How cross shareholding affect supply chain emission reduction decision-making under the carbon tax policy

Climate issues have become a global hot topic. At the same time, driven by the "dual carbon" goal, China has entered the fast lane of energy conservation and emission reduction, which requires enterprises to reduce CO2 emissions during product production to enhance market competitiveness. In this context, this paper studies the influence cross shareholding on the emission reduction decisions of supply chain members in a supply chain consisting of a manufacturer and a retailer under the carbon tax policy. The study shows that cross shareholding can improve the level of supply chain emission reduction and the supply chain members’ profit, and there will be no phenomenon of retailers "free riding". In addition, carbon tax can promote emission reduction and profit growth of supply chain members within a reasonable range.