Supply Chain Cooperation On Carbon Reduction Under Cap And Trade

For low carbon supply chain management theory,the most important issue is: to achieve Pareto optimization throughout the whole supply chain,which makes the output,profit,cost and other aspects all better.Because of the difference in marginal cost of enterprise implementing the emission reduction,cooperation in supply chain is necessary.Therefore,the cooperation has been widely concerned as an important approach for emission reduction in both practice and academic field.Considering the importance of Cap and Trade in China's low carbon policy system,this paper chooses Cap and Trade as the research background,three key problem has been analyzed:(1)Is the cooperation able to reduce carbon emission while increasing the profit;(2)When the Pareto optimization can be achieved,how the cooperation can be formed;(3)when the situation is not fit for cooperation,how Cap and Trade can change the situation to make cooperation possible.According to the structure of supply chain,the cooperation within supply chain could be divided into two kinds,the vertical cooperation between Upstream and Downstream Firms and the horizental cooperation between the firms which provid same product or sevice.Because of the differences between the vertical cooperation and the horizental cooperation,the mathematic model and the analyzing methods must be adopted respectively.Therefore,this thesis will analyze the three key issues by two main lines,which are vertical emission reduction cooperation and horizontal emission reduction cooperation.First,under the Cap and Trade a two echelon supply chain system with one supplier and multiple retailers is considered.The horizontal emission reduction cooperation model of retailers is established.By contrast with the situation of non-cooperation,the horizontal cooperation can help the whole supply chain to realize the Pareto optimization in carbon emission and cost.Subsequently,the sufficient conditions for the formation of horizontal cooperation are analyzed and solved by the method of cooperative game.Furthermore the impact of Cap and Trade policy on the cooperation conditions,carbon emission and cost is analyzed.Finally,based on the completion of the three issues,considering that the allocation problem is the key problem of cooperative game,a method based on the DEA and Sharply value is proposed,and a numerical example is also given.Secondly,under Cap and Trade two echelon supply chain with one supplier and one retailer is considered.A differential game model of supplier and retailer verical emission reduction cooperation is established and solved by HJB equation.The results show that: the vertical emission reduction cooperation can achieve the Pareto optimization of carbon emissions,and the conditions of Pareto optimization and cooperation are derived.Subsequently the impact of Cap and Trade policy is analyzed.Finally,based on solving three key problems,how enterprises choose low carbon technology to achieve emission reduction while profit improved is further analyzed.The main innovation spot is:(1)For the horizontal emission reduction cooperation,the cooperative game method is adopted to solve the sufficient conditions for the emission reduction cooperation,and a allocation method based on the DEA and Sharply value is put forward to achieve the balance between the equity and efficiency.This not only enriches the theory of low carbon supply chain management,but also provides a theoretical reference for the practice of cooperation.(2)For the vertical emission reduction cooperation,the differential game method is used to obtain the optimal decision on cooperation in a certain time.Trajectory of emission and profit are also derived.This is conducive to the visual display of the dynamic development of cooperation,there is a guiding significance for the enterprise practice.