A Comparative Analysis of Emission Reduction through Technology- Innovation of Manufacturers under Low Carbon Demand Constraints

Abstract

Abstract: In view of a secondary supply chain system composed of one manufacturer and one retailer, a judgment model is built to analyze how the prevailing manufacturer can carry out emission reduction through technology innovation under low carbon demand constraints. By introducing the parameter of technical innovation level, Stackelberg Game theory is used to analyze the impacts of the manufacturer decisions with or without technology innovation on the prices and profits of the manufacturer and the retailer. The results show that the prices and profits of the manufacturer and the retailer are higher with the manufacturer's technology innovation only than without technology innovation under certain conditions. The joint innovation of the manufacturer and the retailer is not always the dominant strategy, the effect of which is constrained by the distribution costs of the retailer.

Key words: carbon emissions, emission reduction, low carbon, technology innovation, supply chain management

Liang Xi. A Comparative Analysis of Emission Reduction through Technology- Innovation of Manufacturers under Low Carbon Demand Constraints[J]. Industrial Engineering Journal , 2014, 17(1): 112-119.

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