Which Is the Best Supply Chain Policy: Carbon Tax, or a Low-Carbon Subsidy?
- Which policy’s supply chain decision-making model is the best, and is there a Nash equilibrium solution?
- Which policy’s supply chain decision-making model leads to the greatest carbon emission reduction?
- Is there a link between the carbon tax coefficient and the rate of carbon emission reduction, manufacturer income, and subsidy rate?
2. Theoretical Analysis and Development of Model
2.1. Supply Chain Decision Model Based on Pure Carbon Tax Policy
- Parameter description.
- Profit model of supply chain members without the carbon tax mechanism.
- Profit model of the supply chain members under the carbon tax mechanism.
2.2. Supply Chain Decision Model Based on Pure Low-Carbon Subsidy Policy
- Model assumptions.
- Supply chain decision model without low-carbon subsidy.
- Supply chain decision model under low-carbon subsidy.
- Compare the supply chain decision-making model with or without low-carbon subsidies.
- Analysis of carbon emissions reduction and member income of low-carbon subsidies.
2.3. A Supply Chain Optimal Decision-Making Model Based on Carbon Taxes and Low-Carbon Subsidies
- A supply chain decision-making model under linear carbon tax and low-carbon subsidies is established.
- Model solving and analysis.
3. Numerical Simulation
3.1. Supply Chain Decision Simulation Based on Pure Carbon Tax
3.2. Supply Chain Decision Simulation Based on Pure Low-Carbon Subsidy Policy
- Analysis of the impact of carbon emissions reduction rate on member income without subsidy.
- Analysis of influencing factors of low-carbon subsidy strategy.
- Analysis of influencing factors of carbon emissions reduction.
- Analysis of the impact of low-carbon subsidies on member income.
- Analysis of carbon emissions and member income at decision-making equilibrium point.
3.3. Supply Chain Optimal Decision Simulation Based on Carbon Tax and Low-Carbon Subsidy Policy
- The influence of carbon tax coefficient on subsidy rate.
- The impact of carbon tax on carbon emission reduction.
- The effect of marginal profit distribution on subsidy rate under carbon tax.
- Impact of carbon tax on member earnings.
- Carbon reduction and member benefit analysis.
Data Availability Statement
Conflicts of Interest
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|w||Wholesale price of products ordered by retailers|
|p||Price a customer pays for the product|
|c||Cost per unit product produced by the manufacturer|
|Earnings of manufacturers and retailers|
|e||Carbon emissions per unit product produced by the manufacturer|
|Linear carbon tax coefficient|
|t||Carbon tax levied on enterprises by the government|
|No Low-Carbon Subsidies||Low-Carbon Subsidies|
|Optimal subsidy rate||—||0.1429|
|Carbon reduction rate||0.1833||0.2139|
|η||Carbon Reduction Rate||Manufacturer’s Revenue||Retailer Revenue|
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Wu, H.; Sun, Y.; Su, Y.; Chen, M.; Zhao, H.; Li, Q. Which Is the Best Supply Chain Policy: Carbon Tax, or a Low-Carbon Subsidy? Sustainability 2022, 14, 6312. https://doi.org/10.3390/su14106312
Wu H, Sun Y, Su Y, Chen M, Zhao H, Li Q. Which Is the Best Supply Chain Policy: Carbon Tax, or a Low-Carbon Subsidy? Sustainability. 2022; 14(10):6312. https://doi.org/10.3390/su14106312Chicago/Turabian Style
Wu, Hanbo, Yaxin Sun, Yutong Su, Ming Chen, Hongxia Zhao, and Qi Li. 2022. "Which Is the Best Supply Chain Policy: Carbon Tax, or a Low-Carbon Subsidy?" Sustainability 14, no. 10: 6312. https://doi.org/10.3390/su14106312