Partnership Establishment And Investment Optimization Strategies Of Low-carbon Supply Chain

A sharp increase in the amount of fossil fuels human have used has led to disastrousconsequences in the ecological environment, such as global warming and extreme weather. Withlow power consumption, low emissions and pollution as the symbol of low-carbon economy, theconcept of sustainable development is increasingly becoming the guideline for countries todevelop regulatory, and the low-carbon economy is becoming the focus of worldwide attention,and also bring a new challenge on supply chain management. In order to obtain competitivenessinitiative in future, it is the inevitable choice for our supply chain enterprises to take a low-carbondevelopment path. Given the current academic research and business practice in low-carbonsupply chain management is still in their infancy, and the literature on the investmentdecision-making mechanisms, the relationship coordinating between members and other relatedaspects is very rare, based on real needs, existing research results and practical experience arelearned, and game theory, incentive theory combined with real options and optimal control theoryare used in the paper. The scenario assumption is set as carbon emissions cap and trade andconsumer have preferences to low-carbon products. The two-level supply chain consisting of onemanufacturer and one retailer as the research subjects, while the two markets as the carbonemission rights trading market and the low-carbon product market are examined, the paper focuseson how supply chain to build partnership in low-carbon investment, and the collaborativestrategies how investment costs and benefits are shared among member companies, and theincentives how to improve supply chain low-carbon investment and low carbon productspromotional and decision optimization strategy of low-carbon investment in supply chain whileconsidering the uncertainty. According to the research ideas, the main contents of this articleinvolves the four parts as followed:(1) This paper has investigated the theoretical system of low-carbon investment decisions inthe supply chain under carbon cap and trade policy. Influence of carbon cap and trade policies onsupply chain corporate investment and operation, the difference between the supply chainenterprises and competitive partnerships abatement efficiency Game relationship are analyzed, thetheoretical decision framework of carbon investment in supply chain is established. And with thecurrent status of research and practical needs, the necessity and urgency of the research work arenoted. (2) This paper has investigated the partnership of low-carbon investment in supply chain. Byanalyzing the characteristics of low-carbon partnerships and their implications for carboninvestment in supply chain, the principle to select a strategic low-carbon partner and cooperationstrategy are proposed. And a low-carbon partners evaluation system is built based on the fivecriteria as business intelligence, products and services, business operations, environmentalprotection and low-carbon and ability to cooperate. Then evaluation and selection model based onentropy TOPSIS is established. An example is calculated to verify the effectiveness andpracticality of the method.(3) This paper has explored the incentives and collaborative decision-making strategies oflow-carbon investment in supply chain. Contract as the main mean of coordination,low-carboninvestments in retailer leading and manufacturer leading supply chains are studied, low-carboninvestment decentralized decision-making and collaborative decision-making game model areconstructed in carbon trading environment and game equilibrium derivation is obtained. Andcollaborative policy are achieved and incentive mechanisms are designed in different scenarios.The manufacturer wholesale pricing strategy as well as Rubinstein bargaining model-basedrevenue sharing contract are established to achieve Pareto optimal allocation of low-carboninvestment residual income and coordination of the supply chain.(4) This paper has explored optimization strategy of low-carbon investment decisions insupply chain under uncertainty. The options game characteristic that the low-carbon investment insupply chain has under carbon trading environment analyzed. By using relevant knowledge of realoptions and game theory，a typical options game theory model, the basic decision model of carboninvestment in supply chain considering the uncertainty, the options game model consideringcompetition between companies within the supply chain, and the low-carbon investment optionsgame model considering competition between supply chains are established and their investmentvalue, the investment threshold and equilibrium strategies are analyzed.The main innovation of this paper are listed as the following: Firstly, the concept of jointdecision-making in "two markets"-carbon trading market and low-carbon products market facedby low-carbon investment in supply chain is proposed; Secondly, based on Game Theory thecollaborative decision-making problems of carbon investment in leading supply chain are studied,and the decision models of the cooperation and the non-cooperative game of low-carboninvestment in supply chain are established; Thirdly, for issues of low-emission investment andproduct promotion investment in leading supply chain, incentives and optimization strategies aregiven; Finally, research is carried out to a variety of competition of supply chains underuncertainty. The combination of real options and game theory is applied to low-carbon investmentopportunity research and the validity of the method is proved through numerical examples.