Studying on the impact of carbon trading on LCSC and coordination mechanism based on outsourcing manufacturing

XIA Xiqiang, ZHU Qinghua, LU Mengyuan

Systems Engineering - Theory & Practice ›› 2022, Vol. 42 ›› Issue (5) : 1290-1302.

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Systems Engineering - Theory & Practice ›› 2022, Vol. 42 ›› Issue (5) : 1290-1302. DOI: 10.12011/SETP2021-1299

Studying on the impact of carbon trading on LCSC and coordination mechanism based on outsourcing manufacturing

  • XIA Xiqiang1, ZHU Qinghua2, LU Mengyuan1
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Abstract

In order to analyze the impact of carbon trading on low-carbon supply chain (LCSC) and the coordination mechanism of LCSC based on outsourcing manufacturing. The game model involving a low-carbon product manufacturer, an ordinary product manufacturer and a retailer are respectively constructed for decentralized and centralized decision-making. Based on the optimal solution of decentralized and centralized decision-making model, firstly, the impact of carbon trading on optimal pricing of both products, sales volume, the unit outsourcing manufacturing price and profit are comparatively analyzed; Secondly, the impact of carbon trading on the environment and consumer surplus of the two products is analyzed; Finally, the coordination mechanism of LCSC is provided by the Shapley-value method. The results are as follows through the studying:1) When making decentralized decision, the low carbon product manufacturer can increase its profit through increasing the unit outsourcing manufacturing price based on the carbon trading; 2) When the ratio of environmental impact per unit of ordinary products to per unit of low-carbon products is less than 3, carbon trading can not only reduce the environmental impact of the two products, but also reduce the consumer surplus, no matter the decentralized decision or centralized decision; 3) The Shapley-value algorithm can effectively distribute the profits of low carbon supply chain members according to their contributions, avoid marginal losses and realize the coordination of LCSC.

Key words

carbon trading / outsourcing manufacturing / game theory / coordination mechanism

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XIA Xiqiang , ZHU Qinghua , LU Mengyuan. Studying on the impact of carbon trading on LCSC and coordination mechanism based on outsourcing manufacturing. Systems Engineering - Theory & Practice, 2022, 42(5): 1290-1302 https://doi.org/10.12011/SETP2021-1299

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Funding

Major Program of National Natural Science Foundation of China (72192833/72192830); Youth Foundation for Humanities and Social Sciences from the Ministry of Education of China (21YJC630140); National Center for Basic Science of National Natural Science Foundation of China (72088101)
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