A two-echelon sustainable supply chain coordination under cap-and-trade regulation

Xu, Jianteng; Chen, Yuyu; Bai, Qingguo

doi:10.1016/j.jclepro.2016.06.047

Cited by 205 publications

(109 citation statements)

References 37 publications

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“…The coordination mechanism can be used to coordinate the corporations in the decentralized supply chain to achieve performance improvement for the overall supply chain. Taking into account economic, environmental, or social goals, a variety of contracts have been proposed for guiding the cooperation in the supply chain [34,44,45]. Hong and Guo [8] compared the environmental performance resulting from the green-marketing cost-sharing contract and two-part tariff contract.…”

Section: Supply Chain Coordinationmentioning

confidence: 99%

Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation

2020

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Under the threat of global warming, joint emission reduction strategy has been widely adopted as an effective solution for the industry to guarantee environmental sustainability. In the practice of supply chain, environmental regulations and supply chain contracts are applied with the attempt to improve environmental performance. However, whether these measures are actually effective remains unanswered. In this paper, we study a supply chain with one manufacturer and one retailer adopting joint emission reduction strategy. We first investigate under what circumstance the environmental regulation can effectively result in higher emission reduction efforts. The result shows that when the cost coefficient satisfies certain conditions, the increase of penalty or subsidy can lead to more investment in emission reduction. In addition, if the environmental impact caused by the production process is extremely high, the enforcement of the regulation is ineffective. We also explore how the cost-revenue-sharing contract affects the emission reduction strategy and the coordination of the members in the supply chain. The results suggest that the incentive effect of environmental regulation is more effective when the supply chain coordination contract exists. Numerical experiments are also presented to verify our analytical conclusions.

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Section: Supply Chain Coordinationmentioning

confidence: 99%

Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation

2020

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“…Liu et al investigated the impacts among the supply chain players considering consumer environmental awareness and manufacturers' competition [6]. Xu et al proposed revenue-sharing and two-part tariff contracts to coordinate the sustainable supply chain [19]. Considering government policies, Gonzalez and Fumero demonstrated how frequently used environmental policies influence the social welfare [20].…”

Section: Literature Reviewmentioning

confidence: 99%

The Optimal Green Product Design with Cost Constraint and Sustainable Policies for the Manufacturer

Zhang

Zhou

2019

Mathematical Problems in Engineering

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In this paper, we study how the manufacturer balances the investment between the green product and the ordinary product as consumer environmental awareness (CEA) increases. e green product and ordinary product have a basic commonality traditional quality but difference between the premium environmental quality and premium traditional quality. With the cost constraint, we present manufacturer's optimal strategy: producing one product or two products and the optimal traditional quality of the ordinary product or the optimal environmental quality of the green product. en, we further study the effect of government subsidy and tax on manufacturer's strategies and analyze the effectiveness of the policies. Finally, we give some numerical examples and sensitivity analysis. e main findings are as follows: (1) manufacturer's cost constraint affects product's optimal quality but may not influence manufacturer's optimal product strategy: the manufacturer may not produce two products even through the budget is sufficient large; (2) the government policy could induce the manufacturer to invest green product but may be inefficient; the subsidy and tax policies are mutual exclusion; and either subsidy or tax could play a role in changing manufacturer's strategy. Some management insights are given.

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“…Xu et al [20] studied the impacts of cap-and-trade on the optimal decisions with a make-to-order setting, and finally proposed the contract to coordinate the sustainable supply chain. Xu et al [21] explored the impacts of cap-and-trade on the production and emission abatement decisions, and designed a contract to achieve Pareto improvement for the supply chain.…”

Section: Literature Reviewmentioning

confidence: 99%

Joint Pricing and Product Carbon Footprint Decisions and Coordination of Supply Chain with Cap-and-Trade Regulation

2018

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Abstract:The implementation of cap-and-trade regulation worldwide is bound to have some effects on supply chain decision-making. This paper investigates optimal pricing and product carbon footprint decisions of the supply chain consisting of a manufacturer and a retailer under cap-and-trade regulation by applying optimization and game theory. By comparing the optimal results between the centralized and decentralized decision-making models, we find that the optimal product carbon footprint and selling price not only depend on the carbon trading price and carbon cap allocated by the government, but also relate to the initial carbon footprint of the product and the decision-making methods in the supply chain. It is found that there is also a "double marginalization" in the decentralized situation, thus we coordinate the supply chain using a two-part tariff contract. Specifically, only the manufacturer adjusts dynamically the wholesale price and fixed fee within the coordinating contract according to different initial carbon footprint and the range of the carbon cap reduction by the government. Finally, we obtain several interesting conclusions from the numerical examples and provide managerial insights and policy implications from the analytical results.

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A two-echelon sustainable supply chain coordination under cap-and-trade regulation

Cited by 205 publications

References 37 publications

Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation

Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation

The Optimal Green Product Design with Cost Constraint and Sustainable Policies for the Manufacturer

Joint Pricing and Product Carbon Footprint Decisions and Coordination of Supply Chain with Cap-and-Trade Regulation

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