Coordination Of Carbon Emission Reduction In Supply Chain Considering Government Subsidies

As consumers pay more and more attention to low carbon emission reduction,the extensive development of traditional supply chain without considering the damage to the environment is being resisted by more and more people.Under the background of increasing global carbon emissions and causing global warming,more and more enterprises begin to cater to consumers' preferences for low-carbon products by innovating production technology and reducing carbon emissions.Carbon policies such as “cap-and-trade”,government subsidies,carbon tax and other policies have sprung up all over the world.We should use laws and regulations to promote low carbon emission reduction.This paper first considered the market led carbon emission reduction(carbon trading),on this basis,it also considered the combination of market led carbon emission reduction and government guidance carbon emission reduction(government subsidy).From the perspective of carbon emission reduction in supply chain,this paper studies the decision-making and optimization of low carbon supply chain under carbon quota and transaction based on game theory.And further expand to consider the situation of government subsidies.The main contents are as follows:1.the change of the economic variables of all parties in the supply chain and the value of the optimal emission reduction rate are studied when the manufacturers choose the emission reduction strategy under the “cap-and-trade” mode.The centralized decision model and decentralized decision model are constructed when manufacturers choose non emission reduction strategies.When the manufacturer chooses emission reduction strategy,three decision-making models are set up: centralized decision,decentralized decision and cost sharing contract decision.By using the backward induction method,we get the equilibrium values of the economic variables of the supply chain under five decision models and the optimal emission reduction rate of the three emission reduction models.The comparison is carried out and the relevant conclusions are drawn.Finally,the numerical simulation analysis is carried out on the carbon quota,the unit carbon trading price,the emission reduction investment coefficient,the emission reduction level and the price sensitivity coefficient,and the above conclusions and theorems are verified.2.the change of the economic variables of all parties in the supply chain and the value of the optimal reduction rate are studied when the manufacturers choose the emission reduction strategy under the “cap-and-trade” mode and government subsidy is considered.Three decision models of centralized decision,decentralized decision and cost sharing contract decision are constructed when the manufacturer chooses emission reduction strategy.By using the backward induction method,we get the equilibrium values of the economic variables and the optimal emission reduction rate of the supply chain under three decision models.And compared with the three decision-making models when the manufacturers implement the emission reduction strategy under the “cap-and-trade” policy,the relevant conclusions and theorems were obtained.Finally,the numerical simulation analysis was carried out to verify the above conclusions and theorems through the numerical simulation analysis of the cost subsidy rate and the unit carbon savings allowance.The research shows that,when the optimal reduction rate is met,not only the market can lead the supply chain to reduce the emission,but the market leding emission reduction can increase the supply chain profit.On the premise of meeting the same optimal emission reduction rate,when the market led and the government guides emission reduction,whether it is the degree of emission reduction,or the market demand and supply chain profit is obviously better than the single market led emission reduction.In the two cases,although centralized decision-making is the best decision,centralized decision requires the members of the supply chain to make decisions from the overall interests of the supply chain rather than their respective interests,which is difficult to achieve in the actual situation.In the two case,cost sharing contract decision is better than decentralized decision making,which plays a role in improving supply chain performance.