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Research on Supply Chain Optimization Considering Consumer Subsidy Mechanism in the Context of Carbon Neutrality

Author

Listed:
  • Zheng Liu

    (School of Management, Shanghai University of Engineering Science, Shanghai 201620, China)

  • Wenzhuo Sun

    (School of Management, Shanghai University of Engineering Science, Shanghai 201620, China)

  • Bin Hu

    (School of Management, Shanghai University of Engineering Science, Shanghai 201620, China)

  • Chunjia Han

    (Department of Management, Birkbeck, University of London, London WC1E 7HX, UK)

  • Petros Ieromonachou

    (Greenwich Business School, University of Greenwich, Old Royal Naval College, Park Row, London SE10 9LS, UK)

  • Yuanjun Zhao

    (School of Accounting, Nanjing Audit University, Nanjing 211815, China)

  • Jiazhuo Zheng

    (School of Accounting, Nanjing Audit University, Nanjing 211815, China)

Abstract

With the proposal of China’s “carbon peak, carbon neutral” strategy, the increasing awareness of low carbon production among consumers, and the government’s introduction of carbon trading mechanism and low carbon consumption subsidy policies, enterprises are facing good opportunities for development. However, how the government can reasonably formulate low carbon policies and how enterprises can implement optimal low-carbon production decisions are still key issues in China’s low-carbon transition development. In this context, this paper is based on the carbon trading mechanism and carbon consumption subsidies. In this context, based on the carbon trading mechanism, this paper focuses on green production and green consumption, considers the impact of low-carbon consumer preferences and government subsidies on enterprises’ low-carbon production decisions, and uses the optimal theory to study the optimal pricing strategy and the optimal carbon reduction strategy. The study shows that the increase in carbon price has a positive effect on the increase in enterprise profit; the increase of carbon emission has a negative effect on the increase of enterprise profit and the high carbon price will intensify this effect. In addition, changing the intensity of government subsidies to consumers will lead to the change of enterprise carbon emission strategy. The study of this paper provides a certain reference for the government to reasonably formulate carbon trading prices and consumer low-carbon subsidies. In addition, considering consumer low-carbon preferences is also conducive to promoting green production practices of enterprises, thus promoting the realization of the carbon neutral strategy.

Suggested Citation

  • Zheng Liu & Wenzhuo Sun & Bin Hu & Chunjia Han & Petros Ieromonachou & Yuanjun Zhao & Jiazhuo Zheng, 2023. "Research on Supply Chain Optimization Considering Consumer Subsidy Mechanism in the Context of Carbon Neutrality," Energies, MDPI, vol. 16(7), pages 1-14, March.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:7:p:3147-:d:1112300
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    References listed on IDEAS

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    Cited by:

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