Equilibrium pricing mechanism of low-carbon supply chain considering carbon cap-and-trade policy

Zou, Hao; Qin, Jin; Zheng, Hong

doi:10.1016/j.jclepro.2023.137107

Cited by 9 publications

(4 citation statements)

References 55 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The imposition of carbon emission quota constraints can effectively regulate and limit production operations and energy consumption behaviors of enterprises, leading to adjustments in the production practices of high-carbon firms. This adjustment incurs increased production costs, ultimately diminishing the firms’ ability to negotiate product prices [ 21 ]. Based on Porter’s hypothesis, the implementation of effective carbon emission regulations can incentivize businesses to innovate in order to enhance production efficiency, thereby mitigating the financial burden associated with such regulations, known as the innovation compensation effect [ 17 ].…”

Section: Literature Review and Theoretical Hypothesesmentioning

confidence: 99%

Can carbon emissions trading policy promote product bargaining power increases for high-carbon enterprises? Evidence from China

Wang,

2024

PLoS ONE

View full text Add to dashboard Cite

Carbon emissions trading policies play a crucial role in facilitating the transition to high-end products within high-carbon enterprises. Nevertheless, current empirical analyses of the carbon emissions trading market exhibit a lack of precision and are susceptible to bias in their findings. Limited research has been conducted on the influence of product quality as a potential constraint on the impact of carbon trading on product bargaining power. This study presents a double-difference model utilizing data on emission-control enterprises in China’s carbon market to examine the influence of the carbon emissions trading mechanism on the bargaining power of high-carbon products. Empirical analysis is conducted using financial data from listed companies in China spanning the years 2010 to 2020. The findings indicate that the implementation of carbon emissions trading policies has a dampening impact on the product bargaining power of high-carbon enterprises. Moreover, carbon emissions trading policies have heterogeneous effects on the product bargaining power of high-carbon firms with different life cycles, with mature high-carbon firms receiving a boost and declining high-carbon firms receiving a dampening effect. Mechanism test finds that the incomplete transmission effect of cost shocks resulting from carbon emissions trading policies has negatively affect the product bargaining power of high-carbon enterprises. Further research finds that product quality is a key factor in determining the effect of the carbon emissions trading policy, and that the impact of the carbon emissions trading policy on the bargaining power of products of high-carbon firms takes on a "U" shape due to product quality. Once the product quality exceeds the bottleneck value of 0.5956, the policy significantly increases the bargaining power of products. The study confirms that the establishment of carbon markets can effectively increase the bargaining power of superior products. These results offer a comprehensive theoretical and practical foundation for nations to advance the development of carbon markets and facilitate the achievement of sustainable development by high-carbon enterprises.

show abstract

Section: Literature Review and Theoretical Hypothesesmentioning

confidence: 99%

Can carbon emissions trading policy promote product bargaining power increases for high-carbon enterprises? Evidence from China

Wang,

2024

PLoS ONE

View full text Add to dashboard Cite

show abstract

“…Chen Zhu et al proposed a horizontal low-carbon supply chain, using game theory and chaos theory to explore dynamic production and emission reduction strategies under the scenario of whether manufacturers adopt green technologies or not [44]. Hao Zou et al considered several low-carbon technology investment manufacturers and several risk-averse retailers, incorporated the characteristics of carbon quota policy and risk aversion into the decision-making process of LSC network, and studied the effects of carbon trading price, risk avoidance coefficient and inventory capacity restriction on product flow, emission reduction rate, pricing and profit of low-emission networks [45]. Liangjie Xia et al incorporated consumers' low-carbon awareness and social preferences, including relationship and status preferences, into a game of emission reduction and promotion involving a manufacturer and a retailer in the long run, and also examined the impact of some key parameters on the decision-making and performance of channel members [46].…”

Section: Reduce Carbon Dioxide Emissions As Much As Possible During D...mentioning

confidence: 99%

Pricing Decisions for Power Battery Closed-Loop Supply Chains with Low-Carbon Input by Echelon Utilization Enterprises

