Research On Emission Reduction Decision-Making In The Two-Stage Supply Chain Based On Market Structures

China’s cap-and-trade mechanism has already been on the road. Researching theemission reduction decision-making issue of enterprises under this scenario can be thereference for the enterprises’ behavior and government’s policy guidance. Thecompetition in the market under economic globalization is the competition betweensupply chains. So the object of this paper are supply chain enterprises, with strongpractical significance.Some previous studies on low-carbon have taken the impact of consumers’low-carbon preferences on demand into consideration, but lack of in-depth analysis ofdemand functions under low-carbon economy. In this paper, the author thoughtseriously and deemed that it was the different responses to low-carbon economy of theenterprises and consumers under different market structures that led the change indemand functions, then the profit functions change. Therefore, this paper set themarket structure as its framework to explore the low-carbon decision-making issue ofenterprises. Meanwhile, when researching supply chain problems the game behaviorbetween enterprises will be involved. So this study researched the game strategies indifferent market structures using game theory and then solved them according toappropriate methods.Finally this paper drew the optimal emission reductions per unit of product,product yields and prices under different market structures. The analytical andnumerical analyses were used to illustrate applications of the models in practicalsupply chain production and the sensitivity of significant parameters. At last, thispaper considered a new cooperation mode brought by the current low-carboneconomy–contract energy management, and the centralized decision making of thesupply chain was discussed under this new mode.The main conclusions are as follows:1. The optimal emission reduction decisionof supply chain enterprises are to make their marginal emission reduction costssimilar to the marginal costs of the corresponding emission rights in the market, thenraise certain extents according to the different market structures.2. Under the samemarket structure, the supplier has greater emission reductions per unit of product in asupplier-dominated supply chain compared the one with equal forces. But in the twosituations, the relationship between manufacture’s emission reductions per unit of product and the production yield is constant.3. In a market with competitiveness, theemission reduction of one side in the supply chain can promote the other. But in amonopoly market, they are independently of each other with no mutual influence.4.The contract energy management and centralized decision-making can promote theemission reduction efforts and profit enhancements of the supply chain enterprises,while the economy and environment benefit.