Dynamic game study of multi-channel supply chain under cap-and-trade regulation

Ma, Junhai; Tian, Yi; Xu, Tiantong; Koivumäki, Timo; Xu, Yueqiang

doi:10.1016/j.chaos.2022.112131

Cited by 14 publications

(8 citation statements)

References 30 publications

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“…Xu et al (2022) investigated manufacturers' production and delivery time decisions based on GCAA Carbon allowance approach and BCAA allocation rules, as well as the government's regional cap setting under cap-andtrade regulation. Ma et al (2022) studied the effects of three CAAMs, without cap-and-trade regulation, GCAA and BCAA, on supply chain profits, carbon emissions and social welfare based on a multichannel supply chain consisting of manufacturers, e-tailers and traditional retailers under cap-and-trade. Although the studies on the two CAAMs of GCAA and BCAA are related to our research, they assumed that firms have sufficient capital for production.…”

Section: Carbon Trading Mechanism In the Supply Chainmentioning

confidence: 99%

Carbon allowance approach for capital-constrained supply chain under carbon emission allowance repurchase strategy

Wang

Lin

Cheng

et al. 2023

IMDS

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PurposeThe purpose of this study is to investigate which of the two carbon allowance allocation methods (CAAMs), i.e. grandfathered system carbon allowance allocation (GCAA) and baseline system carbon allowance allocation (BCAA), is more beneficial to capital-constrained supply chains under the carbon emission allowance repurchase strategy (CEARS).Design/methodology/approachAdopting CEARS to ease the capital-constrained supply chains, this study develops two-period game models with manufacturers as leaders and retailers as followers from the perspective of profit and social welfare maximization under two CAAMs (GCAA and BCAA), where the first period produces normal products, and the second period produces low-carbon products.FindingsFirst, higher carbon-saving can better use CEARS and achieve a higher supply chain profit under the two CAAMs. However, the higher the end-of-period carbon price is, the lower the social welfare is. Second, when carbon-saving is small, GCAA achieves both economic and environmental benefits; BCAA reduces carbon emissions at the expense of economic benefit. Third, the supply chain members gain higher profits and social welfare under GCAA, so the government and supply chain members are more inclined to choose GCAA.Originality/valueBy analyzing the profits and total carbon emissions of capital-constrained supply chains under GCAA and BCAA, this study provides theoretical references for retailers and capital-constrained manufacturers. In addition, by comparing the difference in social welfare under GCAA and BCAA, it provides a basis for the government to choose a reasonable CAAM.

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Section: Carbon Trading Mechanism In the Supply Chainmentioning

confidence: 99%

Carbon allowance approach for capital-constrained supply chain under carbon emission allowance repurchase strategy

Wang

Lin

Cheng

et al. 2023

IMDS

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“…Tian et al [24] showed that when consumers' channel preference is too strong, it will damage the profits of supply chain members, no matter how hard enterprises try to improve sales efforts. Ma et al [25] studied dynamic complexity of a multi-channel supply chain considering cap-and-trade regulation. Li et al [26] incorporated fairness concern into a dynamic model of the closedloop supply chain.…”

Section: Applications Of Nonlinear Dynamical System Theory To Supply ...mentioning

confidence: 99%

“…The necessary and sufficient conditions for the local asymptotic stability of system ( 14) can be derived according to the July criterion. [24][25][26] The following conditions for the system stability at E 4 should be met: 1 + Tr (J (E 4 )) + Det (J (E 4 )) > 0, 1 − Tr (J (E 4 )) + Det (J (E 4 )) > 0, and 1 − Det (J (E 4 )) > 0. Otherwise, the system will lose stability and become disordered.…”

