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Open AccessArticle

The Optimal Decisions for a Sustainable Supply Chain with Carbon Information Asymmetry under Cap-and-Trade

1
Research Center of Energy Economy, School of Business Administration, Henan Polytechnic University, Jiaozuo 454000, China
2
School of Business, Tianjin University of Finance and Economics, Tianjin 300222, China
3
Department of Mathematics, College of Science, Tianjin University of Technology, Tianjin 300384, China
*
Author to whom correspondence should be addressed.
Sustainability 2018, 10(4), 1002; https://doi.org/10.3390/su10041002
Received: 24 February 2018 / Revised: 13 March 2018 / Accepted: 22 March 2018 / Published: 28 March 2018
(This article belongs to the Special Issue Sustainable Supply Chain System Design and Optimization)
In this paper, we firstly investigate issues of low carbon supply chain including one retailer and one manufacturer in the context of joint information asymmetry and cap-and-trade mechanism, where the retailer is a leader and faces a stochastic demand, and the manufacturer is a follower and keeps private information in carbon emissions. Our aim is to design an incentive contract to make the manufacturer disclose the carbon information. Furthermore, we quantify the effects of the carbon price, the carbon emissions and the carbon quota on the supply chain model and design an incentive contract for improving supply chain performance. Finally, we give a couple of numerical examples and undertake sensitivity analysis to illustrate the proposed model and provide some managerial inferences in the conclusions. View Full-Text
Keywords: sustainable supply chain; carbon information asymmetry; carbon emissions; Cap-and-Trade; contract design sustainable supply chain; carbon information asymmetry; carbon emissions; Cap-and-Trade; contract design
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MDPI and ACS Style

Yuan, B.; Gu, B.; Guo, J.; Xia, L.; Xu, C. The Optimal Decisions for a Sustainable Supply Chain with Carbon Information Asymmetry under Cap-and-Trade. Sustainability 2018, 10, 1002.

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