Carbon Emissions and Sustainable Supply Chains: A Stackelberg Game Analysis of Multinational Firm Relationships

Against the backdrop of global climate change and sustainable development, carbon emissions within transnational closed-loop supply chains have become a critical area of research. This paper utilizes a Stackelberg game model to analyze the relationship between a single export manufacturer and an import retailer. The study investigates the optimal solutions of the supply chain model—wholesale price, retail price, sales volume, and profit—across three consumer preference scenarios: no obvious preference, pure green preference, and pure new preference. Furthermore, this paper examines the impact of carbon emissions per unit of product on supply chain decision-making under two scenarios: with and without carbon trading. Carbon trading, which significantly increases unit costs, exerts a profound influence on the strategic decisions of both manufacturers and retailers. In addition, this paper incorporates carbon tariffs and taxes into its analysis, providing a theoretical foundation for governments and policymakers to promote sustainable production and consumption practices. The validity of the model is confirmed through numerical simulations, which reveal that under pure green and pure new preference scenarios, original equipment manufacturers (OEMs) are more inclined to invest in emissions reduction to minimize tariff costs. In contrast, under no obvious preference scenarios, OEMs are more likely to adjust product portfolios to evade carbon tariffs. This research advances the understanding of low-carbon production strategies in transnational supply chains, offering both theoretical insights and practical guidance for balancing economic and environmental objectives.

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Publication Details

Journal
Mathematics
Published
2024-12-18
DOI
https://doi.org/10.3390/math12243983
Citations
4
Primary Topic
Climate Change Policy and Economics
Type
article
Field-Weighted Citation Impact
4.52
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article

Carbon Emissions and Sustainable Supply Chains: A Stackelberg Game Analysis of Multinational Firm Relationships

Fei Xie, Meiqi Liu, Guanghui Yuan, Bo Tian et al.
4 citations
Mathematics
Climate Change Policy and Economics
4.52
article

Carbon Emissions and Sustainable Supply Chains: A Stackelberg Game Analysis of Multinational Firm Relationships

Fei Xie, Meiqi Liu, Guanghui Yuan, Bo Tian, Bin Pan
article en
4 citations

Abstract

Against the backdrop of global climate change and sustainable development, carbon emissions within transnational closed-loop supply chains have become a critical area of research. This paper utilizes a Stackelberg game model to analyze the relationship between a single export manufacturer and an import retailer. The study investigates the optimal solutions of the supply chain model—wholesale price, retail price, sales volume, and profit—across three consumer preference scenarios: no obvious preference, pure green preference, and pure new preference. Furthermore, this paper examines the impact of carbon emissions per unit of product on supply chain decision-making under two scenarios: with and without carbon trading. Carbon trading, which significantly increases unit costs, exerts a profound influence on the strategic decisions of both manufacturers and retailers. In addition, this paper incorporates carbon tariffs and taxes into its analysis, providing a theoretical foundation for governments and policymakers to promote sustainable production and consumption practices. The validity of the model is confirmed through numerical simulations, which reveal that under pure green and pure new preference scenarios, original equipment manufacturers (OEMs) are more inclined to invest in emissions reduction to minimize tariff costs. In contrast, under no obvious preference scenarios, OEMs are more likely to adjust product portfolios to evade carbon tariffs. This research advances the understanding of low-carbon production strategies in transnational supply chains, offering both theoretical insights and practical guidance for balancing economic and environmental objectives.

MathematicsVol. 12(24)
Shanghai University of Political Science and Law (CN), Shanghai University of Finance and Economics (CN)
Responsible consumption and production
Openalex Percentile: Top 5%
Climate Change Policy and Economics
4.52
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