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Research on Decision-Making and Coordination of Closed-Loop Supply Chain Under Green and Low-Carbon Perspective

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  • Jianhua Wang

    (School of Business, Jiangnan University, Wuxi 214126, China)

  • Xinyan Cai

    (School of Business, Jiangnan University, Wuxi 214126, China)

Abstract

This study explores low-carbon tech investment decisions in a closed-loop supply chain and their impact on supply chain optimization and relationships, using non-cooperative and cooperative game theories. This study examines the behavior patterns and potential gains of suppliers and manufacturers in independent vs. cooperative circumstances using model simulations. This study reveals that the following: (1) Optimal pricing, technology investment, profit, and cost-sharing ratios for low-carbon technologies can be determined under certain conditions to maximize stakeholder profits. (2) Suppliers and manufacturers can mutually benefit in supplier-driven markets. (3) Manufacturers have greater investment opportunities in low-carbon technology when suppliers have market power. (4) Provider utility decreases as consumer preference for low-carbon products rises. (5) The dominant market structure for low-carbon products evolves with the market stage. These findings provide strategic guidance for green supply chain management. The research presented in this paper offers a theoretical foundation and strategic direction for low-carbon technology investment in CLSCs.

Suggested Citation

  • Jianhua Wang & Xinyan Cai, 2024. "Research on Decision-Making and Coordination of Closed-Loop Supply Chain Under Green and Low-Carbon Perspective," Sustainability, MDPI, vol. 16(23), pages 1-22, December.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:23:p:10591-:d:1535669
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    References listed on IDEAS

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