Considering Spillover Effect Of Investment On Supply Chain Emission Reduction Strategy

Global climate change has caused increasingly serious environmental problems,forcing governments to start to seek effective environmental protection programs.The government's guidance enables manufacturers to respond to environmental protection.The increasing awareness of consumer environmental protection makes the low-carbon property of products become an effective part of consumer value.Therefore,enterprises take the initiative to reduce carbon emissions in production and improve product greenness.In order to improve the competitiveness of some retail enterprises and improve the greenness of their products,they will provide investment assistance to manufacturing enterprises with excessive pressure on emission reduction.And achieve a win-win situation for supply chain enterprises through cooperation in emission reduction.There is no lack of information leakage and emission reduction technology spillover in the investment process.When there is such a spillover effect,It is bound to have some impact on the investment decision of retail enterprises.This paper presents a new problem for the research of low-carbon supply chain management.Therefore,in this paper,a two-level supply chain consisting of a manufacturer and two retailers is constructed to solve the spillover effect caused by the retailer's investment in the manufacturer on emission reduction.First of all,the supply chain decision-making on single retailer and both retailers investing in manufacturer's carbon emission reduction are studied.The results show that the two retailers' profits are directly proportional to the market share.It will always increase the profit of the two retailers if one of the retailer invests in carbon emission reduction.The profit of the retailer who doesn't invest will be directly proportional to the spillover coefficient.Nevertheless,the improvement of the two retailers' profits are inversely proportional to the market share.The profits improvement of the two retailers when they invest separately and do not invest are compared by the numerical examples.If the overflow is too large,the investment enthusiasm of retailers will be abated and the adverse selection behaviors will come out.Then,for above of the negative impact caused by spillover effect in the case of single retailer's emission reduction investment,two compensation strategies,cost allocation and marginal revenue sharing,are used to compensate the investors for the losses caused by spillover effects.Two conclusions are found in this paper,1)Cost allocation strategy will increase the investment emission reduction of the supply chain.With the improvement of emission reduction,manufacturers will raise the wholesale price of products,and the retail price will be increased accordingly.2)the marginal revenue sharing compensation strategy can only improve the emission reduction of investment under certain conditions.Furthermore,it affects the wholesale price and retail price of the products,and investors can gain the advantage of wholesale price by sharing the marginal revenue.Both compensation strategies can improve the profit of the retailers and the supply chain to a certain extent,and the profit improvement degree of the investor is greater than that of the non-investor,so as to compensate the investor's loss.If the product emission reduction level is taken as the research object,the marginal revenue sharing compensation strategy is better than the cost allocation compensation strategy.If the retailer's profit is taken as the research object,the marginal revenue sharing compensation strategy can improve the profit of the investor better,and the cost sharing compensation strategy can create more profit for the non-investor.If the total profit of the supply chain is taken as the research object,the marginal revenue sharing compensation strategy can improve the total profit of the supply chain better when the investors account for a large scale of market demand.When investors account for a small market demand,the cost allocation compensation strategy can improve the total profit of the supply chain better.