Industrial Engineering Journal ›› 2013, Vol. 16 ›› Issue (4): 1-6.

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A Game Model for the Government's and Enterprises' Behavior Based on Low-Carbonization Supply Chain

  

  1. 1.College of Management & Economics, Tianjin University, Tianjin 300072, China;2.School of Management Science and Engineering, Shijiazhuang University of Econommics, Shijiazhuang 050031, China
  • Online:2013-08-31 Published:2013-11-22

Abstract: Based on low-carbonization supply chain, the effects of levying carbon tax on enterprises'emission reduction behavior are analyzed and a game model between them is developed. The converse method is used to solve this problem. By this method, first, the government initiates the carbon tax rate, then, the manufacturers make the decision on the optimal rate of emission reduction; and third the manufacturers set the prices of products. It shows that levying carbon tax plays a positive role in promoting the enterprises to reduce the carbon emission. With the carbon rate tax increasing year by year, the emission reduction are increased drastically (from 4.02% to 20.21%), while the prices are changed slowly. The low-carbon preference of consumers has significant effect on the product prices, but not on the emission reduction. A numerical case is presented to test the effects of the variation for different factors. The results provide technical guidance and data support for the government and manufacturers to make strategy decision.

Key words: low-carbon economy, carbon tax, carbon emission reduction, game model