The optimal carbon emission reduction and advertising strategy with dynamic market share in the supply chain
Industrial Management & Data Systems
ISSN: 0263-5577
Article publication date: 23 March 2023
Issue publication date: 24 November 2023
Abstract
Purpose
As the quality of the environment decreases, enterprises and consumers' awareness of environmental protection is constantly improving. More and more enterprises begin to increase their investment in carbon emission reduction and attract environmentally friendly consumers to buy low-carbon products through advertising. The purpose of this paper is to utilize a realistic differential game model to provide dynamic carbon emission reduction strategies, advertising strategies and cooperation methods for complex supply chain members from a long-term perspective.
Design/methodology/approach
This paper uses the extend Vidale-Wolfe model (V-W model) to discuss the dynamic joint emission reduction strategy in the supply chain.
Findings
(1) When consumers' awareness of environmental protection increases, on the whole, carbon emission reduction and profit of products show an upward trend. (2) From a long-term perspective, the manufacturer's advertising subsidy to one of the retailers is the best choice. If the strength of the two retailers is unbalanced, the manufacturer will choose to cooperate with the dominant retailer. (3) Advertising, as a marketing means for retailers to promote low-carbon products, can alleviate the adverse effects of prisoner's dilemma in a semi-cooperative state, but it cannot achieve the Pareto optimization result.
Research limitations/implications
This paper focuses on the analysis of the situation that when the manufacturer is the leader and thinks that consumers are active advocates of low-carbon products.
Originality/value
The results of this paper can provide theoretical basis for the joint emission strategy of supply chain members in low-carbon environment.
Keywords
Acknowledgements
This research was supported by grants from the National Natural Science Foundation of China under Grant 72274096 and 52002349, Youth Foundation of Social Science and Humanity, Yangzhou University (No. Xjj2021-06), Project of Philosophy and Social Science Research in Colleges and Universities in Jiangsu Province (2022SJYB2132). The authors thank editors and three reviewers for their valuable comments and suggestions, from which the paper benefited greatly.
Citation
Tan, Y., Zhou, H., Wu, P. and Huang, L. (2023), "The optimal carbon emission reduction and advertising strategy with dynamic market share in the supply chain", Industrial Management & Data Systems, Vol. 123 No. 10, pp. 2435-2487. https://doi.org/10.1108/IMDS-10-2022-0653
Publisher
:Emerald Publishing Limited
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