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Open AccessArticle

The Impacts of Regulations and Financial Development on the Operations of Supply Chains with Greenhouse Gas Emissions

by Zhuang Xiao 1,2, Yixiang Tian 1,* and Zheng Yuan 1
1
School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 610054, China
2
School of Management and Economics, Chongqing University of Arts and Sciences, Yongchuan 402160, China
*
Author to whom correspondence should be addressed.
Int. J. Environ. Res. Public Health 2018, 15(2), 378; https://doi.org/10.3390/ijerph15020378
Received: 8 December 2017 / Revised: 17 February 2018 / Accepted: 19 February 2018 / Published: 22 February 2018
(This article belongs to the Special Issue Decision Models in Green Growth and Sustainable Development)
To establish a micro foundation to understand the impacts of greenhouse gas (GHG) emission regulations and financial development levels on firms’ GHG emissions, we build a two-stage dynamic game model to incorporate GHG emission regulations (in terms of an emission tax) and financial development (represented by the corresponding financing cost) into a two-echelon supply chain. With the subgame perfect equilibrium, we identify the conditions to determine whether an emission regulatory policy and/or financial development can affect GHG emissions in the supply chain. We also reveal the impacts of the strictness of GHG emission regulation, the financial development level, and the unit GHG emission rate on the operations of the supply chain and the corresponding profitability implications. Managerial insights are also discussed. View Full-Text
Keywords: greenhouse gas (GHG); GHG emission regulation; financial development; supply chain management greenhouse gas (GHG); GHG emission regulation; financial development; supply chain management
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Xiao, Z.; Tian, Y.; Yuan, Z. The Impacts of Regulations and Financial Development on the Operations of Supply Chains with Greenhouse Gas Emissions. Int. J. Environ. Res. Public Health 2018, 15, 378.

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