Journal article
Supply chain carbon emission reductions and coordination when consumers have a strong preference for low-carbon products
Environmental Science and Pollution Research, Vol.28(16), pp.19969-19983
2021
PMID: 33410025
Abstract
Owing to the rising concerns about environmental degradation worldwide, firms in several developed and developing countries are pursuing carbon emission reduction targets. In addition, in recent years, there is evidence of a shift in consumer preferences in favour of low-carbon products. Using a theoretical model, where the shift in consumer preferences is explicitly incorporated, we evaluate the impact of carbon emission reduction cost-sharing on supply chain profit. In our model, consumers are willing to pay a higher price for low-carbon products and hence the retailer considers sharing the cost of carbon emission reduction with the manufacturer. Our model also includes a carbon trading mechanism. We identify a range of carbon emission reduction cost-sharing such that both supply chain enterprises are better-off. We find that, while achieving the aim of carbon emission reduction, consumer preference for low-carbon products can benefit both supply chain enterprises. Numerical simulations show that carbon emission reduction cost-sharing increases the retailer's order quantity as well as the profit and hence there is an incentive for the two supply chain enterprises to cooperate.
Details
- Title
- Supply chain carbon emission reductions and coordination when consumers have a strong preference for low-carbon products
- Authors
- Mei-lian Liu (Author) - Guilin University of Electronic TechnologyZong-huo Li (Author) - Guilin University of Electronic TechnologySajid Anwar (Author) - University of the Sunshine Coast, Queensland, USC Business School - LegacyYun Zhang (Corresponding Author) - Shanghai Lixin University of Accounting and Finance
- Publication details
- Environmental Science and Pollution Research, Vol.28(16), pp.19969-19983
- Publisher
- Springer
- DOI
- 10.1007/s11356-020-09608-0
- ISSN
- 1614-7499
- PMID
- 33410025
- Organisation Unit
- University of the Sunshine Coast, Queensland; School of Business and Creative Industries; USC Business School - Legacy; Indigenous and Transcultural Research Centre
- Language
- English
- Record Identifier
- 99502308702621
- Output Type
- Journal article
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