Pricing Decisions in Dual-channel Supply Chains Considering Risk Aversion under Carbon Cap-and-Trade

Considering the carbon cap-and-trade mechanism and the risk preferences of supply chain members, a pricing decision of a dual-channel supply chain led by manufacturers with online sales channels is studied. Under carbon cap-and-trade, pricing decision models are developed under the conditions of both manufacturers and retailers being risk-neutral, manufacturers being risk-averse while retailers being risk-neutral, manufacturers being risk-neutral while retailers being risk-averse, and both being risk-averse. The impact of risk aversion coefficients of supply chain members on the carbon emission reduction ratio, wholesale prices, online and offline prices is explored. Results show that with the increase of manufacturer risk aversion, the carbon emission ratio, wholesale prices of products, online and offline prices gradually decrease. In contrast, with the increase of retailer risk aversion, the carbon emission ratio, wholesale prices of products and online prices gradually increase, while offline prices gradually decrease. The behavior of manufacturer risk aversion is not conducive to carbon reduction of products, with the highest carbon reduction ratio observed when manufacturers are risk-neutral and retailers are risk-averse. Furthermore, when the risk aversion coefficients of manufacturers and retailers fall within a certain range, the carbon emission reduction ratio under the condition of both manufacturers and retailers being risk-averse is greater than that under the condition of both being risk-neutral.