Coordinating a Two-Echelon Supply Chain under Carbon Tax
AbstractIn 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
Share & Cite This Article
Yu, W.; Han, R. Coordinating a Two-Echelon Supply Chain under Carbon Tax. Sustainability 2017, 9, 2360.
Yu W, Han R. Coordinating a Two-Echelon Supply Chain under Carbon Tax. Sustainability. 2017; 9(12):2360.Chicago/Turabian Style
Yu, Wei; Han, Ruizhu. 2017. "Coordinating a Two-Echelon Supply Chain under Carbon Tax." Sustainability 9, no. 12: 2360.
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.