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From the same journal

Pricing and low-carbon investment decisions in an emission dependent supply chain under a carbon labelling scheme

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Author(s)

  • Yonghong Cheng
  • Hui Sun
  • Fu Jia
  • S. C. Lenny Koh

Department/unit(s)

Publication details

JournalSustainability
DateAccepted/In press - 16 Apr 2018
DatePublished (current) - 18 Apr 2018
Issue number4
Volume10
Number of pages17
Pages (from-to)1-17
Original languageEnglish

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.

Bibliographical note

© 2018 by the authors.

    Research areas

  • Carbon labelling scheme, Consumer environmental awareness, Game theory, Product carbon footprint (PCF), Supply chain

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