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Chinese Journal of Management Science ›› 2023, Vol. 31 ›› Issue (10): 85-95.doi: 10.16381/j.cnki.issn1003-207x.2021.1079

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Research on Emission Reduction Game between an Overconfident Manufacturer and an Emission Reduction Service Supplier under the Cap-and-trade Regulation

Liang-jie XIA1,Yun-li CAO1,Wen-hao YIN1,Qiu-mei NING1,You-dong LI2()   

  1. 1.School of Business, Tianjin University of Finance and Economics, Tianjin 300222, China
    2.College of Business Administration, Inner Mongolia University of Finance and Economics, Hohhot 010070, China
  • Received:2021-05-31 Revised:2021-11-20 Online:2023-10-15 Published:2023-11-03
  • Contact: You-dong LI E-mail:nmglyd@163.com

Abstract:

Considering the constraints of cap-and-trade regulation, a supply chain decision-making model of overconfident manufacturers and emission reduction service suppliers is constructed, and the game equilibrium between manufacturers and emission reduction service suppliers under the two outsourcing modes of customization and ordering is studied. It also discussed the impact of overconfidence and related parameters on the supply chain members’ decision-making and expected profits. The research showed that both manufacturers and emission reduction service suppliers have optimal decisions under the two emission reduction modes. Under the customization and ordering mode, the output, emission reduction per unit product and profit of manufacturers and emission reduction service suppliers decreased with the increase of initial carbon emissions and manufacturers' emission reduction coefficient. In addition to the price of emission reduction services, output, emission reduction per unit of product and profit change opposite to the emission reduction coefficient of emission reduction service suppliers. Under certain conditions, the optimal decision, expected profit and actual profit of supply chain enterprises under the two modes generally decreased with the increase of overconfidence level. When the distribution function of market demand is uniformly distributed, the ordering mode is more beneficial to the emission reduction service supplier, and the customization mode is more beneficial to the manufacturer.

Key words: cap-and-trade, overconfidence, emission reduction outsourcing, customizing mode, ordering mode

CLC Number: