Oligopolistic Competition And Coordination Of Supply Chain Emissions Reduction Under Carbon Trade

The rapid development of industrialization produce greenhouse gases has seriously damaged the environment and sustainability and impacted human life. Economists considered carbon emissions trading can achieve a "double dividend" and become the focus of world attention, and gradually pilot in several Chinese provinces. Nowadays, growing problem in the environment and increasingly fierce competition among enterprises, how companies market competition and coordination in the supply chain, through the game and carbon reduction investment to achieve economic efficiency and environmental benefits, become the focus of research.In this paper, we study from the microscopic point to analysis the carbon pricing mechanism, the market competition and the supply chain coordination. Firstly, we develop carbon emissions pricing model to analyze the impact of carbon emission factors, and to study the market condition on the impact of carbon emission rights. And then, we study company’s operation from two aspects:the market competition and the supply chain coordination. In the market competition, we developed an oligopolistic competition model under carbon trading and carbon reduction investment analysis model to study the carbon price and output decisions of company investment in carbon reduction impact; In the supply chain coordination, we develop a stochastic demand supply chain wholesale price contract model to study the demand uncertainty and carbon emission rights prices on the supply chain enterprises.The analysis indicated that carbon emission rights prices only related with carbon emissions targets set by the government and the emission situation of company; In the highly profitable monopoly industries, if the abatement technology can’t bring profit to company, the carbon emissions trading policy cannot effectively guide company to reduction, although the carbon reduction investment can reduce the cost of carbon trade; In the supply chain, with the carbon trading prices arising, the cost of carbon emissions will lead to manufacture to invest carbon reduction, manufacturers for cost-effectiveness considerations will increase wholesale prices, making the retailer’s order quantity reduced, thereby reducing the manufacturer’s production scale and carbon emissions.