Pricing and Emission Reduction Strategy of Manufacturer with Carbon Emission Constraints in Low Carbon Supply Chain

Xi Liang, Yu Xiong, Yun Zhang Hou, Senmao Xia

Research output: Contribution to journalArticle

Abstract

In a supply chain which contains one manufacturer and one retailer, the paper introduces the amount of emissions per unit of output produced, and analyses the effects of customer and regulatory environmental pressures on the optimal price and carbon emission. The results show that the optimal wholesale price and retail price are positively related to regulatory environmental pressure and negatively related to customer environmental pressure, and the manufacturer's profit-maximizing level of emissions is determined by the customer environmental sensitivity and initial level of emissions, and the environmental performance of the manufacturer and the retailer's profit are affected by customer and regulatory environmental pressures and market size and costs for environmental investments.
Original languageEnglish
Pages (from-to)659-662
Number of pages4
JournalKey Engineering Materials Journal
Volume572
DOIs
Publication statusPublished - 2014

Keywords

  • Carbon Emission (CE)
  • Carbon Trading
  • Emission Reduction
  • Low-Carbon
  • Pricing

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