Research On Supply Chain Emission Reduction Decision Considering Manufacturer Competition Under Internal And External Carbon Allowance Trading

With the increasingly prominent global ecological and environmental problems,carbon caps and carbon trading have become environmental constraints for the development of enterprises.China has adopted carbon trading as an effective way to reduce carbon emissions.In the supply chain management,carbon emissions are formed by suppliers and manufacturers in the completion of raw material supply and product manufacturing.In order to stay within the carbon quota,companies in the supply chain usually achieve emission reduction through economic energy substitution,energy saving and emission reduction technology improvement,as well as carbon capture and storage,and gradually develop towards low carbon enterprises.However,in the effort to reduce emissions,some enterprises still face some carbon quota shortages and must purchase them from the trading market.Thus,when there is a situation that some enterprises in the supply chain have a surplus of carbon allowances and some have a shortage of carbon allowances,two different types of carbon trading pathways will be formed: external carbon trading and carbon trading among enterprises within the supply chain,and the choice of which strategy is better becomes a question that must be considered by the supply chain member enterprises.Based on this background,the emission reduction decisions and contractual coordination of a secondary low-carbon supply chain consisting of a single supplier and competing manufacturers(low-carbon manufacturers,common manufacturers)are studied.First,we study the carbon reduction problem of firms in competitive supply chains when low-carbon firms(low-carbon manufacturers)are driven by environmental protection and consumers’ low-carbon preferences to take the initiative to adopt carbon reduction technologies.Second,when the government imposes carbon quota constraints on firms,supply chain member firms can trade external carbon quotas in the carbon trading market,and a centralized decision making,decentralized decision making,and Shapley contract coordination model is developed to help firms better cope with carbon quota constraints.Again,when supply chain members can trade carbon quotas both outside and inside the supply chain,we analyze the conditions for supply chain members to trade carbon quotas internally and determine the price of internal carbon trading at this time.Finally,we compare three different scenarios: no government carbon quota policy,external carbon trading only with policy,and both internal and external carbon trading,and analyze the differences in decision making and profits of each supply chain member.Through the study,the following conclusions are drawn:(1)The profits of each member of the supply chain and the supply chain as a whole are improved after contractual coordination of the supply chain,and the Shapley value method plays an important role in coordinating the profits of the supply chain.(2)Factors such as product competition intensity,consumer low-carbon preferences and carbon trading price significantly affect the determination of market equilibrium decisions,and companies should take product competition intensity and consumer low-carbon preferences into consideration in their production decisions to improve corporate profits.The impact of product competition intensity is greatest in the absence of a carbon quota trading model.The influence of carbon trading price is greatest when there is a carbon quota trading model.(3)When setting the price of carbon trading,both carbon emissions and market conditions should be taken into account,and the impact of high product competition and high carbon trading prices will lead to price increases when manufacturers sell their products in a sustainable manner.(4)Comparing the absence of carbon trading with the existence of carbon trading,it is found that the relationship between the size of the decision is uncertain,and the supply chain management is beneficial only when the constraints are met.(5)Internal carbon trading can only exist when there are certain constraints between the abatement cost factor,product competition intensity and external carbon trading price.