A Study On Integrated Model Of Low-carbon Supply Chain Based On Carbon Emission Allocation

ABSTRACT:In the context of climate change, as the world carbon dioxide emission is increasing, low-carbon supply chain has arisen international attention, especially for managers. In terms of supply chain management, carbon footprint which emerged recent years spur companies to reveal and reduce their carbon emissions in challenge of low carbon economy. Foreign countries has developed carbon emission trading market which allows companies to transfer their emission under certain price so as to achieve emission targets which are initiated by Kyoto Protocal. While supply chain managers tend to focus on the design of low-carbon products, and operation optimization, minority embed carbon emission trading into supply chain, much less focus on impact of emission allocation, while three kinds of emission allocation, free of charge, fixed rate and bidding are mostly discussed by researchers. Carbon emission is valuable merchandise, companies’devotion to products vary with different way of emission allocations. Particularly, it’s easier for enterprises if government takes action to execute carbon emission trading scheme and allocate emissions to them for free, on the contrary, enterprises pay for emissions of their products at fixed rate or bidding from carbon emission trading market, which shows that emission allocation shares a close relationship with companies’profit. Our study is based on emission trading mechanism and theory of Optimization, aims to formulate three carbon reduction models under different allocation policy (free of charge, fixed rate, bidding), further discuss carbon reduction strategy made by enterprises, in order to offer directions for enterprises which are absent willingness to reduce their emission.