Research on Supply Chain Optimization Considering Consumer Subsidy Mechanism in the Context of Carbon Neutrality

Author:

Liu Zheng1,Sun Wenzhuo1ORCID,Hu Bin1,Han Chunjia2,Ieromonachou Petros3ORCID,Zhao Yuanjun4,Zheng Jiazhuo4

Affiliation:

1. School of Management, Shanghai University of Engineering Science, Shanghai 201620, China

2. Department of Management, Birkbeck, University of London, London WC1E 7HX, UK

3. Greenwich Business School, University of Greenwich, Old Royal Naval College, Park Row, London SE10 9LS, UK

4. School of Accounting, Nanjing Audit University, Nanjing 211815, China

Abstract

With the proposal of China’s “carbon peak, carbon neutral” strategy, the increasing awareness of low carbon production among consumers, and the government’s introduction of carbon trading mechanism and low carbon consumption subsidy policies, enterprises are facing good opportunities for development. However, how the government can reasonably formulate low carbon policies and how enterprises can implement optimal low-carbon production decisions are still key issues in China’s low-carbon transition development. In this context, this paper is based on the carbon trading mechanism and carbon consumption subsidies. In this context, based on the carbon trading mechanism, this paper focuses on green production and green consumption, considers the impact of low-carbon consumer preferences and government subsidies on enterprises’ low-carbon production decisions, and uses the optimal theory to study the optimal pricing strategy and the optimal carbon reduction strategy. The study shows that the increase in carbon price has a positive effect on the increase in enterprise profit; the increase of carbon emission has a negative effect on the increase of enterprise profit and the high carbon price will intensify this effect. In addition, changing the intensity of government subsidies to consumers will lead to the change of enterprise carbon emission strategy. The study of this paper provides a certain reference for the government to reasonably formulate carbon trading prices and consumer low-carbon subsidies. In addition, considering consumer low-carbon preferences is also conducive to promoting green production practices of enterprises, thus promoting the realization of the carbon neutral strategy.

Funder

National Social Science Fund of China

Publisher

MDPI AG

Subject

Energy (miscellaneous),Energy Engineering and Power Technology,Renewable Energy, Sustainability and the Environment,Electrical and Electronic Engineering,Control and Optimization,Engineering (miscellaneous),Building and Construction

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