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The Impact of Different Government Subsidy Methods on Low-Carbon Emission Reduction Strategies in Dual-Channel Supply Chain

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  • Cheng Che
  • Yi Chen
  • Xiaoguang Zhang
  • Zhihong Zhang
  • Wei Zhang

Abstract

With the implementation of national carbon emission reduction policies and the development of online shopping, manufacturers are making low-carbon efforts and selling products through dual channels. This paper constructs a dual-channel supply chain decision-making model composed of low-carbon emission reduction manufacturers and retailers and studies the optimal decision-making problem of the supply chain under subsidies by the government based on emission reduction R&D and per unit product emission reduction. The research results show the following: (1) when the government subsidizes emission reduction R&D, the emission reduction will have an impact on retailers’ optimal prices, manufacturers’ optimal wholesale prices, and optimal direct sales channel sales prices. The profit of the manufacturer increases with the increase in carbon emissions, and the profit of the manufacturer increases to a certain level and then appears to decline. (2) When the government adopts a subsidy method based on the emission reduction per unit product, the manufacturer’s wholesale price and the selling price of direct sales channels, as well as the retailer’s own optimal price, will increase with the increase in emission reductions. Retailers’ profits will increase linearly with the increase in carbon emissions. Manufacturers’ profits will first increase in a straight line and then increase in a curve.

Suggested Citation

  • Cheng Che & Yi Chen & Xiaoguang Zhang & Zhihong Zhang & Wei Zhang, 2021. "The Impact of Different Government Subsidy Methods on Low-Carbon Emission Reduction Strategies in Dual-Channel Supply Chain," Complexity, Hindawi, vol. 2021, pages 1-9, January.
  • Handle: RePEc:hin:complx:6668243
    DOI: 10.1155/2021/6668243
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    Cited by:

    1. Weiqi Pei & Weiran Pei, 2022. "Empirical Study on the Impact of Government Environmental Subsidies on Environmental Performance of Heavily Polluting Enterprises Based on the Regulating Effect of Internal Control," IJERPH, MDPI, vol. 20(1), pages 1-17, December.
    2. Chen, Junlong & Sun, Chaoqun & Shi, Jiayan & Liu, Jiali, 2022. "Technology R&D and sharing in carbon emission reduction in a duopoly," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    3. Xiaowan Yang & Xiaoyu Guo & Yanan Wang, 2023. "Characteristics of Carbon Emission Transfer under Carbon Neutrality and Carbon Peaking Background and the Impact of Environmental Policies and Regulations on It," Sustainability, MDPI, vol. 15(9), pages 1-20, May.
    4. Cheng Che & Xin Geng & Huixian Zheng & Yi Chen & Xiaoguang Zhang, 2022. "The Pricing Mechanism Analysis of China’s Natural Gas Supply Chain under the “Dual Carbon” Target Based on the Perspective of Game Theory," Sustainability, MDPI, vol. 14(15), pages 1-21, August.

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