JAFMS
Journal of Accounting, Finance & Management Strategy


 

 

 

 

 


Volume 17, Number 2, December 2022


The Optimal Decision of Carbonc Emission Reduction Investment Cooperation in Dual-channel Supply Chain

Abstract

This paper studies the decision-making problem of cooperation between the retailer and manufacturer in a dual-channel supply chain to reduce carbon emissions under the constraint of the carbon tax. By establishing a game model, the optimal decisions can be obtained in four cases: non-cooperative emission reduction, decentralized decision-making for cooperative emission reduction, and centralized decision-making for cooperative emission reduction with different selling prices and the same selling price. According to the results of theoretical research and numerical analysis, under decentralized decision-making, the cooperative emission reduction strategy is better than the non-cooperative emission reduction strategy; Under centralized decision-making, the strategy with the same selling price for retail channel and online channel is better than the strategy with different selling prices. The best decision-making choice for supply chain optimization is that the manufacturer and retailer cooperate to reduce emissions with the same price under centralized decision-making. Carbon emission reduction education for consumers will increase consumers' sensitivity to carbon emission reduction, make consumers gradually prefer high emission reduction products, and prefer to buy carbon emission reduction products at a relatively high price. These will provide incentives for manufacturers and retailers to cooperate in the reduction of carbon emissions, then benefit enterprises' development and environmental sustainability.


Keywords: Carbon Emission Reduction, Dual-Channel Supply Chain, Carbon Tax Constraint, Investment Cooperation

JEL Classification: C71, C60, M21