Dynamic game analysis of R&D investment in low carbon supply chain

Author(s):  
Zhao Huijuan ◽  
Li Zhen
2017 ◽  
Vol 117 (10) ◽  
pp. 2468-2484 ◽  
Author(s):  
Xu Chen ◽  
Xiaojun Wang

Purpose In the era of climate change, industrial organizations are under increasing pressure from consumers and regulators to reduce greenhouse gas emissions. The purpose of this paper is to examine the effectiveness of product mix as a strategy to deliver the low carbon supply chain under the cap-and-trade policy. Design/methodology/approach The authors incorporate the cap-and-trade policy into the green product mix decision models by using game-theoretic approach and compare these decisions in a decentralized model and a centralized model, respectively. The research explores potential behavioral changes under the cap-and-trade in the context of a two-echelon supply chain. Findings The analysis results show that the channel structure has significant impact on both economic and environmental performances. An integrated supply chain generates more profits. In contrast, a decentralized supply chain has lower carbon emissions. The cap-and-trade policy makes a different impact on the economic and environmental performances of the supply chain. Balancing the trade-offs is critical to ensure the long-term sustainability. Originality/value The research offers many interesting observations with respect to the effect of product mix strategy on operational decisions and the trade-offs between costs and carbon emissions under the cap-and-trade policy. The insights derived from the analysis not only help firms to make important operational and strategic decisions to reduce carbon emissions while maintaining their economic competitiveness, but also make meaningful contribution to governments’ policy making for carbon emissions control.


Author(s):  
Muhammad Shabir Shaharudin ◽  
Yudi Fernando

The threat of climate change is due to increasing carbon emissions of manufacturing production and transportation. Currently, government is encouraging manufacturing to reduce carbon emission and conduct low carbon supply chain management (LCSCM). In order to solve the greenhouse gas emission dilemma, LCSCM is essential for manufacturing firms' stakeholders. Supply chain partners are expected to know the proper measurement of emissions to solve this problem. This chapter's aim is to review literature on how to measure LCSCM. In the past, the concept of green supply chain management (GSCM) was practiced to promote and reduce environmental risks. However, GSCM is a driver or practice to achieve environmental outcomes. The extended model of GSCM currently practices LCSCM through carbon footprint (CF) concept. In other words, LCSCM is an outcome that both interests researchers and persuades practitioners.


Energies ◽  
2018 ◽  
Vol 11 (11) ◽  
pp. 3013 ◽  
Author(s):  
Qinpeng Wang ◽  
Longfei He ◽  
Daozhi Zhao ◽  
Michele Lundy

Among responses to governmental regulations for curbing carbon emissions, outsourcing carbon reduction to a specialized third-party is an important means to satisfy a variety of carbon-emission restraints. In this situation, however, designing efficient contracts for emission reducing while retaining appropriate supply-chain profit is a substantial but challenging problem. We therefore refine this from practice and consider a low-carbon supply chain consisting of one manufacturer and one retailer to analyze in which conditions the system should outsource its carbon reduction efforts to an external expert firm under the assumption that consumers with a sense of social responsibility prefer low carbon products. In the decarbonization expert firm embedded supply chain, we examine the respective impacts of three cost-pooling schemes for emission reduction on supply chain performances. We find that the manufacturer-undertaking contract is the worst in terms of profit and carbon reduction level among the contracts being studied, while the retailer-undertaking contract yields the best outcome in terms of the profit and performs well in carbon reduction when the contractor has cost efficiency in carbon reduction, which is even better than the joint-undertaking contract in carbon reduction when the contractor is inefficient. The study shows the diversity of contracts on outsourcing carbon reduction significantly impacts the supply chain profitability, carbon reduction efficiency and sustainability of operations.


Procedia CIRP ◽  
2019 ◽  
Vol 83 ◽  
pp. 690-693 ◽  
Author(s):  
Jianjun Yu ◽  
Wenjun Shi ◽  
Yanli Fang

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