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Cooperative decisions of competitive supply chains considering carbon trading mechanism
[Competing manufacturers in a retail supply chain: on contractual form and coordination]

Author

Listed:
  • Hui Li
  • Rou Li
  • Meng Shang
  • Yu Liu
  • Dandan Su

Abstract

Carbon emissions trading policy is a market mechanism which promotes global greenhouse gas emissions reduction and reduces global carbon dioxide emissions. The emissions reduction in the supply chain operation has become a hot issue in supply chain management. Thus, this paper studies the optimal cap setting and pricing in chain-to-chain system under carbon emissions trading mechanism. Based on the double decentralized scenario, the five different cooperation models are established by introducing the structural cooperation and the contractual cooperation (the wholesale price contract) of supply chains. The optimal solutions of these models are obtained through the Stackelberg game and Nash game. The results show that the bargaining power of the supply chains is changed by the asymmetric competition structure. Besides, the government should emphasize the influencing factors change of the cap in the process of setting carbon emissions cap.

Suggested Citation

  • Hui Li & Rou Li & Meng Shang & Yu Liu & Dandan Su, 2022. "Cooperative decisions of competitive supply chains considering carbon trading mechanism [Competing manufacturers in a retail supply chain: on contractual form and coordination]," International Journal of Low-Carbon Technologies, Oxford University Press, vol. 17, pages 571-589.
    • Handle: RePEc:oup:ijlctc:v:17:y:2022:i::p:571-89.
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    File URL: http://hdl.handle.net/10.1093/ijlct/ctab085
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    References listed on IDEAS

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    Cited by:

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    3. Feng, Huchen & Hu, Yu-Jie & Li, Chengjiang & Wang, Honglei, 2023. "Rolling horizon optimisation strategy and initial carbon allowance allocation model to reduce carbon emissions in the power industry: Case of China," Energy, Elsevier, vol. 277(C).

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