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    ARTICLE

    Financing Strategy of Low-Carbon Supply Chain with Capital Constraint under Cap-and-Trade Regulation

    Changli Lu1, Ming Zhao1,2, Imran Khan3, Peerapong Uthansakul4,*

    CMC-Computers, Materials & Continua, Vol.66, No.1, pp. 437-455, 2021, DOI:10.32604/cmc.2020.012557

    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)… More >

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