Research On The Bi-level Supply Chain Network Equilibrium Model Considering Carbon Trading Market

Massive greenhouse gas emissions lead to global warming,causing great losses to human society and the natural environment.Chinese government departments are constantly exploring and implementing various emission reduction policies,and calling on the whole society to actively participate in energy conservation and emission reduction.Under this background,carbon emission reduction participation behavior of the supply chain of emitters will be considered in this paper.Firstly,the supply chain network system consisting of multiple manufacturers and multiple retailers without and with the participation of the carbon trading market are constructed by using the equilibrium theory and variational inequality under the mechanism of carbon emissions caps.The numerical results are displayed as follows.When the allocation of carbon emission quotas is extremely unreasonable,the existence of carbon trading market will inhibit the enthusiasm of manufacturers’ product production.When there is a proper deviation in the allocation of carbon emission quotas,the carbon trading market plays an role in solving the problem of unreasonable allocation of carbon emission quotas.When the price of carbon trade is low,carbon quota policy and carbon trading market can not encourage enterprises to actively participate in energy conservation and emission reduction activities.When the price of carbon trade is high,carbon quota policy and carbon trading will inhibit the business activities of enterprises.Secondly,government regulation is introduced into the supply chain network model with the participation of the carbon trading market,so that the government and the supply chain network with the participation of the carbon trading market constitute a bi-level programming network model.The government acts as the upper layer of the whole bi-level programming problem,while the supply chain network with the participation of the carbon trading market acts as the lower layer.Then the proportion of the carbon emission quota allocation,the government carbon emission quota and the product production and trading volume will be solved.Analyze the influence of these parameters(carbon emission reduction cost coefficient,policy mistakes cost penalty coefficient,initial carbon trading price and carbon trading price sensitivity coefficient)on government carbon quota allocation and equilibrium decision of enterprises in lower supply chain network.Specifically,when the carbon emission reduction cost coefficient and policy mistakes cost penalty coefficient is low,it is not conducive to the implementation of the enterprise energy conservation and emissions reduction,and the government should appropriately reduce the carbon emission quota.When the carbon emission reduction cost coefficient and policy mistakes cost penalty coefficient is high,it is not conducive to the economic benefits of enterprises and the development of the society,and the government should appropriately increase the carbon emission quota.When the initial carbon trading price is low,it is not conducive to the implementation of energy conservation and emission reduction.When the initial carbon trading price is high,the carbon trading market cannot play its role of coordinating the unreasonable allocation of carbon emission quota and inhibits the production of products of enterprises,which is not conducive to the development of enterprises and society.When the sensitivity coefficient of carbon trading price is high,the production of products of enterprises will decrease,which is not conducive to the development of enterprises,and the government should increase the carbon emission quota to ensure the production of products of enterprises.