The Influence Of Supply Chain Power Structure On Low Carbon Investment Level

In recent years, because of climate change and energy shortage, low carbon economy has become a trend in economic development. In order to meet the requirements of green consumers and gain more benefits, supply chain enterprises need to do low carbon technology investment and launch low carbon products. The introduction of low carbon innovative technology will affect the production cost of suppliers and product sales. Under the uncertainty of demand in the supply chain and the complexity of the enterprise profit distribution, the decision-making difficulties of supply chain enterprises are:which supply chain power structure will be more beneficial to reduce carbon emissions and gain profits in low carbon investment, dominated by suppliers or dominated by manufacturers? And the optimal level of low carbon technology investment? The decision-making usually depends on the game behavior between the supplier and the manufacturer, and the game behavior is affected by the power structure of supply chain. This thesis tries to research the effect of different power structure of supply chain on the low carbon technology investment level and profits of supply chain enterprises.This thesis uses Stackelberg model and revenue sharing mechanism. Considering there is one manufacturer and two suppliers in a two-stage supply chain. Driven by low carbon economy policies and economic benefits,the manufacturer launches different low carbon products with differential price and differential energy consumption level. Manufacturers motivate suppliers to invest low carbon technology by the order quantity. Under the manufacturer’s green procurement strategy, suppliers invest low carbon technology. This thesis studies the effect of low carbon environmental consciousness of consumers, low carbon products substitutability (low carbon level and price) and low carbon investment marginal cost of suppliers on the game behavior of supply chain members, including low carbon investment level of suppliers, price and profits. Furthermore, this thesis analyzes the effect of different power structure of supply chain on low carbon investment level of the suppliers and profit level of supply chain enterprises.This thesis finds that, when consumers have strongest environmental awareness, and the two kinds of low carbon products are non-substitutable each other, suppliers dominated power structure has more significant effect on carbon reduction. When consumers have strongest environmental awareness, and the two kinds of low carbon products are substitutable each other perfectly, manufacturers dominated power structure has more significant effect on carbon reduction. With consumer environmental awareness or low carbon products substitutability gradually increasing, relative to suppliers dominated power structure, manufacturers dominated power structure has more and more significant effect on low carbon investment. With consumer environmental awareness gradually increasing, relative to suppliers dominated power structure, manufacturers dominated power structure has more and more significant effect on suppliers’profits. With low carbon products substitutability gradually increasing, relative to suppliers dominated power structure, manufacturers dominated power structure has more and more significant effect on manufacturers’profits.