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Low-carbon supply chain optimization considering warranty period and carbon emission reduction level under cap-and-trade regulation

Author

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  • Shaojian Qu

    (Nanjing University of Information Science and Technology)

  • Hui Yang

    (University of Shanghai for Science and Technology)

  • Ying Ji

    (University of Shanghai for Science and Technology)

Abstract

Greenhouse gas emissions have gradually became an important problem hindering the sustainable development of human beings. This paper considers the carbon emissions generated by the manufacturer during the product warranty process. The impacts of cap-and-trade regulation on product warranty policy and carbon emission reduction strategy are studied. According to Stackelberg theory, two supply chain game models are established. In Model I, market demand only depends on the selling price and warranty period of the product. In Model II, the carbon emission reduction level of the product is also considered as a new important factor affecting market demand. The optimal decisions of Model I and Model II in the centralized and decentralized game structure are solved and a revenue-sharing contract is proposed to coordinate the low-carbon supply chain. According to theory analysis, the following conclusions are obtained: (1) Compared with Model I, the key decisions in Model II have better response. (2) Under all game structures, the products in the centralized scheme have higher carbon emission reduction levels and warranty periods. (3) The unit carbon trading price has a negative correlation with the carbon emission reduction level and warranty period of the product. Eventually, through a set of numerical experiments, the validity of the proposed contract is verified and sensitivity analysis on key parameters of the optimal strategies of the two models under different game policies is performed.

Suggested Citation

  • Shaojian Qu & Hui Yang & Ying Ji, 2021. "Low-carbon supply chain optimization considering warranty period and carbon emission reduction level under cap-and-trade regulation," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 18040-18067, December.
    • Handle: RePEc:spr:endesu:v:23:y:2021:i:12:d:10.1007_s10668-021-01427-8
    DOI: 10.1007/s10668-021-01427-8
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    2. Li, Chao & Yi, Yongxi & Zhang, Aoxiang & Chen, Biao, 2023. "Fuel consumption-reduction investment decisions and coordination contracts in fuel vehicle supply chains: A dynamic analysis," Energy Economics, Elsevier, vol. 125(C).
    3. Shan Lyu & Yuyu Chen & Lei Wang, 2022. "Optimal Decisions in a Multi-Party Closed-Loop Supply Chain Considering Green Marketing and Carbon Tax Policy," IJERPH, MDPI, vol. 19(15), pages 1-23, July.
    4. Mingyue Chen & Chao Zhang & Chuanming Chen & Jinsheng Li & Wenyue Cui, 2023. "Main Pathways of Carbon Reduction in Cities under the Target of Carbon Peaking: A Case Study of Nanjing, China," Sustainability, MDPI, vol. 15(11), pages 1-19, June.
    5. Fang Dong & Chengdong Shi & Weitong Yu, 2022. "Coordinated Decision-Making in Embedded Supply Chain from a Sustainable Development Perspective," Sustainability, MDPI, vol. 15(1), pages 1-19, December.
    6. Chauhan, Chetna & Kaur, Puneet & Arrawatia, Rakesh & Ractham, Peter & Dhir, Amandeep, 2022. "Supply chain collaboration and sustainable development goals (SDGs). Teamwork makes achieving SDGs dream work," Journal of Business Research, Elsevier, vol. 147(C), pages 290-307.
    7. Qiang Du & Hongyu Zhu & Youdan Huang & Qiaoyu Pang & Jinzhao Shi, 2024. "Profit allocation of carbon emission reduction in the construction supply chain," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(8), pages 20531-20560, August.
    8. Haiying Zhou & Wenjing Zhang, 2022. "Choice of Emission Control Technology in Port Areas with Customers’ Low-Carbon Preference," Sustainability, MDPI, vol. 14(21), pages 1-19, October.
    9. Md. Anisul Islam & Yuvraj Gajpal, 2021. "Optimization of Conventional and Green Vehicles Composition under Carbon Emission Cap," Sustainability, MDPI, vol. 13(12), pages 1-20, June.
    10. Jianteng Xu & Peng Wang & Qi Xu, 2022. "Impact of Information Asymmetry on the Operation of Green Closed-Loop Supply Chain under Government Regulation," Sustainability, MDPI, vol. 14(13), pages 1-18, June.
    11. Lia Nersesian & Ashkan Hafezalkotob & Raziyeh Reza-Gharehbagh, 2023. "Alternative governmental carbon policies on populations of green and non-green supply chains in a competitive market," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(5), pages 4139-4172, May.
    12. Shiyue Zhang & Alan R. Collins & Xiaoli L. Etienne & Rijia Ding, 2021. "The Environmental Effects of International Trade in China: Measuring the Mediating Effects of Technology Spillovers of Import Trade on Industrial Air Pollution," Sustainability, MDPI, vol. 13(12), pages 1-25, June.
    13. Guangxing Wei & Linrong Zhou & Binta Bary, 2022. "Operational Decision and Sustainability of Green Agricultural Supply Chain with Consumer-Oriented Altruism," Sustainability, MDPI, vol. 14(19), pages 1-25, September.

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