The Production And Emission Reduction Decision Of Supply Chain Enterprises Under Cap-and-trade Policy

With the development of industrial technology,the amount of the burning of fossil fuels is so large that greenhouse gas emissions increase dramatically.The global temperatures and sea levels rise,which brings a series of disasters to the production and life to people around the world.All countries are taking steps to cope with the climate change.As a country with the largest emission of carbon,China takes the main responsibility of emission reduction.In December 2017,the launch of the national carbon trading market shows the determination and action of China's emission reduction.In the modern market competition,enterprises are no longer a single unit.They are related to their upstream and downstream enterprises and compose a supply chain.Varieties of enterprises that depend on the carbon emissions are attached to this supply chain,which makes the decision-making of the supply chain more complex according to the requirement of emission reduction of China.The decision-making goal changed from pure purpose of making profit into the dual goal of making profit and emission reduction.This paper studied on the impact of the government emission reduction policy on supply chain after the input of emission reduction for enterprises.Firstly,this paper studies on the enterprises' supply chain without emission reduction target under the cap-and-trade policy.The study found that the supply chain can make more profits with a centralized decision-making than a decentralized decision making.And the product price is relatively cheaper,and the sales volume is larger.Secondly,the paper studies on the impact of consumer preference for low carbon product on the demand of product according to the policy of cap-and-trade policy and cost of emission reduction of the supply chain.The result shows that the total profit of supply chain under the centralized decision making is larger.When the wholesale price meets certain conditions,enterprises can the maximum profit under the centralized decision making than decentralized decision making,which makes enterprises achieve the goal of win-win.On one hand the investment of emission reduction costs can reduce the carbon emission of unit products and achieve the goal of emission reduction.On the other hand,it can improve the profit of each node enterprise and the total profit of the supply chain and realize the optimization of supply chain decision.Finally,we collected some data of the relevant enterprises and carbon trading market and simplified them.Thus,a set of the closest data to the operation of the original supply chain obtained through a numeral case.Through numerical simulation,it is found that the main factors that affect the decision-making of the supply chain include carbon quota and carbon trading price.Change of the carbon quota is the main affect the manufacturer and the total profits of supply chain.The price of carbon trading affects all aspects of the decision-making of supply chain,including production,retail prices of products,product emissions,and ultimately profits and so on.According to the analysis,this paper also gets some important conclusion.Under the government's cap-and-trade policy,the supply chain can realize the improvement of profit by investing in the cost of emission reduction.It can also shape the environmental image of the enterprise and attract more consumers.Moreover,the enterprises in the supply chain should aim at maximizing the overall benefit and adopt the centralized decision-making mode to formulate the optimal production decision.