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A differential game approach to the low-carbon chains considering the role of shareholding

Author

Listed:
  • Song Wang

    (Xinyang Normal University)

  • Dongliang Zhu

    (Xinyang Normal University)

  • Chang Liu

    (Xinyang Normal University)

  • Yaru Li

    (Xinyang Normal University)

Abstract

Sustainable development necessitates the selection of low-carbon products. As a result, it is critical to create a supply chain that appeals to customers. This study looks into secondary supply networks that want to boost the sale of low-carbon goods and the legitimacy of the supply chain. We introduce shareholding and differential game techniques to the supply chain model to ascertain the ideal sales volume and the excellent supply chain reputation under various scenarios. Finally, the model is validated using numerical simulations and case study. The research results show that: (1) The efforts made by suppliers play a significant role in stabilizing the credibility of the supply chain, although it comes at the expense of increased costs. (2) Retailers' increased efforts contribute to the realization of value in the low-carbon supply chain, leading to enhanced profitability in the supply chain. (3) In a unidirectional shareholding structure, the costs and efforts increase as the shareholders' shareholding ratio grows increases. (4) In a cross-shareholding structure, the cost-sharing between suppliers and retailers is more balanced, and a smaller shareholding ratio is required to achieve the same enhancement effect. The results provide ideas for promoting and selling low-carbon products.

Suggested Citation

  • Song Wang & Dongliang Zhu & Chang Liu & Yaru Li, 2024. "A differential game approach to the low-carbon chains considering the role of shareholding," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(12), pages 31577-31600, December.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:12:d:10.1007_s10668-024-04538-0
    DOI: 10.1007/s10668-024-04538-0
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    References listed on IDEAS

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