Differential game model on joint carbon emission reduction and low-carbon promotion in supply chains
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    Abstract:

    In the contextoflow-carbon economics,better market performance is usually achieved through the retailer’s promotion on the manufacturer’s emission reductions,which is a common cooperation manner in practical supply chain management. Assuming that demands were affected by the emission reduction of the product and the retailer’s promotion,three Differential Game Models were established,which was also based on the fact that the emission reduction of the product is affected by the efforts of the manufacturer to reduce emissions and it possesses dynamic features in multiple cycles. It was found that under the cost-sharing contract profits can achieve Pareto improvement for the manufacturer,retailer and the supply chain system under certain conditions; when the manufacturer’s marginal revenue is large enough,the improvement in profit for the manufacturer is more significant,and they would like to use the cost-sharing contract to inspire the retailer.Some valuable information could be provided for supply chain enterprises to develop collaborative strategies and to promote low-carbon supply chain management practice. Finally,the model was analyzed through an example.

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  • Online: April 22,2018
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