Low carbon supply chain pricing and coordination mechanism considering fairness concern under carbon trading
In order to implement the government's carbon emission reduction requirements and ensure the sustainable development of the enterprise economy,the carbon emission trading machine has become an effective economic means. In the context of carbon emission trading,manufacturing enterprises tend to pay more attention to the fairness of profit distribution when increasing emission reduction investment costs in order to achieve low-carbon goals. At this point,how to conduct emission reduction investment and profit distribution based on fairness concerns has become the focus of supply chain coordination decision-making. This article took a manufacturer producing low-carbon products and a retailer in charge of product sales as the objects,considering into account the influence of carbon emission trading mechanism,enterprises' carbon emission reduction investment and fairness concerns preference factors. This paper constructed a sustainable low-carbon supply chain,and discussed the optimal pricing and emission reduction decision-making process of the supply chain system under the situation of manufacturers' equity concern by using game theory and the absolute fairness method of income distribution. Further,a carbon emission reduction cost sharing contract was adopted to coordinate the decision-making process of the supply chain system. The optimal contract parameter values were obtained. The research results indicate that manufacturers have adopted a strategy of increasing wholesale prices and reducing emission reduction rates to reduce unfair distribution of profits caused by investment in emission reduction technologies,which has resulted in a loss of profits for themselves and partners. In order to achieve effective coordination of interests among members of the low-carbon supply chain,the cost sharing contract designed in the article can not only improve the emission reduction rate of the supply chain system,but also achieve Pareto improvement of the profits of each member. In addition,the carbon trading mechanism is conducive to encouraging enterprises to invest in carbon emission reduction to improve the emission reduction level of products. The research results can provide reference for further improving the relationship between upstream and downstream enterprises and promoting the sustainable development of the supply chain system economy and environment.
carbon tradingfairness concernlow-carbon supply chainpricingcoordinated decision-makinggame theory