Study On Pricing And Carbon Reducing Strategy Of Supply Chain Under Cap And Trade Mechanism

Greenhouse Effect is obviously affecting the environment."Low Carbon Economy"quickly becomes a new concept of global concern. Carbon Emission Cap and Tradeand other low mechanisms are proposed. In the face of low carbon policy, the supplychain enterprises should consider original pricing in a new way and take carbonreducing into considerIn the carbon cap and trade (CAT for short) mechanism, from the view of supplychain, researching on pricing and carbon reduction strategy needs to pay attention tothe following questions: first, the problem of constructing supply chain under CATmechanism. Rights of carbon emissions will be seen as a product which can be tradedin the carbon trading market. Second, the problem of pricing strategy under CATmechanism. Due to the high emission of high yield to bring carbon dioxide, the CATmechanism of supply chain enterprise pricing strategy needs to weigh the total salesand carbon emissions, avoid high carbon trading expenses. Third, carbon reductionstrategy in supply chain enterprises under CAT mechanism. The supply chainenterprises are different for carbon emission pressure. Therefore, there are three kindsof carbon reduction model in three echelon supply chain: no reduction throughoutsupply chain (N mode), the manufacturer independent reduction (M mode) and themanufacturer and supplier joint reduction (MS mode). We need to analyze thedecentralized decision of the supply chain enterprises for the three emission reductionmode preference. Formulate the optimal reduction level in supply chain under themode of MS will be the second level of emission reduction decisions. Fourth, thecoordination problem of carbon reduction strategy based on contract.To solve the above problems, this paper uses the theory of supply chain method,measures of the carbon footprint, game theory. The main contents and conclusions areas follows:(I) the CAT mechanism is introduced and the three level supply chain includesupplier, manufacturer, retailer is constructed. Considering the supply chainenterprises carbon emission reduction demands, three kinds of emission reductionmode is put forward.(II) After analyzing pricing and reduction process, a pricing and carbon reducingstrategy model considering the consumer impact on preferences is built. Using themethod of Stackelberg Model, the optimal pricing and carbon reducing strategies areobtained by comparing the supply chain enterprises maximum profits. (III) Through the sensitivity analysis of numerical simulation, the effect ofcarbon trading market and consumer preferences is observed. The cost sharingcontract for coordination in decentralized supply chain is put forward.