Improve the sustainability of supply chain: the role of carbon abatement and blockchain technology

This paper analytically explores a supply chain where a manufacturer sells products through a retail platform that can operate under either a reselling or agency selling model, corresponding to Scenarios R and A. The model incorporates consumer valuation discounts based on the platform’s retail channel and sensitivity to carbon emissions. The paper first examines the manufacturer’s investment decision in green technology to reduce carbon emissions and then analyzes the platform’s adoption of blockchain technology to disclose information about the manufacturer’s actions. The analysis shows that the manufacturer consistently prefers to invest in green technology over taking no action in both scenarios. However, the platform’s decision to adopt blockchain depends on consumer acceptance of the product: blockchain is deployed when consumer acceptance is high, and not when it is low. The study further identifies two key factors – consumer acceptance and environmental sensitivity – that critically influence the supply chain members’ choice of operational model. Specifically, as consumer acceptance of the product increases, both the manufacturer’s and platform’s preferences shift from Mode RN/RT (Reselling, No blockchain/Retail, No blockchain) to Mode RB (Reselling, Blockchain) and Mode RT (Agency, Blockchain) to Mode AB (Agency, Blockchain). Conversely, as consumer environmental sensitivity increases, preferences shift in the opposite direction, from Mode RB (Reselling, Blockchain) and Mode AB (Agency, Blockchain) to Mode RN/RT (Reselling, No blockchain) and Mode AN/AT (Agency, No blockchain). These findings highlight the interconnectedness of consumer attitudes toward sustainability and the operational decisions of supply chain members.