IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v14y2026i3p522-d1853993.html

Dual-Leverage Effects of Embeddedness and Emission Costs on ESCO Financing: Engineering-Driven Design and Dynamic Decision-Making in Low-Carbon Supply Chains

Author

Listed:
  • Liurui Deng

    (School of Business, Hunan Normal University, Changsha 410081, China)

  • Lingling Jiang

    (School of Business, Hunan Normal University, Changsha 410081, China)

  • Shunli Gan

    (School of Business, Hunan Normal University, Changsha 410081, China)

Abstract

Against the backdrop of carbon quota trading policies and Energy Performance Contracting (EPC), Energy Service Companies (ESCOs) engage in supply chain emission reduction via embedded low-carbon services. However, the impact mechanism of their financing mode selection on emission reduction efficiency and economic benefits has not been fully revealed, and there is a lack of support from a systematic theoretical and engineering design framework. Therefore, this study innovatively constructs a multi-agent Stackelberg game model with bank financing, green bond financing, and internal factoring financing. We incorporate the embedding degree, emission reduction cost coefficient, and financing mode selection into a unified analysis framework. The research findings are as follows: (1) There is a significant positive linear relationship between supply chain profit and the embedding degree. In contrast, the profit of ESCOs shows an inverted “U-shaped” change trend. Moreover, there is a sustainable cooperation threshold for each of the three financing modes. (2) Green bond financing can significantly increase the overall emission reduction rate of the industrial supply chain in high-embedding-degree scenarios. However, due to emission reduction investment cost pressure, ESCOs tend to choose bank financing. (3) The dynamic change of the emission reduction investment cost coefficient will trigger a reversal effect on the financing preferences of the supply chain and ESCOs. This study unveils the internal mechanism of multi-party decision-making in the low-carbon industrial supply chain and is supported by cross-country institutional evidence and comparative case-based analysis, providing a scientific basis and engineering design guidance for optimizing ESCO financing strategies, crafting incentive contracts, and enhancing government subsidy policies.

Suggested Citation

  • Liurui Deng & Lingling Jiang & Shunli Gan, 2026. "Dual-Leverage Effects of Embeddedness and Emission Costs on ESCO Financing: Engineering-Driven Design and Dynamic Decision-Making in Low-Carbon Supply Chains," Mathematics, MDPI, vol. 14(3), pages 1-65, February.
  • Handle: RePEc:gam:jmathe:v:14:y:2026:i:3:p:522-:d:1853993
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/14/3/522/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2227-7390/14/3/522/
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jmathe:v:14:y:2026:i:3:p:522-:d:1853993. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.