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Carbon Emission Reduction and Pricing Strategies of Supply Chain under Various Demand Forecasting Scenarios

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  • Juanjuan Qin

    () (School of Business, Tianjin University of Finance and Economics, Tianjin 300222, P. R. China)

  • Liguo Ren

    () (School of Business, Tianjin University of Finance and Economics, Tianjin 300222, P. R. China)

  • Liangjie Xia

    (School of Business, Tianjin University of Finance and Economics, Tianjin 300222, P. R. China)

Abstract

This study incorporates consumer’s low carbon awareness (CLA) and demand forecasting into supply chains that adopt the cap-and-trade system. Three demand forecasting scenarios are discussed, namely, information sharing, full information sharing, and retailer-only forecasting. Strategies for pricing and reduction of equilibrium of carbon emission are derived. We also compare the decisions and profits in the three cases and present numerical analysis.

Suggested Citation

  • Juanjuan Qin & Liguo Ren & Liangjie Xia, 2017. "Carbon Emission Reduction and Pricing Strategies of Supply Chain under Various Demand Forecasting Scenarios," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(01), pages 1-27, February.
  • Handle: RePEc:wsi:apjorx:v:34:y:2017:i:01:n:s021759591740005x
    DOI: 10.1142/S021759591740005X
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    References listed on IDEAS

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