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.

    References listed on IDEAS

    as
    1. Yang Yang & Guanxin Yao, 2023. "Fresh keeping decision and coordination of fresh agricultural products supply chain under carbon cap-and-trade," PLOS ONE, Public Library of Science, vol. 18(4), pages 1-17, April.
    2. Zhi-Hua Hu & Shu-Wen Wang, 2022. "An Evolutionary Game Model Between Governments and Manufacturers Considering Carbon Taxes, Subsidies, and Consumers’ Low-Carbon Preference," Dynamic Games and Applications, Springer, vol. 12(2), pages 513-551, June.
    3. Liangjie Xia & Tingting Guo & Juanjuan Qin & Xiaohang Yue & Ning Zhu, 2018. "Carbon emission reduction and pricing policies of a supply chain considering reciprocal preferences in cap-and-trade system," Annals of Operations Research, Springer, vol. 268(1), pages 149-175, September.
    4. Xu, Xiaoping & He, Ping & Xu, Hao & Zhang, Quanpeng, 2017. "Supply chain coordination with green technology under cap-and-trade regulation," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 433-442.
    5. Dan Wu & Yuxiang Yang, 2020. "The Low-Carbon Supply Chain Coordination Problem with Consumers’ Low-Carbon Preference," Sustainability, MDPI, vol. 12(9), pages 1-15, April.
    6. Guan, Zhimin & Ye, Tong & Yin, Rui, 2020. "Channel coordination under Nash bargaining fairness concerns in differential games of goodwill accumulation," European Journal of Operational Research, Elsevier, vol. 285(3), pages 916-930.
    7. Zhuohui Yu & Qingning Lin & Changli Huang, 2022. "Re-Measurement of Agriculture Green Total Factor Productivity in China from a Carbon Sink Perspective," Agriculture, MDPI, vol. 12(12), pages 1-26, November.
    8. Junmin Wei & Manhong Shen, 2022. "Analysis of the Efficiency of Forest Carbon Sinks and Its Influencing Factors—Evidence from China," Sustainability, MDPI, vol. 14(18), pages 1-17, September.
    9. Yingying Zhang & Yi Chai & Le Ma, 2021. "Research on Multi-Echelon Inventory Optimization for Fresh Products in Supply Chains," Sustainability, MDPI, vol. 13(11), pages 1-15, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sina Abbasi & Babek Erdebilli, 2023. "Green Closed-Loop Supply Chain Networks’ Response to Various Carbon Policies during COVID-19," Sustainability, MDPI, vol. 15(4), pages 1-30, February.
    2. Xu, Song & Fang, Lei, 2020. "Partial credit guarantee and trade credit in an emission-dependent supply chain with capital constraint," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 135(C).
    3. Fakhrabadi, Mahnaz & Sandal, Leif K., 2024. "A Distributional Robust Analysis of Buyback and Cap-and-Trade Policies," Discussion Papers 2024/5, Norwegian School of Economics, Department of Business and Management Science.
    4. Longfei He & Baiyun Yuan & Junsong Bian & Kin Keung Lai, 2023. "Differential game theoretic analysis of the dynamic emission abatement in low-carbon supply chains," Annals of Operations Research, Springer, vol. 324(1), pages 355-393, May.
    5. Naiqi Liu & Wansheng Tang & Yanfei Lan & Huili Pei, 2024. "Pricing and carbon reduction decisions for a new uncertain dual-channel supply chain under cap-and-trade regulation," Fuzzy Optimization and Decision Making, Springer, vol. 23(3), pages 415-448, September.
    6. Hanbo Wu & Yaxin Sun & Yutong Su & Ming Chen & Hongxia Zhao & Qi Li, 2022. "Which Is the Best Supply Chain Policy: Carbon Tax, or a Low-Carbon Subsidy?," Sustainability, MDPI, vol. 14(10), pages 1-20, May.
    7. Changhong Li & Jiani Gao & Jiaqi Guo & Jialuo Wang, 2022. "Low-Carbon Supply Chain Decisions Considering Carbon Emissions Right Pledge Financing in Different Power Structures," Energies, MDPI, vol. 15(15), pages 1-22, August.
    8. Wen Jiang & Li Yuan & Lanjun Wu & Shiyue Guo, 2019. "Carbon emission reduction and profit distribution mechanism of construction supply chain with fairness concern and cap-and-trade," PLOS ONE, Public Library of Science, vol. 14(10), pages 1-23, October.
    9. Cao, Kaiying & Guo, Qiang & Xu, Yuqiu, 2023. "Information sharing and carbon reduction strategies with extreme weather in the platform economy," International Journal of Production Economics, Elsevier, vol. 255(C).
    10. Junsong Bian & Xiaolong Guo, 2022. "Policy analysis for emission-reduction with green technology investment in manufacturing," Annals of Operations Research, Springer, vol. 316(1), pages 5-32, September.
    11. Dou, Guowei & Wei, Kun & Sun, Tingting & Ma, Lijun, 2024. "Blockchain technology adoption in a supply chain: Channel leaderships and environmental implications," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 192(C).
    12. Yuxiang Zhang & Deqing Tan & Zhi Liu, 2019. "Leasing or Selling? Durable Goods Manufacturer Marketing Model Selection under a Mixed Carbon Trading-and-Tax Policy Scenario," IJERPH, MDPI, vol. 16(2), pages 1-29, January.
    13. Hongfang Qiao & Xiaowei Lin & Xideng Zhou & Minglin Jiang, 2022. "Research on Joint Decision-Making of Timely Delivery, Product Quality and Marketing in Supply Chain Based on Differential Game," Sustainability, MDPI, vol. 14(17), pages 1-20, August.
    14. Weisheng Deng & Lu Liu, 2019. "Comparison of Carbon Emission Reduction Modes: Impacts of Capital Constraint and Risk Aversion," Sustainability, MDPI, vol. 11(6), pages 1-30, March.
    15. Weihao Wang & Deqing Ma & Jinsong Hu, 2023. "Study of Carbon Reduction and Marketing Decisions with the Envisioning of a Favorable Event under Cap-and-Trade Regulation," IJERPH, MDPI, vol. 20(5), pages 1-27, March.
    16. Yexia Zhang & Wei Chen & Weide Chun, 2025. "Research status and trend prospects of the carbon cap-and-trade mechanism," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(2), pages 5097-5130, February.
    17. Yue-Jun Zhang & Ya-Fang Sun & Bao-Feng Huo, 2023. "The optimal product pricing and carbon emissions reduction profit allocation of CET-covered enterprises in the cooperative supply chain," Annals of Operations Research, Springer, vol. 329(1), pages 871-899, October.
    18. Zhu, Xiaoxi & Chiong, Raymond & Wang, Miaomiao & Liu, Kai & Ren, Minglun, 2021. "Is carbon regulation better than cash subsidy? The case of new energy vehicles," Transportation Research Part A: Policy and Practice, Elsevier, vol. 146(C), pages 170-192.
    19. Yanting Huang & Ying Lu, 2024. "Coordination mechanisms of closed-loop supply chain under cap-and-trade policy," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(1), pages 1341-1369, January.
    20. Yaxin Wang & Haoyu Wen & ZhongQuan Hu & Yuntao Zhang, 2023. "Collaborative Innovation Strategy of Supply Chain in the Context of MCU Domestic Substitution : A Differential Game Analysis," Computational Economics, Springer;Society for Computational Economics, vol. 61(3), pages 1039-1074, March.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.