Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation
Abstract
:1. Introduction
- (1)
- How do the players in the supply chain make pricing decisions, green level decisions and advertising decisions concerning supply chain structure, environmental regulation, and supply chain contract?
- (2)
- How does the environmental regulation impact the green level of the product and the advertising effort?
- (3)
- Can the environmental regulation and the cost-revenue-sharing contract effectively improve the performance of the joint emission strategy?
2. Literature Review
2.1. Sustainable Supply Chain Management
2.2. Environmental Regulation
2.3. Supply Chain Coordination
3. Problem Notations and Assumptions
4. Model Solutions and Discussions
4.1. Centralized Decision Model
4.1.1. Without Environmental Regulation
4.1.2. With Environmental Regulation
- (1)
- The optimal green level of product increase in if ;
- (2)
- The optimal advertising effort of retailer decrease in if ; where
4.2. Decentralized Decision Model
4.2.1. Without Environmental Regulation
4.2.2. With Environmental Regulation
- (1)
- ;
- (2)
- , where ;
- (3)
- , where .
- (1)
- For , then ;
- (2)
- There are that make the following corollary true. for , for , for and for , where is constrained to in which , , , and, .
- (1)
- Whether the manufacturer and retailer can provide socially optimal green efforts under environmental regulation?
- (2)
- If not, under what condition are the manufacturer and the retailer willing to provide socially optimal green efforts?
5. Emission Reduction Cost-Revenue-Sharing Contract
6. Conclusions and Future Research
Author Contributions
Funding
Acknowledgments
Conflicts of Interest
Appendix A
References
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Parameters | |
---|---|
Penalty or subsidy of government for per unit deviation from the standard | |
Green level standard | |
Unit production cost (not including emission reduction cost) | |
Cost coefficient of emission reduction | |
Potential demand for the product | |
Consumers’ demand sensitivity of the green level | |
Consumers’ demand sensitivity of advertising effort | |
Demand sensitivity of the price | |
Cost coefficient of advertising effort | |
Decision variables | |
Green level of the product | |
The wholesale price of the product | |
The unit selling price of the product | |
Advertising effort of the retailer |
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Zhang, W.; Xiao, J.; Cai, L. Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation. Sustainability 2020, 12, 3440. https://doi.org/10.3390/su12083440
Zhang W, Xiao J, Cai L. Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation. Sustainability. 2020; 12(8):3440. https://doi.org/10.3390/su12083440
Chicago/Turabian StyleZhang, Wensi, Jing Xiao, and Lingfei Cai. 2020. "Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation" Sustainability 12, no. 8: 3440. https://doi.org/10.3390/su12083440