Internal incentives for carbon emission reduction in a capital-constrained supply chain: A financial perspective.

ABSTRACT: Capital constraints hinder enterprises' carbon reduction efforts and affect the sustainability of the supply chain. To alleviate this limitation, the core enterprise considers offering two financial-based carbon reduction incentive mechanisms: cost-sharing mechanism (CS) and preferential financing mechanism (PF). In a supply chain with the dual sensitivity of market demand to price and carbon reduction, we model each incentive mechanism, discussing their impact, value, and selection strategies. The results show that neither party under CS pursues an excessively high share ratio. Only a below-threshold sharing ratio can promote the supplier's carbon reduction behavior and improve efficiency for both parties. Conversely, PF has a stable incentive effect on the supplier's carbon reduction beh

SUBMITTER: Huang X 

PROVIDER: S-EPMC10325093 | biostudies-literature | 2023

REPOSITORIES: biostudies-literature