Pricing and Coordination Strategies in a Dual Channel Supply Chain with Green Production under Cap and Trade Regulation
In this paper, we consider a two level dual channel green supply chain consisting of a retailer and a manufacturer with a separate sales channel for the manufacturer. The manufacturer uses green technology in its production and is required to produce in accordance with the cap and trade regulation....
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MDPI AG
2021
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oai:doaj.org-article:c4e69bf317394d00b8447ecba2b761622021-11-11T19:48:33ZPricing and Coordination Strategies in a Dual Channel Supply Chain with Green Production under Cap and Trade Regulation10.3390/su1321122322071-1050https://doaj.org/article/c4e69bf317394d00b8447ecba2b761622021-11-01T00:00:00Zhttps://www.mdpi.com/2071-1050/13/21/12232https://doaj.org/toc/2071-1050In this paper, we consider a two level dual channel green supply chain consisting of a retailer and a manufacturer with a separate sales channel for the manufacturer. The manufacturer uses green technology in its production and is required to produce in accordance with the cap and trade regulation. Using game theory, we compare cases where members decide to compete or cooperate with each other in terms of pricing and production. Our main contributions are studying the dual channel supply chain model where a manufacturer is regulated by the cap and trade system, using green production and also on their decision as to whether to compete or cooperate with a value-adding retailer. We also investigated the impact of green production on lowering the amount of carbon emissions produced. In the present study, supply chain members are advised to cooperate with each other in order to achieve the environmental benefits of the cap and trade system and, to avoid market failure, we further recommend that manufacturers should invest in green technologies for their production.Ata Allah TaleizadehMilad ShahriariShib Sankar SanaMDPI AGarticlepricingcap and trade regulationgreen technologygame theoryEnvironmental effects of industries and plantsTD194-195Renewable energy sourcesTJ807-830Environmental sciencesGE1-350ENSustainability, Vol 13, Iss 12232, p 12232 (2021) |
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DOAJ |
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topic |
pricing cap and trade regulation green technology game theory Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350 |
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pricing cap and trade regulation green technology game theory Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350 Ata Allah Taleizadeh Milad Shahriari Shib Sankar Sana Pricing and Coordination Strategies in a Dual Channel Supply Chain with Green Production under Cap and Trade Regulation |
description |
In this paper, we consider a two level dual channel green supply chain consisting of a retailer and a manufacturer with a separate sales channel for the manufacturer. The manufacturer uses green technology in its production and is required to produce in accordance with the cap and trade regulation. Using game theory, we compare cases where members decide to compete or cooperate with each other in terms of pricing and production. Our main contributions are studying the dual channel supply chain model where a manufacturer is regulated by the cap and trade system, using green production and also on their decision as to whether to compete or cooperate with a value-adding retailer. We also investigated the impact of green production on lowering the amount of carbon emissions produced. In the present study, supply chain members are advised to cooperate with each other in order to achieve the environmental benefits of the cap and trade system and, to avoid market failure, we further recommend that manufacturers should invest in green technologies for their production. |
format |
article |
author |
Ata Allah Taleizadeh Milad Shahriari Shib Sankar Sana |
author_facet |
Ata Allah Taleizadeh Milad Shahriari Shib Sankar Sana |
author_sort |
Ata Allah Taleizadeh |
title |
Pricing and Coordination Strategies in a Dual Channel Supply Chain with Green Production under Cap and Trade Regulation |
title_short |
Pricing and Coordination Strategies in a Dual Channel Supply Chain with Green Production under Cap and Trade Regulation |
title_full |
Pricing and Coordination Strategies in a Dual Channel Supply Chain with Green Production under Cap and Trade Regulation |
title_fullStr |
Pricing and Coordination Strategies in a Dual Channel Supply Chain with Green Production under Cap and Trade Regulation |
title_full_unstemmed |
Pricing and Coordination Strategies in a Dual Channel Supply Chain with Green Production under Cap and Trade Regulation |
title_sort |
pricing and coordination strategies in a dual channel supply chain with green production under cap and trade regulation |
publisher |
MDPI AG |
publishDate |
2021 |
url |
https://doaj.org/article/c4e69bf317394d00b8447ecba2b76162 |
work_keys_str_mv |
AT ataallahtaleizadeh pricingandcoordinationstrategiesinadualchannelsupplychainwithgreenproductionundercapandtraderegulation AT miladshahriari pricingandcoordinationstrategiesinadualchannelsupplychainwithgreenproductionundercapandtraderegulation AT shibsankarsana pricingandcoordinationstrategiesinadualchannelsupplychainwithgreenproductionundercapandtraderegulation |
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1718431433764110336 |