The Open Cybernetics & Systemics Journal

2014, 8 : 931-937
Published online 2014 December 31. DOI: 10.2174/1874110X01408010931
Publisher ID: TOCSJ-8-931

Enterprises’ Emission Reduction Cooperation in Carbon Supply Chain

Pan Xin-Yu , Zhao Daozhi and Wu Cheng-Xia
College of Management and Economics, Tianjin University, Tianjin 300072, China and Department of Economics and Management, Tangshan College, Tangshan 063000, China.

ABSTRACT

This paper investigates how upstream and downstream enterprises choose emission reduction strategy while they are facing environmental regulation, but also analyses their profits and reduction efficiencies in three typical situations. It can be obtained that in full-cooperation case, both their profit and reduction efficiency are optimal. Meanwhile, the relationship between reduction and carbon price can also be analyzed, which allows for externality and different carbon quota allocations. In brief, it can provide a theoretical basis for enterprise to make a wise strategy on emission reduction.

Keywords:

Carbon price, carbon quota allocation policy, emission reduction rate, marginal utility, social welfare.