Game theoretical analysis of firms’ operational low-carbon strategy under various cap-and-trade mechanisms

Li, Guo; Zheng, Hong; Ji, Xiang; Li, Haifeng

doi:10.1016/j.jclepro.2018.06.177

Cited by 92 publications

(38 citation statements)

References 39 publications

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“…In fact, the production cost strongly influences the equilibrium decisions of the channel members. Thus, adding the production cost to the game model is an interesting and worthwhile discussion (Li et al., ). Second, this study does not consider the influence of decision sequence on the game model (Feng et al., 2018; Li et al., ).…”

Section: Resultsmentioning

confidence: 99%

Financing strategies for a capital‐constrained manufacturer in a dual‐channel supply chain

Xiao

2019

Int Trans Operational Res

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This study investigates a co-opetition-type dual-channel supply chain that consists of a competitive supplier (CS) and a capital-constrained manufacturer (CCM). The CCM procures key components from and simultaneously competes with the CS in the consumer market. To address the CCM's capital constraint, we consider three financing strategies, namely, trade credit, bank loan, and hybrid financing (i.e., combined use of bank loan and equity financing). Game models are established to characterize the interactions between the CS and CCM. The corresponding equilibria are derived under each strategy. Then, comparative analyses are conducted, and the CS's and CCM's preference structures regarding the three strategies are revealed. On this basis, the equilibrium strategy can be concluded as either trade credit or hybrid financing, but never bank loan. Specifically, when the equity financing ratio is small or large, trade credit is an equilibrium strategy. When the equity financing ratio is medium, the equilibrium strategy between trade credit and hybrid financing is determined by consumers' product preference and loan interest rate.accounted for a combined shipping volume of over 533 million units in 2017. This value is equivalent to 36.3% of the global smartphone market. 2 Although the two companies are in fierce competition in their industry, they cooperate with each other in many areas. 3 Notably, Samsung has provided Apple with processors and OLED screens for many years. 4 Such "co-opetition" is prevalent in many high-technology industries. Other typical examples are IBM and Cisco. The former purchases network equipment from the latter, while simultaneously competing in the overall server market. 5 The dual-channel supply chain, in which a supplier provides a manufacturer with key components while the two companies compete with each other in the final market, is common in real businesses. However, in practice, certain manufacturers in such dual-channel supply chains may lack capital to support production. For example, the smartphone screens used by Gionee, a well-known smartphone manufacturer in China, have always been provided by Foxconn. However, in recent years, Gionee has encountered capital-shortage problems and sought financing instruments to support its production. Consequently, one of the critical challenges for Gionee is selecting a suitable financing strategy.Accordingly, we extend the current literature by examining a co-opetition-type dual-channel supply chain, which consists of a competitive supplier (CS) and a capital-constrained manufacturer (CCM). The two firms are cooperative in component supply but competitive in the consumer market. Specifically, the CCM procures components from the CS. Meanwhile, the two companies compete by selling substitutable products in the same consumer market. For the capital constraint of the CCM, we consider three financing strategies. In Strategy 1 (trade credit), the CS offers trade credit to the CCM. In Strategy 2 (bank loan), the CCM seeks a bank loan to support its ...

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Section: Resultsmentioning

confidence: 99%

Financing strategies for a capital‐constrained manufacturer in a dual‐channel supply chain

Xiao

2019

Int Trans Operational Res

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“…There are a great many literatures concerned about the optimal production decisions and emission reduction decisions of enterprises under cap-and-trade policy [2,5,6]. Wang et al developed a mathematical model to test the impact of cap-and-trade system on enterprise's production planning and emission reduction strategy.…”

Section: Supply Chain Operation Decisions Under Cap-and-trade Policymentioning

confidence: 99%

“…In addition, the bigger ε i is, the more the cost of emission reduction is. (5) Under the constraints of cap-and-trade policy, we assumed that the government uses the benchmark-based emission method to allocate the quotas for the construction products, which means that the government establishes the carbon emission quotas according to the advanced carbon emission level of construction area [47]. When enterprises use up the free quotas allocated by the government, they need to purchase additional quotas from the carbon trading market to meet demand.…”

Section: Model Description and Assumptionmentioning

confidence: 99%

“…A numerical study is carried out to verify the conclusions and illustrated the profits of the supply chain decreased with the increase of carbon emission reduction cost coefficient, and had nothing to do with the emission reduction efficiency of enterprises.Sustainability 2019, 11, 1215 2 of 24 new energy technologies, more and more researchers follow with interest the optimization of the supply chain operation strategies to reduce GHG emissions [2].Cap-and-trade policy is one of the four major emission reduction methods proposed in the Kyoto Protocol, which can achieve the goals of energy conservation and emission reduction through government control and market regulation. The cap-and-trade method is one of the most prevalent emission regulation mechanisms worldwide [5]. Carrying out cap-and-trade policy, from a standpoint of the environment, it can improve air quality and mitigate climate change, and from the perspective of the economy, it can reduce the costs of emission reduction and promote low-carbon transition.…”

