IDEAS home Printed from https://ideas.repec.org/a/spr/jcomop/v49y2025i5d10.1007_s10878-025-01316-0.html
   My bibliography  Save this article

The influence of carbon sink trading on carbon emission reduction in agricultural supply chains

Author

Listed:
  • Tingting Meng

    (Jiangnan University)

  • Yukun Cheng

    (Jiangnan University)

  • Xujin Pu

    (Jiangnan University)

  • Rui Li

    (Suzhou University of Science and Technology)

Abstract

As global climate change intensifies, the agricultural sector, responsible for over 30% of global greenhouse gas emissions, faces an urgent imperative to mitigate emissions and align with international climate commitments. Carbon sink trading, a market-based mechanism that incentivizes emission reductions through sequestration credits, has emerged as an important tool for accelerating carbon peaking and neutrality goals. This study investigates the influence of carbon sink trading on the strategic interactions between farmers and retailers in agricultural supply chains. Employing differential game theory, we construct three cooperative models: decentralized, Stackelberg leader-follower, and centralized, and derive equilibrium strategies for each using the Hamilton-Jacobi-Bellman framework. Through numerical simulations, we evaluate the influence of carbon sink trading on the emission reduction efforts of farmers and retailers, the extent of emission reductions in the supply chain, and the overall profits. Comparative analysis against baseline scenarios without carbon trading reveals that the integration of carbon sink markets enhances profit margins across all models and improves the level of emission reduction in the agricultural supply chain. In addition, our results show that the centralized model outperforms other configurations, followed by the Stackelberg model, with the decentralized model exhibiting the least effectiveness. These findings provide actionable insights for policymakers and supply chain managers to design carbon trading frameworks that harmonize economic incentives with ecological sustainability.

Suggested Citation

  • Tingting Meng & Yukun Cheng & Xujin Pu & Rui Li, 2025. "The influence of carbon sink trading on carbon emission reduction in agricultural supply chains," Journal of Combinatorial Optimization, Springer, vol. 49(5), pages 1-30, July.
    • Handle: RePEc:spr:jcomop:v:49:y:2025:i:5:d:10.1007_s10878-025-01316-0
    DOI: 10.1007/s10878-025-01316-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10878-025-01316-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10878-025-01316-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:spr:jcomop:v:49:y:2025:i:5:d:10.1007_s10878-025-01316-0. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.