@Article{cmc.2020.012557,
AUTHOR = {Changli Lu, Ming Zhao, Imran Khan, Peerapong Uthansakul},
TITLE = {Financing Strategy of Low-Carbon Supply Chain with Capital Constraint under Cap-and-Trade Regulation},
JOURNAL = {Computers, Materials \& Continua},
VOLUME = {66},
YEAR = {2021},
NUMBER = {1},
PAGES = {437--455},
URL = {http://www.techscience.com/cmc/v66n1/40457},
ISSN = {1546-2226},
ABSTRACT = {Cap-and-trade regulation provides incentives for manufacturers to
reduce carbon emissions, but manufacturers’ insufficient capital can disrupt the
implementation of low-carbon emission reduction technologies. To alleviate capital constraints, manufacturers can adopt external financing for low-carbon emission reduction investments. This paper studies the independent financing and
financing cooperation behavior in a supply chain in which the manufacturer
and retailer first implement low-carbon emission reduction technologies and then
organize production and sales in accordance with wholesale price contracts.
Through comparing the optimal profits and low-carbon emission reduction levels
under the independent financing and financing cooperation mode, we come to the
following conclusions: (1) Although financing interest increases the cost of the
supply chain, manufacturers prefer to invest in reducing carbon emissions rather
than buying carbon quotas. (2) When financing independently, a decentralized
decision-making mode (MD) is the best choice for manufacturers. (3) In cooperative financing, when the supply chain adopts a decentralized decision-making
mode (SD) in which the retailer determines the financing cost-sharing ratio
according to their optimal profit, the profits of the supply chain and its members
are significantly improved. (4) When manufacturers and retailers adopt a centralized decision-making model (SC) in cooperative financing, they jointly determine the financing cost-sharing ratio and the level of low-carbon emission
reduction. If the financing cost-sharing ratio meets a certain threshold range,
the profits of manufacturers and retailers achieve Pareto improvement, indicating
that this cooperative financing model is effective.},
DOI = {10.32604/cmc.2020.012557}
}