Mixed Carbon Policies Based on Cooperation of Carbon Emission Reduction in Supply Chain

This paper established cooperation decision model for a mixed carbon policy of carbon trading-carbon tax (environmental tax) in a two-stage S-M supply chain. For three different cooperative abatement situations, we considered the supplier driven model, the manufacturer driven model, and the equilibr...

Full description

Saved in:
Bibliographic Details
Main Authors: Yongwei Cheng, Dong Mu, Yi Zhang
Format: Article
Language:English
Published: Wiley 2017-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2017/4379124
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1832552255673335808
author Yongwei Cheng
Dong Mu
Yi Zhang
author_facet Yongwei Cheng
Dong Mu
Yi Zhang
author_sort Yongwei Cheng
collection DOAJ
description This paper established cooperation decision model for a mixed carbon policy of carbon trading-carbon tax (environmental tax) in a two-stage S-M supply chain. For three different cooperative abatement situations, we considered the supplier driven model, the manufacturer driven model, and the equilibrium game model. We investigated the influence of mixed carbon policy with constraint of reduction targets on supply chain price, productivity, profits, carbon emissions reduction rate, and so on. The results showed that (1) high-strength carbon policies do not necessarily encourage enterprises to effectively reduce emissions, and increasing market acceptance of low carbon products or raising the price of carbon quota can promote the benign reduction; (2) perfect competitive carbon market has a higher carbon reduction efficiency than oligarch carbon market, but their optimal level of cooperation is the same and the realized reduction rate is in line with the intensity of carbon policy; (3) the policy sensitivity of the carbon trading mechanism is stronger than the carbon tax; “paid quota mechanism” can subsidize the cost of abatement and improve reduction initiative. Finally, we use a numerical example to solve the optimal decisions under different market situations, validating the effectiveness of model and the conclusions.
format Article
id doaj-art-c618507564614679890482812b545381
institution Kabale University
issn 1026-0226
1607-887X
language English
publishDate 2017-01-01
publisher Wiley
record_format Article
series Discrete Dynamics in Nature and Society
spelling doaj-art-c618507564614679890482812b5453812025-02-03T05:59:10ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2017-01-01201710.1155/2017/43791244379124Mixed Carbon Policies Based on Cooperation of Carbon Emission Reduction in Supply ChainYongwei Cheng0Dong Mu1Yi Zhang2School of Economics and Management, Beijing Jiaotong University, Beijing 100044, ChinaSchool of Economics and Management, Beijing Jiaotong University, Beijing 100044, ChinaSchool of Economics and Management, Beijing Jiaotong University, Beijing 100044, ChinaThis paper established cooperation decision model for a mixed carbon policy of carbon trading-carbon tax (environmental tax) in a two-stage S-M supply chain. For three different cooperative abatement situations, we considered the supplier driven model, the manufacturer driven model, and the equilibrium game model. We investigated the influence of mixed carbon policy with constraint of reduction targets on supply chain price, productivity, profits, carbon emissions reduction rate, and so on. The results showed that (1) high-strength carbon policies do not necessarily encourage enterprises to effectively reduce emissions, and increasing market acceptance of low carbon products or raising the price of carbon quota can promote the benign reduction; (2) perfect competitive carbon market has a higher carbon reduction efficiency than oligarch carbon market, but their optimal level of cooperation is the same and the realized reduction rate is in line with the intensity of carbon policy; (3) the policy sensitivity of the carbon trading mechanism is stronger than the carbon tax; “paid quota mechanism” can subsidize the cost of abatement and improve reduction initiative. Finally, we use a numerical example to solve the optimal decisions under different market situations, validating the effectiveness of model and the conclusions.http://dx.doi.org/10.1155/2017/4379124
spellingShingle Yongwei Cheng
Dong Mu
Yi Zhang
Mixed Carbon Policies Based on Cooperation of Carbon Emission Reduction in Supply Chain
Discrete Dynamics in Nature and Society
title Mixed Carbon Policies Based on Cooperation of Carbon Emission Reduction in Supply Chain
title_full Mixed Carbon Policies Based on Cooperation of Carbon Emission Reduction in Supply Chain
title_fullStr Mixed Carbon Policies Based on Cooperation of Carbon Emission Reduction in Supply Chain
title_full_unstemmed Mixed Carbon Policies Based on Cooperation of Carbon Emission Reduction in Supply Chain
title_short Mixed Carbon Policies Based on Cooperation of Carbon Emission Reduction in Supply Chain
title_sort mixed carbon policies based on cooperation of carbon emission reduction in supply chain
url http://dx.doi.org/10.1155/2017/4379124
work_keys_str_mv AT yongweicheng mixedcarbonpoliciesbasedoncooperationofcarbonemissionreductioninsupplychain
AT dongmu mixedcarbonpoliciesbasedoncooperationofcarbonemissionreductioninsupplychain
AT yizhang mixedcarbonpoliciesbasedoncooperationofcarbonemissionreductioninsupplychain