Decisions and Coordination of Dual-Channel Supply Chain considering Retailers’ Bidirectional Fairness Concerns under Carbon Tax Policy

Abstract

Climate change has caused huge negative impacts on the ecosystem. Carbon tax policy is an important regulatory means to reduce carbon emissions and mitigate climate change. Based on the carbon tax policy, this study discusses a dual-channel supply chain consisting of one manufacturer, one online retailer, and one offline retailer. Considering retailers’ bidirectional fairness concerns, the optimal carbon emission reduction strategy and the optimal pricing strategy of centralized and decentralized decision-making are discussed under consumers’ channel preference, respectively. On this basis, a coordination contract is proposed to realize the Pareto improvement of the dual-channel supply chain. We find that dual-channel retailers’ profits and prices are negatively correlated with the horizontal fairness concern coefficient and positively correlated with the vertical fairness concern coefficient. The profit of the manufacturer, the carbon emission reduction, and the bargaining power of consumers are all positively correlated with the horizontal fairness concern coefficient and negatively correlated with the vertical fairness concern coefficient. Maintaining an appropriate service level can maximize the profits of enterprises and positively affect the development of enterprises. Through the coordination contract, the supply chain can be promoted to form a win-win mode of complementary advantages.

Greening, Pricing and Marketing Coordination for a Complex Three-Level Supply Chain Under the Carbon Tax in China

“…As seen from Table 2, the research object of supply chain green technology innovation has been limited to a single firm, such as in [12], [20], [28], [29]; between upstream and downstream enterprises in the supply chain, including one supplier and one manufacturer, such as in [21], [24], 27]; or between one manufacturer and one retailer, such as in [18], 19], [22], [23], [25]. [26] also studied a two-level supply chain with two competing downstream retailers . This paper has built a more complete, more complex, and more practical three-level supply chain.…”

“…[12], [20], [26] also studied supply chain carbon emission reduction under the carbon tax mechanism. According to [12], the total carbon trading mechanism and carbon tax policy represent the future development direction of carbon emission reduction policies, which are more effective than are other carbon emission reduction policy mixes.…”

“…With the growth of the carbon tax, carbon emission costs promote continuous emission reduction, and the government also has an additional source of fiscal revenue. However, the limitations of the carbon tax were also analyzed in [20], [26]. The carbon tax only increases the cost of the supply chain; it is a punishment mechanism but lacks an incentive mechanism.…”

“…The same is true for this paper. For example, [18], [19], [22], [26] used the theory of supply chain contracts, which, in fact, is also a branch of game theory, and its modeling and solving process are almost the same.…”

“…An et al, under the hard constraints of carbon emissions in the supply chain, studied how to design a green credit financing model to reduce manufacturers' carbon emissions and improve supply chain performance [24]. In the context of carbon emission reduction policies, some researchers have studied different network structures of supply chains [19], [25], [26], differences in member voices [27], different network optimization problems [28], [29] and other perspectives. Many meaningful studies have been carried out on a single-level supply chain, that is, including a supplier and a manufacturer or a manufacturer and a logistics service provider.…”