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Carbon Emissions and Sustainable Supply Chains: A Stackelberg Game Analysis of Multinational Firm Relationships

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  • Bo Tian

    (School of Information Management and Engineering, Shanghai University of Finance and Economics, Shanghai 200090, China
    MoE Key Laboratory of Interdisciplinary Research of Computation and Economics, Shanghai University of Finance and Economics, Shanghai 200433, China
    These authors contributed equally to this work.)

  • Meiqi Liu

    (School of Information Management and Engineering, Shanghai University of Finance and Economics, Shanghai 200090, China
    These authors contributed equally to this work.)

  • Bin Pan

    (School of Information Management and Engineering, Shanghai University of Finance and Economics, Shanghai 200090, China)

  • Guanghui Yuan

    (School of Economics and Management, Shanghai University of Political Science and Law, Shanghai 201701, China)

  • Fei Xie

    (School of Finance, Shanghai University of Finance and Economics, Shanghai 200090, China
    Shanghai Financial Intelligent Engineering Technology Research Center, Shanghai University of Finance and Economics, Shanghai 200090, China)

Abstract

Against the backdrop of global climate change and sustainable development, carbon emissions within transnational closed-loop supply chains have become a critical area of research. This paper utilizes a Stackelberg game model to analyze the relationship between a single export manufacturer and an import retailer. The study investigates the optimal solutions of the supply chain model—wholesale price, retail price, sales volume, and profit—across three consumer preference scenarios: no obvious preference, pure green preference, and pure new preference. Furthermore, this paper examines the impact of carbon emissions per unit of product on supply chain decision-making under two scenarios: with and without carbon trading. Carbon trading, which significantly increases unit costs, exerts a profound influence on the strategic decisions of both manufacturers and retailers. In addition, this paper incorporates carbon tariffs and taxes into its analysis, providing a theoretical foundation for governments and policymakers to promote sustainable production and consumption practices. The validity of the model is confirmed through numerical simulations, which reveal that under pure green and pure new preference scenarios, original equipment manufacturers (OEMs) are more inclined to invest in emissions reduction to minimize tariff costs. In contrast, under no obvious preference scenarios, OEMs are more likely to adjust product portfolios to evade carbon tariffs. This research advances the understanding of low-carbon production strategies in transnational supply chains, offering both theoretical insights and practical guidance for balancing economic and environmental objectives.

Suggested Citation

  • Bo Tian & Meiqi Liu & Bin Pan & Guanghui Yuan & Fei Xie, 2024. "Carbon Emissions and Sustainable Supply Chains: A Stackelberg Game Analysis of Multinational Firm Relationships," Mathematics, MDPI, vol. 12(24), pages 1-23, December.
  • Handle: RePEc:gam:jmathe:v:12:y:2024:i:24:p:3983-:d:1546871
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