Upstream-Downstream Joint Carbon Reduction Strategies Based on Low-Carbon Promotion.

Area of Science:

• Environmental Economics
• Supply Chain Management
• Game Theory

Background:

• Growing pressure for emissions reduction and low-carbon products necessitates strategic analysis.
• Supply chain dynamics between manufacturers and retailers significantly influence environmental strategies.
• Understanding cost-bearing impacts on emissions reduction and promotion is crucial for sustainable business models.

Purpose of the Study:

• To analyze the impact of emissions reduction efforts and low-carbon product promotion on manufacturer and retailer strategies.
• To compare emissions reduction and promotional efforts under different cost-bearing scenarios.
• To evaluate the influence of supply chain decision-making on environmental and market outcomes.

Main Methods:

• Development of a differential game model to simulate dynamic interactions.
• Comparative analysis of three scenarios: retailers bearing promotional costs, manufacturers bearing costs, and centralized decision-making.
• Evaluation of key performance indicators including emissions reduction, market demand, promotional effort, and unit retail price.

Main Results:

• Centralized decision-making yields the highest carbon emissions reduction per product unit.
• Manufacturers bearing promotional costs result in higher market demand, emissions reduction, and promotional effort compared to retailers bearing costs.
• Centralized decision-making leads to the lowest unit retail price, with higher sales volume, emissions reduction, and promotional effort.

Conclusions:

• Centralized decision-making is the most effective strategy for maximizing emissions reduction and market performance in low-carbon supply chains.
• The allocation of promotional costs significantly impacts market demand, emissions reduction efforts, and pricing strategies.
• Manufacturers incentivized to bear promotional costs can drive greater environmental and market success than retailers.