Emissions Reduction Cost-Sharing Contract through Green Innovation under Carbon Emission Constraints

Abstract:

In a supply chain which contains one manufacturer and one retailer, the manufacturer has sufficient channel power over the retailer to act as the Stackelberg leader and the demand is sensitive to the level of green innovation. We investigate the emissions reduction cost-sharing contract through green innovation under carbon emission constraints, and establish an analysis model to obtain the optimal cost-sharing proportion established by the manufacturer and the retail price established by the retailer. The results show the impact of the cost of achieving green innovation and the level of green innovation on the retailers cost-sharing proportion, the retail price and the wholesale price.

• Periodical: Key Engineering Materials (Volume 572)
• Pages: 663-667
• DOI: https://doi.org/10.4028/www.scientific.net/KEM.572.663
• Online since: September 2013
• Authors: Xi Liang, Yu Xiong
• Keywords: Carbon Emission (CE), Cost-Sharing, Emission Reduction, Green Innovation

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