Document Type
Article
Publication Date
2-19-2019
Publication Title
Complexity
Volume
2019
First page number:
1
Last page number:
15
Abstract
The increased carbon emissions cause relatively climate deterioration and attract more attention of governments, consumers, and enterprises to the low-carbon manufacturing. This paper considers a dynamic supply chain, which is composed of a manufacturer and a retailer, in the presence of the cap-and-trade regulation and the consumers’ reference emission effects. To investigate the manufacturer’s behavior choice and its impacts on the emission reduction and pricing strategies together with the profits of both the channel members, we develop a Stackelberg differential game model in which the manufacturer acts in both myopic and farsighted manners. By comparing the equilibrium strategies, it can be found that the farsighted manufacturer always prefers to keep a lower level of emission reduction. When the emission permit price is relatively high, the wholesale/retail price is lower if the manufacturer is myopic and hence benefits consumers. In addition, there exists a dilemma that the manufacturer is willing to act in a farsighted manner but the retailer looks forward to a partnership with the myopic manufacturer. For a relatively high price of emission permit, adopting myopic strategies results in a better performance of the whole supply chain.
Disciplines
Automotive Engineering
File Format
File Size
2329 KB
Language
english
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.
Repository Citation
Wang, J.,
Cheng, X.,
Wang, X.,
Yang, H.,
Zhang, S.
(2019).
Myopic Versus Farsighted Behaviors in a Low-Carbon Supply Chain with Reference Emission Effects.
Complexity, 2019
1-15.
http://dx.doi.org/10.1155/2019/3123572