Abstract: As environment quality decreases, enterprises and consumers' environmental awareness (CEA) increases, more and more manufacturers begin to invest emission reduction costs and increase the advertisement invests to attract more environemntal-friendly consumers. A low carbon supply chain is studied which consists of a low carbon manufacturer who is responsible for producing low carbon product and a retailer who is responsible for the advertisement. The impacts of CEA are investigated, sharing rate of emission reduction cost, and fairness concern coefficient on enterprises in supply chain by constructed whether the retailer sharing emission reduction cost when considering fariness concern or without this four models. The main findings are (1) the carbon emission reduction level, advertising effort level, wholesale price and price increase with CEA; (2) the carbon emission reduction level, advertising effort level, wholesale price and price decrease with retailer's fairness level; (3) when the retailer shares a portion of the emission reduction cost and does not care fairness, the reduction level of the carbon emission increases with retailer's sharing rate of emission reduction cost; when the retailer is fairness and the level of fairness concern is low, the carbon emission reduction level decreases with retailer's sharing rate of emission reduction cost; when the retailer is concerned about fairness and the level of fairness concern is high, the carbon emission reduction level increases with retailer's sharing rate of emission reduction cost; (4) CEA and retailer sharing the carbon emission reduction cost are both beneficial to environment quality; however, retailer's fairness is not helpful for reducing the carbon emission level. When the retailer concerns fairness concern, whether retailer's sharing carbon cost is beneficial to the environment will depend on the fairness concern level.

Key words: carbon emission reduction, fairness concern, consumers' environmental awareness, advertising effort level, price