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Title The Sustainable Supply Chain Network Competition Based on Non-Cooperative Equilibrium under Carbon Emission Permits
ID_Doc 27067
Authors Cheng, PY; Zhang, GT; Sun, H
Title The Sustainable Supply Chain Network Competition Based on Non-Cooperative Equilibrium under Carbon Emission Permits
Year 2022
Published Mathematics, 10.0, 9
DOI 10.3390/math10091364
Abstract Under the background of a circular economy, this paper examines multi-tiered closed-loop supply chain network competition under carbon emission permits and discusses how stringent carbon regulations influence the network performance. We derive the governing equilibrium conditions for carbon-capped mathematical gaming models of each player and provide the equivalent variational inequality formulations, which are then solved by modified projection and contraction algorithms. The numerical examples empower us to investigate the effects of diverse carbon emission regulations (cap-and-trade regulation, mandatory cap policy, and cap-sharing scheme) on enterprises' decisions. The results reveal that the cap-sharing scheme is effective in coordinating the relationship between system profit and carbon emission abatement, while cap-and-trade regulation loses efficiency compared with the cap-sharing scheme. The government should allocate caps scientifically and encourage enterprises to adopt green production technologies, especially allowing large enterprises to share carbon quotas. This study can also contribute to the enterprises' decision-making and revenue management under different carbon emissions reduction regulations.
Author Keywords non-cooperative equilibrium; complex supply chain network; environmental policies; circular economy
Index Keywords Index Keywords
Document Type Other
Open Access Open Access
Source Science Citation Index Expanded (SCI-EXPANDED); Social Science Citation Index (SSCI)
EID WOS:000794779500001
WoS Category Mathematics
Research Area Mathematics
PDF https://www.mdpi.com/2227-7390/10/9/1364/pdf?version=1650369317
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