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Coordinate the Supply Chain to Reduce Carbon Emissions

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LISS 2014
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Abstract

In recent years, low-carbon economy received extensive attention of the government and enterprises. To achieve a low-carbon economy, enterprises must invest in upgrading existing production processes to reduce carbon emissions per unit of product. Based on this idea, we study how to coordinate the supply chain to reduce carbon emissions. Specifically, we consider a manufacturer and a retailer who plan to invest funds to transform existing production processes to reduce carbon emissions. Investment decision making in the both centralized system and decentralized system is analyzed. We apply Nash Bargaining Game to design supply chain cooperation mechanisms to achieve supply chain coordination and improve the economic benefits as well as the environmental benefits.

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Acknowledgements

This work is supported in part by the National Natural Science Foundation of China (Grant No. 71390334, 71132008, 71072029), Program for New Century Excellent Talents in University (NCET-13-0660) and the Fundamental Research Funds for the Central Universities (2013JBZ019).

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Correspondence to Jing Gao .

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© 2015 Springer-Verlag Berlin Heidelberg

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Gao, J., Zhang, J. (2015). Coordinate the Supply Chain to Reduce Carbon Emissions. In: Zhang, Z., Shen, Z., Zhang, J., Zhang, R. (eds) LISS 2014. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-43871-8_35

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