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Carbon Emission Reduction Decision-Making in an Online Freight Platform Service Supply Chain Under Carbon Trading Mechanism

Author

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  • Sisi Ju

    (Business School, Yangzhou University, Yangzhou 225127, China)

  • Peng Zhang

    (Business School, Yangzhou University, Yangzhou 225127, China)

Abstract

Promoting carbon emission reduction in road freight transportation is important to achieve low-carbon development. The carbon trading mechanism is an effective market mechanism to promote carbon emission reduction. The digital and networked features of the online freight platform (OFP) service supply chain (SSC) not only help the platform reduce carbon emissions but also facilitate the government’s achievement of efficient and economic supervision of carbon emissions. Therefore, this paper proposes two types of carbon trading mechanism based on the OFP SSC to investigate the carbon emission reduction decision of the OFP, namely an absolute emission cap-based allocation (AC) model and an intensity-based allocation (IC) model. By using game theory, we then analyze the optimal solutions of the OFP SSC under the non-participation in carbon trading market (NC model), the AC model, and the IC model. By comparing these decisions, we explore the impact of the carbon trading mechanism on the OFP SSC. Results show the following: (1) Carbon trading mechanisms reduce OFP emissions, particularly under IC models with high free allowances. (2) High initial allowances and low service costs under the carbon trading mechanism enhance the OFP’s profit. (3) The carbon trading mechanism can reduce the carbon emissions of the road freight sector when initial allowances are sufficient or the off-platform trucker’s carbon emission coefficient is low. The study concludes that the IC model optimizes emission cuts while maintaining platform profitability. From a managerial perspective, the government should adopt dynamic allowance policies and incentivize the OFP’s participation through data integration. OFPs must balance network growth with low-carbon technology adoption to align commercial and environmental objectives.

Suggested Citation

  • Sisi Ju & Peng Zhang, 2025. "Carbon Emission Reduction Decision-Making in an Online Freight Platform Service Supply Chain Under Carbon Trading Mechanism," Mathematics, MDPI, vol. 13(12), pages 1-31, June.
    • Handle: RePEc:gam:jmathe:v:13:y:2025:i:12:p:1930-:d:1675832
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