Research On Carbon Emission Reduction Of Supply Chain Considering Social Preference And Information Asymmetry In The Cap-and-Trade System

Environmental pollution and degradation of ecosystem not only restrict the sustainable development of economy,but also affect the quality of human life.In order to control carbon emissions and improve the efficiency of emission reduction,National Development and Reform Commission issued the "Notice on The Pilot Work on The Development of Carbon Emissions Trading Market" in November 2011,and successfully introduced the market mechanism into the management of carbon emissions.Carbon emission trading regulation changes the cost structure of companies and gives them more flexibility in carbon emissions.Under the influence of consumer’s low-carbon awareness,the carbon footprint of a product can directly affect its market demand.Carbon emissions and carbon-reduction-related investment in one certain part of supply chain can affect the decision-making of its upstream and downstream partners.Part from this,a number of studies have showed that people are not fully rational or self-interested.They have social preference and consider their own interests as well as the interests of other partners in decision-making.Social preference has an inevitable influence on the decision-making of companies in a supply chain and changes the gambling of its upper and lower companies.In addition,the information asymmetry between the upstream and downstream companies of one supply chain also affects their decision-making.Based on these reasonable researches,this paper mainly studies the following three subjects:First,on the basis of previous literature,considering a supply chain composed of one manufacturer and two retailers,this paper studies how information asymmetric and the horizontal competition among retailers affect the decision-making of the emission reduction of manufacturer and value-added services of retailers and the profit of enterprises,and exploring the possibility and conditions of information transmission between the supply chain.Our research shows whether retailers share their information or not can affect manufacturer’s carbon emission reduction.When retailers share their cost information at the same time,manufacturer’s carbon emission reduction is the highest;Retailers who have high efficiency of value-added services are more likely to share their cost information;Manufacturers’ emission reduction rates will increase if retailers who have high efficiency of value-added service share their information.Secondly,introducing social preference factors into a supply chain which composed of one manufacturer and one retailer,this paper analyzes decision-making of subjects of a supply chain under the condition of complete information,and designs the supply chain coordination contract on social preference conditions based on the theory of incentive compatibility and side-payment contract to realize Pareto improvement.Our research shows that manufacturer’s decision of carbon reduction is associated with its social preferences and retailer’s social preferences(relationship preference and status-seeking preference).Manufacturer’s reduction rate and the relationship preference parameter are positively correlated,and its relationship with status-seeking preference is negatively correlated.Retailer’s decision(value added service level)doesn’t affected by its social preferences with manufacturer.Thirdly,this paper examines the decision-making and the operation performance of the subjects of a supply chain which composed of one manufacturer and two retailers under the situation where information asymmetry and social preference factors are included in the same time,and studies the influence of social preferences to information sharing between upstream and downstream.This paper finds that Social preference doesn’t affect the decision-making of retailers’ information sharing,but has an effect on the level of retailers’ value-added services;When the relationship preference between the retailer and manufacture is strong,the increase of manufacture’s carbon emission rate can help retailers improve the level of their value-added services.Besides,this paper finds that higher carbon trading prices and higher consumer awareness of emission reduction will promote the manufacturer’s carbon emission reduction rate,however,fierce competition will reduce manufacturers’ emission reduction rate.