Research On Emission Reduction Decision And Coordination Of Embedded Low Carbon Service Supply Chain

With the development of low-carbon economy,people pay more and more attention to the low-carbon supply chain.The product manufacturing would release more carbon emission than other links in the supply chain.Therefore,the manufacturing enterprises are responsible to conduct green upgrading,and develop to the mode of low energy consumption,lowemission and high-efficiency.In this case,the manufacturing enterprises are under high abatement pressure for carbon emission.Nowadays,since many enterprises lack professional emission reduction technology,they often choose to outsource emission reduction project to professional company,namely Energy Service Company(ESCO).due to the lack of professional ability,it is difficult for manufacturers to estimate the real emission reduction capacity of ESCO,and it is impossible to monitor the progress of emission reduction project in real time.According to statistics from the National Development and Reform Commission of the People’s Republic of China,many ESCOs exist problem like project fraud,for example in deceiving the capability of carbon emission reduction.In information asymmetry circumstance,manufacturer would not only suffer from economic losses compared with the full information circumstance,but also could not achieve the optimum emission reduction effect.At the same time,most ESCOs purchase emission reduction equipment and technology through financing.However,due to difficulties in financing and capital recovery,there is a shortage of fund,which hinders the continuous operation of emission reduction project and ultimately affects the emission reduction effect.Thus,asymmetry and financing difficulties are the two major factors that affect the effect of emission reduction.And how to design a reasonable contract is of great significance to promote the sustainable operation of emission reduction project.Therefore,in view of the above research background,this thesis constructs an embedded low-carbon service low-carbon supply chain composed of a manufacturer and an ESCO.This thesis considers two scenarios of embedded low-carbon service supply chain with technology embeddedness,embedded low-carbon service supply chain with technology embeddedness and capital embeddedness,and studies the manufacturer’s contract decision problem when facing information asymmetry of ESCO’s carbon reduction efficiency,and solves the following two issues:(i)Under the screening contract or the pooling contract,how does manufacturer design contract parameters to maximize its profit?(ii)For manufacturer,in the screening contract and the pooling contract,which one is the optimal choice according to its different goal,namely carbon reduction level,profit or cooperation period,respectively? The results show that:(1)Manufacturer needs to set clear goal according to their requirement.The manufacturer providing the screening contract could obtain the higher carbon reduction level when cooperating with high-efficiency ESCO compared with providing the pooling contract.On the contrary,when cooperating with low-efficiency ESCO,manufacturer providing the pooling contract would obtain higher carbon reduction level.Cooperation with whatever types of ESCO,if pursuing higher profit,manufacturer should choose the pooling contract.From the perspective of cooperation period,if seek short-term cooperation,manufacturer should adopt the screening contract.However,if seek long-term cooperation,manufacturer should choose to provide the pooling contract.(2)When a manufacturer holds an ESCO stake,whether in pursuit of high emission reduction level or high profit,the manufacturer should choose to offer a screening contract.Meanwhile,when making equity investment,it is necessary for manufacturer to decide the shareholding ratio carefully and balance the relationship between the emission reduction level and profit.(3)Compared with the case of no shareholding,the manufacturer’s shareholding strategy(that is,the manufacturer’s capital embedding)could further improve the emission reduction level and its own profit;Under the screening contract,the further shareholding of the manufacturer could relieve the asymmetric carbon reduction information between ESCO and manufacturer.The main contributions of this thesis include:(1)This thesis studies the decision-making and coordination of ESCO’s participation in low-carbon service supply chain emission reduction from the perspective of embeddedness(technology embeddedness and capital embeddedness),which enriches the theory of embedded low-carbon service supply chain;(2)Considering both information asymmetry and the financing difficulty of ESCO,equity cooperation is introduced into the embedded low-carbon service supply chain for analyzing.And the research on low-carbon service supply chain with emission reduction information asymmetry and equity cooperation is expanded.The findings could provide reference for manufacturers’ decision-making in the context of low-carbon service supply chain.