Section: Dynamic Modelmentioning

confidence: 99%

“…Then, the characteristic equation of J (E) can be expressed as λ 2 − Tr (J (E)) λ +Det (J (E)) = 0, where Tr (J (E)) is the trace of J (E), and Det (J (E)) is the determinant of J (E). According to the July criterion, [24][25][26] the necessary and sufficient conditions for the local stability of the system ( 21) can be given by 1 + Tr (J (E)) + Det (J (E)) > 0, 1 − Tr (J (E)) + Det (J (E)) > 0, and 1 − Det (J (E)) > 0. Otherwise, the system will lose stability and become disordered.…”

Section: Dynamic Modelmentioning

confidence: 99%

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Dynamic decision and its complex dynamics analysis of low-carbon supply chain considering risk-aversion under carbon tax policy

et al. 2023

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This study establishes a low-carbon supply chain game model under the centralized decision situation and the decentralized decision situation considering the manufacturer risk-aversion behavior, and discusses the impact of the manufacturer risk-aversion behavior on the optimal decisions, profits, coordination and complex dynamics of the supply chain. We find that compared with the risk-neutral decentralized decision, the increase of manufacturer’s risk tolerance attitude can narrow the gap between the supply chain profit and the centralized decision, but it will further reduce the carbon emission reduction level. The increase of risk tolerance of the manufacturer and carbon tax will narrow the stable region of the system. Under this situation, the manufacturer should carefully adjust parameters to prevent the system from losing stability, especially the adjustment parameters for carbon emission reduction level. When the system is in a chaotic state, the increase of carbon tax rate makes the system show more complex dynamic characteristics. Under chaotic state, it is difficult for the manufacturer to make correct price decision and carbon emission reduction strategy for the next period, which damages its profit, but increases the profits of the retailer and the supply chain. Finally, the carbon emission reduction cost-sharing contract is proposed to improve the carbon emission reduction level and the supply chain efficiency, achieving Pareto improvement. The stability region of the system is larger than that in the centralized decision situation, but the increase of the cost sharing coefficient will reduce the stability of the system in the decentralized decision-making situation.

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“…It explores the results of external and internal disturbances that may cause changes in system equilibrium. Decision-making may undergo multiple adjustments, gradually approaching equilibrium and eventually reaching a stable state [32]. In this paper, we focus on its application in supply chain systems.…”

Section: Complexity Analysis Of the Supply Chain Gamementioning

confidence: 99%

Dynamic Complexity Analysis of R&D Levels in the Automotive Industry under the Dual-Credit Policy

He,

Feng,

2023

Sustainability

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The dual-credit policy, as an important emerging policy in the Chinese automotive industry intended to achieve energy savings, emissions reductions, and promote the development of new energy vehicles (NEVs), has attracted considerable attention from scholars. This study investigates how this policy affects the research and development (R&D) levels of both component suppliers and vehicle manufacturers in the automotive supply chain. Assuming the bounded rationality of the participants, we construct a complex dynamic evolutionary model under Stackelberg games to explore the impact of the policy on the dynamic game behavior and equilibrium stability of R&D levels. Furthermore, we examine the influences of various parameters on the R&D level complex system. The findings reveal that the disparity in the proportion of NEVs in the policy should not be too large; otherwise, bifurcation and chaos may occur in the R&D level game system. Moreover, higher supplier research efficiency contributes to the stability of R&D levels, while the higher credit trading price is not suitable for stable R&D levels. This paper theoretically reveals the dynamic impact of the dual-credit policy on the R&D levels in the automotive supply chain, bridging the gap between previous studies assuming decision-makers as fully rational and the reality of bounded rationality. It also provides managerial recommendations for the implementation details of this policy.

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Dynamic game study of multi-channel supply chain under cap-and-trade regulation

Cited by 14 publications

References 30 publications

Carbon allowance approach for capital-constrained supply chain under carbon emission allowance repurchase strategy

Carbon allowance approach for capital-constrained supply chain under carbon emission allowance repurchase strategy

Dynamic decision and its complex dynamics analysis of low-carbon supply chain considering risk-aversion under carbon tax policy

Dynamic Complexity Analysis of R&D Levels in the Automotive Industry under the Dual-Credit Policy

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