Abstract:

In the face of escalating global concerns about climate change， industries ubiquitously confront the daunting task of mitigating their carbon footprints. The manufacturing sector， a pivotal arena for the attainment of the “dual carbon” objectives， is experiencing an exigent demand for holistic emission curtailment throughout its supply chain. This investigation elucidates the ramifications of carbon quota trading in refining carbon mitigation methodologies and their synergistic frameworks. Leveraging insights from carbon quota trading， models are formulated under a decentralized decision-making paradigm， wherein component vendors and manufacturers undertake emission reductions either in isolation or collaboratively. A centralized emission reduction decision-making model is also proposed. The carbon reduction magnitudes， product price structures， sales trajectories， and supply chain advantages are juxtaposed across these divergent emission curtailment models. Predicated on the intensity of emission abatement and value generation， the quintessential model for emission reduction within the ambit of carbon quota trading is indentified.Drawing on the example of a tire manufacturing supply chain， Company A （an upstream component purveyor） delivers essential rubber additives and adjuncts requisite for Company B's （a downstream tire producer） manufacturing processes. Collectively， this firm' strategic initiatives within the supply chain facilitate pronounced carbon reduction in products. The findings underscore that galvanizing supply chain stakeholders to coalesce via profit-sharing and cost-allocation agreements not only averts losses stemming from game-theoretic dynamics but also accentuates the scale of emission abatement and amplifies supply chain yields. Such insights proffer invaluable strategic direction for government entities striving to expedite emission reduction trajectories in the manufacturing domain， concurrently furnishing a theoretical scaffold for supply chain businesses aspiring for win-win synergies.The primary findings of the research are as follows　（1） Within the carbon quota trading framework， a centralized decision-making approach engenders a more pronounced product emission diminution than its decentralized counterpart. Notably， the concurrent emission abatement strategy within the decentralized model manifests the most substantial product emission curtailment. （2） Emission abatement endeavors spearheaded by both upstream and downstream entities in the supply chain augment product turnover and enhance the cumulative supply chain yield. Products' turnover and supply chain yields under a centralized framework conspicuously eclipse those under decentralized decision-making. （3） Pertaining to carbon quota trading， supply chain entities can actualize an optimal coordination blueprint intrinsic to the centralized model by mutually committing to emission reductions and initiating profit-sharing and cost-allocation compacts.

Key words: carbon quota trading, carbon emission reduction technology, coordination mechanism, supply chain