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Research on Emission Reduction Decisions in Supply Chains Considering Vertical Spillover Effects and Low-Carbon Preferences

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  • Zigan Lin

    (School of Traffic and Transportation Engineering, Changsha University of Science and Technology, Changsha 410114, China)

  • Pengfei Liu

    (School of Traffic and Transportation Engineering, Changsha University of Science and Technology, Changsha 410114, China)

Abstract

The growth in carbon emissions is increasingly exacerbating global warming. As the principal source of carbon emissions, companies can effectively enhance their emission reduction levels through the vertical spillover of emission reduction technologies to investigate the impact of vertical spillover rates, consumers’ low-carbon preference coefficients, emission reduction cost coefficients on optimal supply chain decisions, and profits in centralized and decentralized decision-making environments. Considering consumers’ preferences for low-carbon options, this paper constructs a Stackelberg game model under centralized and decentralized supply chain decision-making scenarios. It examines the effects of considering the vertical spillover effects of emission reduction versus not taking them into account. Using backward induction, this study optimizes the emission reduction levels of leading suppliers and manufacturers. The results indicate that an increase in consumers’ low-carbon preference levels and vertical spillover rate not only enhances the emission reduction levels of suppliers and manufacturers but also increases their profits. Conversely, an increase in emission reduction cost coefficients impedes emission reductions, with a more pronounced effect under vertical spillover conditions. In centralized decision-making, increases in vertical spillover rates, consumers’ low-carbon preferences, and decreases in emission reduction cost coefficients create a synergistic effect, resulting in greater increases in emission reduction levels and profits for suppliers and manufacturers compared to the sum of the effects of changes in individual coefficients. This finding provides new insights for governments in formulating relevant policies to promote corporate emission reductions.

Suggested Citation

  • Zigan Lin & Pengfei Liu, 2024. "Research on Emission Reduction Decisions in Supply Chains Considering Vertical Spillover Effects and Low-Carbon Preferences," Sustainability, MDPI, vol. 16(22), pages 1-26, November.
  • Handle: RePEc:gam:jsusta:v:16:y:2024:i:22:p:9754-:d:1516897
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    References listed on IDEAS

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