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Firms' preferences for retailing formats considering one manufacturer's emission reduction investment

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  • Jinjin Liu
  • Hua Ke

Abstract

Nowadays, many countries and governments implement the cap-and-trade regulation to curb carbon emissions. This study aims to explore how the regulation affects an e-tailer's choice of retailing formats between marketplace and reseller as well as its partner's response by considering a supply chain composed of an e-tailer and a manufacturer. We also take the manufacturer's investment strategy into account and then develop four models to examine the two members' preferences for retailing formats. First, our results demonstrate that if a product's emissions in the retail process are medium (low) or the platform fee rate is relatively low (high), the e-tailer and the manufacturer both prefer marketplace (reseller) mode. Second, the e-tailer prefers to offer reseller mode for one manufacturer with a strong ability of emission reduction and offer marketplace mode otherwise; but the manufacturer's preference is opposed to the e-tailer's. Third, the manufacturer always benefits from her investment, regardless of in marketplace or reseller modes; the e-tailer's attitude towards the manufacturer's investment varies with retailing formats. Specifically, the e-tailer under reseller mode always prefers the manufacturer to invest; but under marketplace mode, he prefers the manufacturer to invest only when the latter's ability of emission reduction is weak.

Suggested Citation

  • Jinjin Liu & Hua Ke, 2021. "Firms' preferences for retailing formats considering one manufacturer's emission reduction investment," International Journal of Production Research, Taylor & Francis Journals, vol. 59(10), pages 3062-3083, May.
    • Handle: RePEc:taf:tprsxx:v:59:y:2021:i:10:p:3062-3083
    DOI: 10.1080/00207543.2020.1745314
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    Cited by:

    1. Xu, Xiaoping & Guo, Shunan & Cheng, T.C.E. & Du, Pengcheng, 2023. "The choice between the agency and reselling modes considering green technology with the cap-and-trade scheme," International Journal of Production Economics, Elsevier, vol. 260(C).
    2. Zhou, Xiaoyang & Liu, He & Li, Jialu & Zhang, Kai & Lev, Benjamin, 2023. "Channel strategies when digital platforms emerge: A systematic literature review," Omega, Elsevier, vol. 120(C).
    3. Yanyan Zheng & Jin Zhang & Mengyuan Wang & Peng Liu & Tong Shu, 2023. "Low-Carbon Manufacturing or Not? Equilibrium Decisions for Capital-Constrained News Vendors with Subsidy and Carbon Tax," Sustainability, MDPI, vol. 15(15), pages 1-23, July.

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