Emissions reduction and pricing of supply chain under cap-and-trade and subsidy mechanisms.

ABSTRACT: This paper explored how the government provides low-carbon subsidies for the manufacturers, retailers, and consumers in a secondary supply chain under cap-and-trade scheme. We calculated the best prices, emissions reductions, and the demands for common and low-carbon products when subsidizing each of the abovementioned market players. In particular, a comparative analysis of their equilibrium outcomes was made thereafter. The MATLAB simulation found that the optimal emissions reductions under the three subsidy modes were even and positively correlated to low-carbon subsidies, which, however, negatively correlated to the prices of both product types. Higher subsidies drove up demand for low-carbon products and dragged down that for common goods. But the prices of these products maintained t

SUBMITTER: Miao W 

PROVIDER: S-EPMC8975140 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature