A Coordination Strategy of Low Carbon Supply Chain under Cap-and-trade Mechanism

doi:10.3969/j.issn.1007-7375.2021.03.008

Abstract

Abstract: In order to achieve the perfect coordination of the low-carbon supply chain, a two-level supply chain consisting of a manufacturer and a retailer is constructed under the carbon cap-and-trade mechanism. Using the method of game theory, the optimal decision under centralized and decentralized decision-making is obtained. Then, based on this, two coordination contracts are proposed. Finally, the influence of relevant parameters on the equalization result is analyzed through numerical simulation. The study finds that the revenue sharing-cost sharing contract cannot achieve the perfect coordination of the supply chain, but the wholesale price-cost sharing contract can. In addition, the government should strengthen environmental protection publicity and cultivate consumers' low-carbon awareness. At the same time, it should reasonably control carbon prices and balance the profits of supply chain members.

Key words: cap-and-trade, low-carbon supply chain, coordination

CLC Number:

F274

LIU Hao, FAN Yuqing, ZHANG Shiqing. A Coordination Strategy of Low Carbon Supply Chain under Cap-and-trade Mechanism[J]. Industrial Engineering Journal, 2021, 24(3): 60-67,82.

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