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Research on Carbon Emission Reduction Investment Decision of Power Energy Supply Chain—Based on the Analysis of Carbon Trading and Carbon Subsidy Policies

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  • Cheng Che

    (School of Economics and Management, China University of Petroleum (East China), Qindao 266580, China)

  • Huixian Zheng

    (School of Economics and Management, China University of Petroleum (East China), Qindao 266580, China)

  • Xin Geng

    (School of Economics and Management, China University of Petroleum (East China), Qindao 266580, China)

  • Yi Chen

    (School of Economics and Management, China University of Petroleum (East China), Qindao 266580, China)

  • Xiaoguang Zhang

    (School of Economics and Management, China University of Petroleum (East China), Qindao 266580, China)

Abstract

This study examines the carbon reduction investment decisions of the electric power energy supply chain considering carbon trading and carbon subsidy policies in China’s “dual carbon” context. By building a three-level supply chain system including electric power producers, retailers, and consumers, we discuss the optimal decision-making problem of the supply chain for three models of decentralized supply chain decision making without government subsidies, centralized supply chain decision making with government subsidies, and centralized supply chain decision making with government subsidies and carbon emission reduction cost sharing. Through model solving and further numerical simulations, the results showed that the increase in carbon emission reduction investment cost has a significant negative impact on power price and the total expected income of the supply chain. However, a reasonable level of government carbon emission reduction subsidy can effectively alleviate the increase in power price and improve the total expected income of supply chain. In addition, carbon mission reduction investment and supply chain cost allocation can effectively improve the carbon emission reduction level of the power supply chain, improve the income and enthusiasm of electric power producers, and realize the sustainable development of electric power energy consumption and the environment.

Suggested Citation

  • Cheng Che & Huixian Zheng & Xin Geng & Yi Chen & Xiaoguang Zhang, 2022. "Research on Carbon Emission Reduction Investment Decision of Power Energy Supply Chain—Based on the Analysis of Carbon Trading and Carbon Subsidy Policies," Energies, MDPI, vol. 15(17), pages 1-20, August.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:17:p:6151-:d:896708
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    References listed on IDEAS

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    1. Yang, Lei & Zhang, Qin & Ji, Jingna, 2017. "Pricing and carbon emission reduction decisions in supply chains with vertical and horizontal cooperation," International Journal of Production Economics, Elsevier, vol. 191(C), pages 286-297.
    2. Elkhan Richard Sadik-Zada & Mattia Ferrari, 2020. "Environmental Policy Stringency, Technical Progress and Pollution Haven Hypothesis," Sustainability, MDPI, vol. 12(9), pages 1-20, May.
    3. Bin Liu & Tao Li & Sang-Bing Tsai, 2017. "Low Carbon Strategy Analysis of Competing Supply Chains with Different Power Structures," Sustainability, MDPI, vol. 9(5), pages 1-21, May.
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