Skip to main content

Non-cooperative Game Based Carbon Emission Reduction for Supply Chain Enterprises with a Cap and Trade Mechanism

  • Conference paper
  • First Online:
Proceedings of the Thirteenth International Conference on Management Science and Engineering Management (ICMSEM 2019)

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 1002))

Abstract

With the increasing attention of society to the environmental issues, carbon emission rights have become a new type of resource with certain commercial value, which has changed the production function and cost structure of the original enterprises. In the course of operation, enterprises have increased the consideration of carbon emission rights from the original focus on “raw materials and products (services)”. Therefore, based on the carbon and trade mechanism, this paper deeply explores the decision-making of carbon emission reduction of the upstream and downstream enterprises in the supply chain and the choice of government carbon quota allocation scheme under the constraint of government carbon emissions, and uses game theory knowledge to analyze the effect of carbon emission reduction of upstream and downstream enterprises under the non-cooperative game. The results show that the emission reduction effect of the government’s carbon quota per unit of product allocation is more obvious than that of the direct total amount restriction, and it is beneficial for sustainability of supply chain systems.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Kaarstad, O.: Norwegian Carbon Taxes and Their Implication for Fossil Fuels (1995)

    Google Scholar 

  2. Bryant, G.: Creating a level playing field? the concentration and centralisation of emissions in the european union emissions trading system. Energy Policy 99, 308–318 (2016)

    Article  Google Scholar 

  3. Brink, C., Vollebergh, H.R.J., Werf, E.V.D.: Carbon pricing in the eu: Evaluation of different eu ets reform options. Energy Policy 97, 603–617 (2016)

    Article  Google Scholar 

  4. Chen, X., Chen, J.: Supply chain carbon footprinting and responsibility allocation under emission regulations. J. Environ. Manag. 188, 255–267 (2017)

    Article  Google Scholar 

  5. Chevallier, R.: Climate change progress, the us withdrawal and what we can expect from cop23. J. Environ. Manag. (2017)

    Google Scholar 

  6. Chinn, L.N.: Can the market be fair and efficient? An environmental justice critique of emissions trading. Ecol. Law Q. 26(1), 80–125 (1999)

    Google Scholar 

  7. Clò, S., Battles, S., Zoppoli, P.: Policy options to improve the effectiveness of the eu emissions trading system: A multi-criteria analysis. Energy Policy 57(6), 477–490 (2013)

    Article  Google Scholar 

  8. Coase, R.H.: The Problem of Social Cost (1960)

    Chapter  Google Scholar 

  9. Convery, F.J., Redmond, L.: Market and price developments in the European union emissions trading scheme. Rev. Environ. Econ. Policy 1(1), 88–111 (2007)

    Article  Google Scholar 

  10. Criqui, P., Mima, S., Viguier, L.: Marginal abatement costs of \(co_2\) emission reductions, geographical flexibility and concrete ceilings: An assessment using the poles model. Energy Policy 27(10), 585–601 (1999)

    Article  Google Scholar 

  11. Crossland, J., Li, B., Roca, E.: Is the European union emissions trading scheme (eu ets) informationally efficient? Evidence from momentum-based trading strategies. Appl. Energy 109(2), 10–23 (2013)

    Article  Google Scholar 

  12. Cruz, I.S., Katz-Gerro, T.: Urban public transport companies and strategies to promote sustainable consumption practices. J. Clean. Prod. 123, 28–33 (2016)

    Article  Google Scholar 

  13. Fang, G., Tian, L., et al.: How to optimize the development of carbon trading in china-enlightenment from evolution rules of the eu carbon price. Appl. Energy 211, 1039–1049 (2018)

    Article  Google Scholar 

  14. Hepburn, C.: Climate change economics: Make carbon pricing a priority. Nat. Clim. Chang. 7(6), 389–390 (2017)

    Article  Google Scholar 

  15. Herold, D.M., Lee, K.H.: Carbon disclosure strategies in the global logistics industry: similarities and differences in carbon measurement and reporting (2018)

    Google Scholar 

  16. Jiang, Z., Shao, S.: Distributional effects of a carbon tax on chinese households: A case of shanghai. Energy Policy 73(10), 269–277 (2014)

    Article  Google Scholar 

Download references

Acknowledgements

This research has been supported by the project of Research Center for System Sciences and Enterprise Development (Grant No. Xq18B02), Sichuan University (Grant No. 2018hhf-45), and China Scholarship Council (Grant No. 201806240126).

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Rui Qiu .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Wang, M., Hou, S., Qiu, R. (2020). Non-cooperative Game Based Carbon Emission Reduction for Supply Chain Enterprises with a Cap and Trade Mechanism. In: Xu, J., Ahmed, S., Cooke, F., Duca, G. (eds) Proceedings of the Thirteenth International Conference on Management Science and Engineering Management. ICMSEM 2019. Advances in Intelligent Systems and Computing, vol 1002. Springer, Cham. https://doi.org/10.1007/978-3-030-21255-1_34

Download citation

Publish with us

Policies and ethics