Research On Carbon Emission Reductions And Financing Strategy For Capital-constrained Supply Chain Under Cap-and-trade Regulations

Climate warming is a serious challenge that mankind are facing today,and carbon emission reduction is the key to prevent global warming.In recent years,China has placed the construction of ecological civilization in a prominent position,striving to follow a green,low-carbon and cyclical development path that is in line with China's national conditions.It has taken a series of measures,such as optimizing industrial structure,saving energy and improving energy efficiency,developing non-fossil energy,increasing forest carbon sinks and building a national carbon emission trading market,and achieved positive results.As a market mechanism,cap-and-trade regulations can effectively reduce overall emission reduction costs and achieve the goal of controlling greenhouse gas emissions,and effectively promote technological progress and industrial structure upgrading.Globally,the carbon market is playing an increasingly important role as an important means of promoting global climate governance.In December 2017,China officially launched the national carbon emissions trading system,with the power generation industry as a breakthrough to build a national carbon emissions trading market in stages.Moreover,with the improvement of consumers' low-carbon awareness,most consumers are more willing to buy low-carbon products.Facing the changes of national low-carbon policy and market demand,manufacturers should reduce carbon emissions in the production process,thus generating carbon emission reduction costs.In reality,the manufacturer in the supply chain may face capital constraints,and the manufacturer will make non-optimal decisions because of capital constraints.This paper discusses how a capital-constrained manufacturer determines its optimal production quantity and carbon emission reductions considering the two cases of the certain demand and the uncertain demand under cap-and-trade regulations,when given the options of no financing,bank financing,and supplier/mixed mode financing.Then,according to the manufacturer's different initial capital and financing interest rates,the conclusion of the manufacturer's optimal financing mode selection based on the period-end profit maximization is drawn.And this paper further explores which financing mode can produce the maximum carbon emission reduction per unit product.Based on the two situations of demand certainty and uncertainty,the common conclusions are as follows:Firstly,the optimal output and carbon emission reduction per unit product under the three financing modes are less than their counterparts under the case that the manufacturer's initial capital is sufficient;the optimal output and carbon emission reduction per unit product under the mixed financing mode are less than the counterparts under the supplier financing mode;and whether the manufacturer's carbon emission reductions in the supplier/mixed financing modes are higher than the reductions in the bank financing mode depends on the bank's interest rate and the supplier's interest rate.Second,the optimal output,the optimal carbon emission reductions per unit product and the manufacturer's optimal profit under the three financing modes all decrease with the increase of bank lending rate and supplier's interest rate.Third,if the manufacturer has a shortage of capital,no matter how high the bank interest rate is,he will choose bank financing;if the manufacturer has a amount of shorter capital,he will choose bank financing when the bank's interest rate is relatively low and supplier financing when the bank's interest rate is relatively high;if the manufacturer has a amount of much shorter capital,he will choose bank financing when the supplier's interest rate exceeds the bank's interest rate,otherwise he will choose mixed financing.Fourthly,in the mixed financing mode,the manufacturer's carbon emission cap will not affect the manufacturer's optimal output and the unit product's optimal carbon emission reductions,but the more the carbon emission cap,the higher the optimal profit;when the manufacturer's carbon emission cap is greater,the higher the carbon trading price will make the higher period-end profit and when the carbon emission cap is less,the higher carbon trading price will make lower profit;when manufacturer's carbon emission reduction efficiency increases,manufacturer's optimal output,unit product emission reduction and profit will both increase.In particular,in this paper,the influence of stochastic demand fluctuation interval on manufacturer's decisions in supply chain under uncertain demand is discussed:Fifthly,in the case of uncertain demand,stochastic demand affects the manufacturer's optimal decisions and profits.When the manufacturer is clean,with the increase of fluctuation range of stochastic demand,the manufacturer's optimal carbon emission reduction and optimal output are increased;when the manufacturer is polluted,with the increase of fluctuation range of stochastic demand,the manufacturer's optimal carbon emission reduction and optimal output are reduced.The influence of stochastic demand on manufacturer's optimal profit depends on the comparison between inventory factor and fluctuation range of stochastic demand.