Abstract
A low-carbon policy attracts the interests of businesses, consumers, and policy makers. The purpose of this paper is to investigate how a carbon labelling scheme could be integrated into operational decision-making for manufacturers and retailers. Three game theoretic models of a supply chain with one manufacturer and one retailer are built to investigate a manufacturer and retailer's pricing and investment decision for products with different initial carbon footprints considering consumer environmental awareness. Through a systematic comparison and numerical analysis, the results show that a carbon labelling scheme can significantly reduce the overall carbon emission supply chain and have an initially negative impact on the manufacturer and retailer's profits. However, in the medium-long run, manufacturers and retailers could yet achieve profitability through continuously investing in low-carbon technology.
| Original language | English |
|---|---|
| Article number | 1238 |
| Pages (from-to) | 1-17 |
| Number of pages | 17 |
| Journal | Sustainability |
| Volume | 10 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 18 Apr 2018 |
Bibliographical note
© 2018 by the authors.Keywords
- Carbon labelling scheme
- Consumer environmental awareness
- Game theory
- Product carbon footprint (PCF)
- Supply chain