Whose Investment in Pollution Abatement Is Better for the Environment in a Textile and Garment Supply Chain When Considering Risk Attitudes?

The environmental pollution problem in the textile and garment industry has become increasingly severe, necessitating urgent mitigation. This study examines which supply chain member’s pollution abatement investment generates greater benefits for both the supply chain and the environment, particularly under demand uncertainty. We consider a three-tier textile and garment supply chain and employ uncertainty theory to model member risk attitudes via confidence levels. Based on this, uncertain demand and profit functions are formulated under different investment scenarios—single investment and joint investment. Our comparative analysis reveals that pollution abatement investment by either the fabric manufacturer or the garment manufacturer contributes to environmental sustainability. Which member’s investment is more advantageous for both the environment and supply chain performance depends on their respective cost coefficients. Interestingly, under certain conditions, the fabric manufacturer may derive greater benefit from the garment manufacturer’s investment than from its own. Furthermore, while both the fabric manufacturer and the garment retailer gain more from joint manufacturer investments than from a single manufacturer’s investment, the same does not hold for the garment manufacturer. Finally, as the three members become more risk-averse, both the optimal pollution abatement level and the profits of all members decrease.