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confidence: 99%

“…Cap-and-trade policy is one of the four major emission reduction methods proposed in the Kyoto Protocol, which can achieve the goals of energy conservation and emission reduction through government control and market regulation. The cap-and-trade method is one of the most prevalent emission regulation mechanisms worldwide [5]. Carrying out cap-and-trade policy, from a standpoint of the environment, it can improve air quality and mitigate climate change, and from the perspective of the economy, it can reduce the costs of emission reduction and promote low-carbon transition.…”

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Profit Distribution Model for Construction Supply Chain with Cap-and-Trade Policy

Jiang

2019

Sustainability

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Cap-and-trade has become one of the most widely used carbon emission limitation methods in the world. Its constraints have a great impact on the carbon emission reduction decisions and production operations of supply chain enterprises, as well as profit distribution. In the construction supply chain, there are few studies on the profit distribution and emission reduction decisions considering cap-and-trade policy. This paper investigates the profit distribution model of a two-echelon construction supply chain consisting of a general contractor and a subcontractor with cap-and-trade policy. Using game theory and Shapley value method, the optimal emission reduction decisions and profit distribution under three cooperation modes of pure competition, co-opetition, and pure cooperation are obtained, respectively. The research shows that the profits of the construction supply chain are increasing in pure competition, co-opetition, and pure cooperation scenarios, and the emission reduction amount of the construction supply chain in the case of pure cooperation is greater than that of pure competition and co-opetition. The carbon emission reduction amount under the co-opetition scenario is not always greater than that under the pure competition scenario, which depends on the emission reduction cost coefficient relationship of general contractor and subcontractor. When the cost coefficient of emission reduction of the general contractor is less than that of the subcontractor, the emission reduction amount under pure competition is larger than that under co-opetition. A numerical study is carried out to verify the conclusions and illustrated the profits of the supply chain decreased with the increase of carbon emission reduction cost coefficient, and had nothing to do with the emission reduction efficiency of enterprises.

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Green supply chain management in Chinese firms: Innovative measures and the moderating role of quick response technology

Lin

Choi

et al. 2019

J of Ops Management

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310

152

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The last decade has witnessed a sharp rising trend in environmental awareness and protection in China. Green supply chain management (GSCM) has been regarded as an effective tool in China for mitigating the negative effects that firms have on the environment. However, the extent to which GSCM pressures influence GSCM practices, and whether and how GSCM practices affect GSCM performance are topics that remain under-explored. Combining Institutional Theory, Resource-Based View (RBV) Theory, and the literature on GSCM, our study sheds light on the relationship among GSCM pressures, practices, and performance under the moderating effect of quick response (QR) technology. Using statistical analysis of the collected data and case studies from companies in China, we establish several results. First, among different GSCM pressures, market and export pressures have significant impacts on GSCM practices, whereas cost pressure does not influence GSCM practices significantly. Second, internal improvement practice exerts a significant impact on GSCM practices, while external improvement practice negatively affects positive economic performance. In addition, ecology practice has significantly influenced environmental, positive economic, and operational performance. Third, QR technology suppresses the positive effect between internal improvement practice and negative economic performance. Two real cases from Huawei (telecommunications technologies) and Beijing Benz Automotive (automobile manufacturing) are conducted to verify the findings and generate additional insights. Our findings contribute to the literature and provide guidance to help governments and companies establish effective and innovative GSCM policies. K E Y W O R D S green supply chain management, multi-methodological research, performance, practice, pressures, quick response 1 | INTRODUCTION 1.1 | Background Environmental sustainability is a global concern. For a long time, governments, academies, and enterprises have considered the trade-off between economic growth and environmental preservation and sought out optimal strategies (

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Game theoretical analysis of firms’ operational low-carbon strategy under various cap-and-trade mechanisms

Cited by 92 publications

References 39 publications

Financing strategies for a capital‐constrained manufacturer in a dual‐channel supply chain

Financing strategies for a capital‐constrained manufacturer in a dual‐channel supply chain

Profit Distribution Model for Construction Supply Chain with Cap-and-Trade Policy

Green supply chain management in Chinese firms: Innovative measures and the moderating role of quick response technology

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