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Emission Reduction of Low-Carbon Supply Chain Based on Uncertain Differential Game

Author

Listed:
  • Xiangfeng Yang

    (University of International Business and Economics)

  • Peng Zhang

    (University of International Business and Economics)

Abstract

This paper studies the low-carbon production problem based on an uncertain differential game. In a two-stage low-carbon product supply chain consisting of a single supplier and a single manufacturer, we construct an uncertain differential equation by taking the emission reduction efforts of the supplier and manufacturer as decision variables and product emission reduction as a state variable. Based on the uncertain differential game, we obtain the supply chain’s dynamic equilibrium strategy, emission reduction, and revenue trajectory under non-cooperative and cooperative situations. By comparison, cooperation leads to more effort on both sides of the supply chain, more carbon emission reduction, and higher profits than non-cooperative ones. To further illustrate the supply chain game in the cooperative situation, we give different income situations under the two distribution methods of Nash bargaining solution and Shapley value, respectively.

Suggested Citation

  • Xiangfeng Yang & Peng Zhang, 2023. "Emission Reduction of Low-Carbon Supply Chain Based on Uncertain Differential Game," Journal of Optimization Theory and Applications, Springer, vol. 199(2), pages 732-765, November.
    • Handle: RePEc:spr:joptap:v:199:y:2023:i:2:d:10.1007_s10957-023-02305-1
    DOI: 10.1007/s10957-023-02305-1
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