product supply chain with freshness-keeping effort," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 425-448.
    9. Hui Li & Chuanxu Wang & Meng Shang & Wei Ou, 2017. "Pricing, Carbon Emission Reduction, Low-Carbon Promotion and Returning Decision in a Closed-Loop Supply Chain under Vertical and Horizontal Cooperation," IJERPH, MDPI, vol. 14(11), pages 1-26, November.
    10. Hongbo Guo & Mengtong Lu & Lili Ding, 2022. "The Effect of Consumer Sentiment on Manufacturers’ Green Technology Innovation: A RDEU Evolutionary Game Model," Sustainability, MDPI, vol. 15(1), pages 1-18, December.
    11. Du, Shaofu & Wang, Lei & Hu, Li & Zhu, Yangguang, 2019. "Platform-led green advertising: Promote the best or promote by performance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 115-131.
    12. Liangjie Xia & Yongwan Bai & Sanjoy Ghose & Juanjuan Qin, 2022. "Differential game analysis of carbon emissions reduction and promotion in a sustainable supply chain considering social preferences," Annals of Operations Research, Springer, vol. 310(1), pages 257-292, March.
    13. Peng Liu & Ying Chen, 2022. "Differential Game Model of Shared Manufacturing Supply Chain Considering Low-Carbon Emission Reduction," Sustainability, MDPI, vol. 14(18), pages 1-24, September.
    14. Xiao Zhou & Xiancong Wu, 2023. "Decisions for a Retailer-Led Low-Carbon Supply Chain Considering Altruistic Preference under Carbon Quota Policy," Mathematics, MDPI, vol. 11(4), pages 1-23, February.
    15. Xiutian Shi & Xiaoli Zhang & Ciwei Dong & Subin Wen, 2018. "Economic Performance and Emission Reduction of Supply Chains in Different Power Structures: Perspective of Sustainable Investment," Energies, MDPI, vol. 11(4), pages 1-16, April.
    16. Nouri, Mina & Hosseini-Motlagh, Seyyed-Mahdi & Nematollahi, Mohammadreza & Sarker, Bhaba R., 2018. "Coordinating manufacturer's innovation and retailer's promotion and replenishment using a compensation-based wholesale price contract," International Journal of Production Economics, Elsevier, vol. 198(C), pages 11-24.
    17. Weihao Wang & Deqing Ma & Jinsong Hu, 2022. "Dynamic Carbon Reduction and Marketing Strategies with Consumers’ Environmental Awareness under Cap-and-Trade Regulation," Sustainability, MDPI, vol. 14(16), pages 1-31, August.
    18. Lei Yang & Meng Chen & Yiji Cai & Sang-Bing Tsai, 2018. "Manufacturer’s Decision as Consumers’ Low-Carbon Preference Grows," Sustainability, MDPI, vol. 10(4), pages 1-26, April.
    19. Shoufeng Ji & Dan Zhao & Xiaoshuai Peng, 2018. "Joint Decisions on Emission Reduction and Inventory Replenishment with Overconfidence and Low-Carbon Preference," Sustainability, MDPI, vol. 10(4), pages 1-21, April.
    20. Juanjuan Qin & Yuhui Zhao & Liangjie Xia, 2018. "Carbon Emission Reduction with Capital Constraint under Greening Financing and Cost Sharing Contract," IJERPH, MDPI, vol. 15(4), pages 1-32, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:15:y:2018:i:7:p:1351-:d:154816. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.