Manufacturer’s Decision as Consumers’ Low-Carbon Preference Grows

Abstract

This paper investigates five channel structures for manufacturers including three single channels and two dual channels. Consumers' low-carbon preference is considered to explore how market demands and channel selections will change as it remains stable and grows. To compare performances of the five channel structures, we further get the critical points consisting of construction cost of a platform, revenue proportion through a third-party platform, and offline proportion of total demands. The findings show that, when the construction cost is low, a self-owned platform performs better than a retail channel and a third-party platform. If the offline proportion is high, manufacturers would adopt or add a retail channel. When the manufacturers' revenue proportion is high, a third-party platform is more profitable. If the consumers' low-carbon preference grows, dual channels can be chosen to satisfy the increasing online and offline demands. The critical revenue proportion and offline proportion become smaller while the construction cost becomes larger. In addition, numerical analysis is provided to show profit changes and robustness of channel structure. Our findings can provide useful insights for decision-makers to implement low-carbon sustainability.

The Impact of Equity Financing on the Performance of Capital-Constrained Supply Chain under Consumers’ Low-Carbon Preference

“…The above equilibrium results have several interesting management implications. First, the analysis of the influence of consumers’ low-carbon preference, the interest rate of bank loan, the equity financing ratio, and the equity dividend ratio on the equilibrium results indicates that the increase in the consumers’ low-carbon preference has a positive effect on the equilibrium outcomes, which is similar to the prior studies of [ 4 , 5 , 17 , 18 , 19 , 20 , 21 , 22 , 23 ], while an increase in the interest rate of bank loan financing has the opposite effect; similarly, the equity financing ratio also has a positive effect on them; the equity dividend ratio only has an effect on the retailer’s profit but no effect on other equilibrium results. Different from the prior studies above, the influence of consumers’ low-carbon preferences in the capital-constrained low-carbon supply chain along with bank loan interest rate, equity financing ratio, and equity dividend ratio on the equilibrium results is considered in the analysis, which is the highlight of this work.…”

“…The development of a low-carbon economy has become trendy worldwide. Consumers’ low-carbon preference promotes carbon emissions reduction in the supply chain [ 22 ] and it affects supply chain operations and carbon emissions reduction decisions [ 18 , 23 ]. According to a study conducted by Wu et al in a market with high consumer preferences for low-carbon products, a reasonable cost-sharing ratio enables the coordination of carbon emissions reduction in the supply chain [ 2 ].…”

Optimal Channel Structure for Remanufacturing under Cap-and-Trade Regulation

“…In particular, from a research perspective, although the importance of carbon cap-and-trade regulations has been recognized (e.g., [19][20][21][22]), such studies do not pay attention to the effect of carbon cap-and-trade regulations on a manufacturer's remanufacturing operations with the flexibility to engage them in-house or outsource them to third-party remanufacturers. However, on the other hand, in the U.S. remanufacturing industry, we can observe that some brand-name manufacturers, including HP, Xerox, General Electric Company, and Ford, have undertaken their remanufacturing operations in-house.…”

“…Du et al [20] solved the manufacturer's multi-product joint pricing and production problem, with consumers valuing the low-carbon product more highly than the ordinary product, and they found that cap-and-trade may constrain the total carbon emissions and promote low-carbon production simultaneously. Lei et al [21]investigated five channel structures for manufacturers under consumers' low-carbon preference and showed that if the consumers' low-carbon preference grows, dual channels can be chosen to satisfy the increasing online and offline demands. Xu et al [22] analyzed a newsvendor problem with partial demand information under two kinds of carbon emission regulations, in which only the mean and variance of the demand distribution were known.…”

The Farmers’ Channel Selection and Sustainable Analysis under Carbon Tax Policy

“…Thus far, research on low-carbon supply chain management has continued to expand. For example, Yang et al [32] added the low-carbon preference of consumers into consideration. Ji et al [20] focused on the low-carbon strategy of retailers and manufacturers while considering consumers' low-carbon preferences and corporate carbon reduction strategies.…”