Research on Cost-Sharing Contract Coordination Under Different Carbon Quota Allocation Mechanisms—Manufacturing Supply Chain Model Analysis

Against the background of carbon neutrality, the impact of carbon quota allocation mechanism on supply chain’s decision-making of emission reduction has received increasing attention. This study analyzes the optimal decision-making behavior of manufacturing supply chains under three mechanisms: completely free, complete auction and hybrid. Meanwhile, the abatement cost-sharing contract is introduced and the backward induction method is applied to solve the optimal equilibrium solution under each mechanism. Combined with numerical simulation, this study further investigates the impacts of market demand and cost-sharing coefficient changes on the system profit. The result shows that the abatement cost-sharing contract can significantly improve the level of manufacturers’ abatement and the total profit of the supply chain. Among the mechanisms analyzed, the hybrid mechanism realizes the balance between efficiency and incentives and demonstrates stronger adaptability and policy flexibility.

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Publication Details

Journal
Systems
Published
2025-09-25
DOI
https://doi.org/10.3390/systems13100841
Citations
1
Primary Topic
Sustainable Supply Chain Management
Type
article
Field-Weighted Citation Impact
2.23
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article

Research on Cost-Sharing Contract Coordination Under Different Carbon Quota Allocation Mechanisms—Manufacturing Supply Chain Model Analysis

Shilong Li, Siqi Huang
1 citations
Systems
Sustainable Supply Chain Management
2.23
article

Research on Cost-Sharing Contract Coordination Under Different Carbon Quota Allocation Mechanisms—Manufacturing Supply Chain Model Analysis

Shilong Li, Siqi Huang
article en
1 citations

Abstract

Against the background of carbon neutrality, the impact of carbon quota allocation mechanism on supply chain’s decision-making of emission reduction has received increasing attention. This study analyzes the optimal decision-making behavior of manufacturing supply chains under three mechanisms: completely free, complete auction and hybrid. Meanwhile, the abatement cost-sharing contract is introduced and the backward induction method is applied to solve the optimal equilibrium solution under each mechanism. Combined with numerical simulation, this study further investigates the impacts of market demand and cost-sharing coefficient changes on the system profit. The result shows that the abatement cost-sharing contract can significantly improve the level of manufacturers’ abatement and the total profit of the supply chain. Among the mechanisms analyzed, the hybrid mechanism realizes the balance between efficiency and incentives and demonstrates stronger adaptability and policy flexibility.

SystemsVol. 13(10)
Chongqing University (CN)
Openalex Percentile: Top 9%
Sustainable Supply Chain Management
2.23
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