Xu,

Zhong

2023

Sustainability

View full text Add to dashboard Cite

Today, with the number of waste power batteries and consumers’ awareness of low-carbon both increasing, a new closed-loop supply chain model in which the node enterprises of reverse supply chains are being constructed. These are responsible for the recycling, echelon utilization and low-carbon innovation of waste power batteries. This provides a new way for the development of reverse supply chain node enterprises and lays a theoretical foundation. In this paper, we use the backward solution method to solve the Nash equilibrium solution of the Stackelberg game. Through numerical calculation and simulation, the decision variables, profit and income of the supply chain are analyzed and the equilibrium results are compared. The experimental results indicate that the implementation of low-carbon innovative production by cascaded utilization enterprises is conducive to the growth of their profits with lower cost inputs. The impact of the initial waste power battery recycling rate on the decision variables is negative, while, for the supply chain as a whole, the profit growth of the node companies can be positive and the location of the inflection point appears to be particularly important. The sensitivity coefficient of low-carbonization levels has a positive regulatory effect on decision variables and location of all parties. The closed-loop supply chain model proposed in this study promotes the overall development of a power battery closed-loop supply chain, and also provides theoretical guidance for reasonable pricing decisions of node enterprises under the new model. Based on the results of this paper, the government can implement incentives such as subsidies, or formulate reasonable policies for the development of a power battery closed-loop supply chain.

show abstract

“…In low-carbon supply chain operation management, carbon emissions are a constraint in low-carbon supply chain design and planning [ 6 ]. Scholars have analyzed the carbon emission reduction coordination and production/pricing decisions based on classical game theory [ 7 , 8 ], and previous studies analyzed stakeholder low-carbon behavior under carbon emission reduction policies based on the evolutionary game theory [ 9 , 10 ]. In terms of research content, the above research analyzed the carbon emission reduction strategies of enterprises but not the low-carbon cooperation among cloud manufacturing service providers.…”

Section: Introductionmentioning

confidence: 99%

Evolution analysis of low-carbon cooperation of service providers based on Moran process in cloud manufacturing

Han,

Lu,

Zhang

et al. 2024

PLoS ONE

View full text Add to dashboard Cite

Low-carbon cooperation among cloud manufacturing service providers is one way to achieve carbon peak and neutrality. Such cooperation is related to the benefits to service providers adopting low-carbon strategies and stochastic factors such as government low-carbon policies, providers’ environmental awareness, and demanders’ low-carbon preferences. Focusing on the evolutionary process of service providers’ low-carbon strategy selection under uncertain factors, a stochastic evolutionary game model is constructed based on the Moran process, and the equilibrium conditions for low-carbon cooperation among providers are analyzed under benefit-dominated and stochastic factor-dominated situations. Through numerical simulation, the effects of the cloud platform’s cost-sharing coefficient for low-carbon investment, matching growth rate, carbon trading price, and group size on providers’ low-carbon strategy evolution are analyzed. The research results show that increasing the cloud platform’s low-carbon cost-sharing, carbon trading price, and group size can promote low-carbon cooperation among service providers. With greater low-carbon investment costs and greater stochastic factor interference, the providers’ enthusiasm for low-carbon cooperation decreases. This study fills the research gap in the low-carbon cooperation evolution of cloud manufacturing providers based on the stochastic evolutionary game and provides decision-making suggestions for governments and cloud platforms to encourage provider participation in low-carbon cooperation and for providers to adopt low-carbon strategies.

show abstract

Equilibrium pricing mechanism of low-carbon supply chain considering carbon cap-and-trade policy

Cited by 9 publications

References 55 publications

Can carbon emissions trading policy promote product bargaining power increases for high-carbon enterprises? Evidence from China

Can carbon emissions trading policy promote product bargaining power increases for high-carbon enterprises? Evidence from China

Pricing Decisions for Power Battery Closed-Loop Supply Chains with Low-Carbon Input by Echelon Utilization Enterprises

Evolution analysis of low-carbon cooperation of service providers based on Moran process in cloud manufacturing

Contact Info

Product

Resources

About