Operation And Carbon Emission Reduction Strategy Of Closed-Loop Supply Chain Network Under Cap-and-Trade System

It has already run into a common view among industry,academia,government and consumers that reducing carbon emissions in production and consumption,because greenhouse gases have caused environmental disasters such as rising temperatures and climate change,which have seriously affected the normal life of mankind.In recent years,governments have adopted a series of carbon emission reduction policies to reduce environmental disasters.Among them,the Carbon Cap-and-Trade system has been adopted by many governments,which has attracted the attention of scholars.Meanwhile,the market environment has been changing rapidly,which leads many companies in the supply chain to trade with multiple markets in order to gain a competitive advantage.And finally,the supply chain gradually developed into a hierarchical network.Therefore,this paper studied carbon trading and supply chain network.First,a basic product trading network is established,for a closed-loop supply chain network consisting of various demand markets and two types of manufacturers that produce heterogeneous products.Secondly,on the basis of the established product trading network,a Cap-Trade system was introduced.The carbon trading center and manufacturers formed a carbon trading subnet.And the product trading subnet and the carbon trading subnet formed a closed-loop supply chain network together.Finally,on the basis of the above model,the supplier layer is introduced into the supply chain to form a closed-loop supply chain network under the Cap-Trade system,which composed of multiple suppliers,two types of manufacturers and multiple demand markets.Not only increased the supply chain members,but also the complexity of the product trading subnet and carbon trading subnet increased.The above three models explored the company's production and carbon reduction strategy.Combined with variational inequality and complementarity theory,we have established a profit maximization model for suppliers and manufacturers,and transformed the nonlinear programming problem of maximizing profit with constraints into a variational inequality problem.Therefore,we obtained the optimal conditions for the trading price,production and carbon emission reduction strategy in the closed-loop supply chain network and further acquired the conditions that how to reach equilibrium between various decision-makers in the supply chains.The modified projection and contraction algorithm is employed for solving this model.Thus,several conclusions with certain reference value were deduced by analyzing the influence of relevant parameters on the network state.The results showed that there is consistency between enterprise profit target and government emission reduction target at some conditions.In the two-level closed-loop supply chain model under Cap-and-Trade system,the carbon trading volume of the two types of manufacturers is mostly consistent,but when the carbon quota increases to a certain extent,there may be inconsistencies;it is not feasible to set the same recovery rate for different types of manufacturers.In the three-level closed-loop supply chain model of the Cap-and-Trade system,no matter whose carbon quota increases,the profit of the suppliers will be reduced.Therefore,the setting of the government carbon quota will be more effective for the front-end enterprises in the supply chain.The research in this paper analyzed the production and carbon trading strategy of enterprises considering the competition of the closed-loop supply chain network,which enriched the carbon trading theory and expands the research scope of supply chain network.The scenes and models of carbon trading assumed in this paper have enabled us to deepen our understanding of Cap-Trade.In the background of green development,it provides certain instructions and reference for government and enterprises to achieve the goal of carbon reduction.