Pricing Model Of Low-carbon Supply Chain Based On The Carbon Tax

With the development of low-carbon economy, more and more people pay attention to the low-carbon emissions. On the background of low-carbon supply chain management, consumer preferences andcarbon tax policy have become an important factor in the supply chain pricing. The leading factor of demand function has been changed fromproduct prices only to product prices and carbon emissions of manufacturer in the supply chainpricing decisions. This paper summarizes the connotation,research methods, research status of low carbon supply chain, and as well as expounded how basic economic theory research resultedin carbon tax. In the context of policy-based carbon tax,game model to reduce supply chain carbon emissions targets has been built to study the price of low carbon supply chain, the relationship between demand and profits of government and enterprises,which provides for the development of new theory and practical guidance of low-carbon supply chain basis. The main jobs are described in detail as follows.According to the secondary supply chain composed by a manufacturer and a retailer, this paper built the non-cooperative game theory and cooperative game theory under complete information symmetry leading by manufacturer. This paper respectively discussed supply chain management game theory with or without carbon tax system. Through numerical simulation analysis under four scenarios in which the impacts resulted from low-carbon awareness of consumers and carbon tax to optimal pricing for the supply chain, optimal carbon emissions and total profits. The results showed that with the strength of consumer low-carbon awareness, the retailing price tended to decrease in four scenarios. The retailing price of non-cooperative game theory was higher than the retailing price of cooperative game theory with the situation of no carbon tax and carbon tax. Low-carbon awareness of consumer had a negative relationship with total profits of supply chain. The profits of cooperative game theory were higher than the profits of non-cooperative game theory. With no carbon tax, the profits of cooperative game theory were higher than the profits of non-cooperative game theory. The profits of cooperative game were higher than the profits of non-cooperative game when carbon tax was lower; the profits of cooperative game were lower than the profits of non-cooperative game when carbon tax was higher.Low carbon environmental awareness of consumers has been taken account into the study of consumer preferences of low-carbon supply chain to study for pricing and profits between the manufacturers and retailers in secondary supply chain.Manufacturers adopt low-carbon technology to implement the reduction of carbon emissions in the supply chain.A game modelleading by manufacturer has been established for the study of consumer awareness of low-carbon supply chain pricing, lower carbon emissions reduction scenarios and the overall impact on profits. The results showed that carbon emission when consumers have low-carbon awarenessis lower than the carbon emissionswhen consumers have no awareness of low-carbon.’The low-carbon awareness of consumershelps to improve the profits of supply chain and to promptmanufacturers to achieve the goal of low-carbon production.In the case of complete information symmetry, a Stackelberg game model leading by the government was proposed, which was based on the green degree of the products. How the decision of manufacturing companies,the utility of consumers and total social welfare changed after carbon tax policy were obtained. Through numerical simulation analysis, it showed the impact of the carbon tax game model for optimal pricing of the both products, the optimal production capacity and overall social welfare. The results presented that the retailing price of both products increase as the increase of carbon tax. The optimal production of ordinary products was reduced with the increase of the carbon tax, but the optimal production of low-carbon products in the same situation. The total welfare was reduced as the carbon tax increased.