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Sustainability 2017, 9(12), 2360; https://doi.org/10.3390/su9122360

Coordinating a Two-Echelon Supply Chain under Carbon Tax

School of Economics and Management, Southeast University, Nanjing 210018, China
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Received: 23 November 2017 / Revised: 10 December 2017 / Accepted: 15 December 2017 / Published: 18 December 2017
(This article belongs to the Section Economic, Business and Management Aspects of Sustainability)
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Abstract

In this paper, we study the impact of carbon tax on carbon emission and retail price in a two-echelon supply chain consisting of a manufacturer and a retailer. Specifically, by adopting two types of contracts, i.e., the modified wholesale price (MW) and the modified cost-sharing contract (MS), supply chain coordination is achieved, which promotes the supply chain efficiency. Our study shows that: (1) with the increase of carbon tax, both the optimal emission reduction level and the optimal retail price increase, and then keep unchanged; (2) neither MW nor MS benefits the manufacturer after the supply chain coordination; and (3) to effectively coordinate the supply chain, we propose an innovative supply chain contract that integrates the firms’ optimal decisions under MW or MS with a two part tariff contract (TPT) and a fixed fee the retailer can pay to ensure a win–win solution. View Full-Text
Keywords: carbon tax; modified wholesale price contract; modified cost-sharing contract; two-part tariff contract; channel coordination carbon tax; modified wholesale price contract; modified cost-sharing contract; two-part tariff contract; channel coordination
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
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Yu, W.; Han, R. Coordinating a Two-Echelon Supply Chain under Carbon Tax. Sustainability 2017, 9, 2360.

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