Green supply chain transformation and emission reduction based on machine learning

Abstract

Artificial intelligence techniques provide more possibilities for supply chain transformations in the face of global warming and environmental degradation. This study examines the Cournot game model of two competing supply chains with various carbon emission technologies as well as the possibility of upgrading machine learning technology. The investment risk of a supply chain's technology upgrade is either symmetric or asymmetric information. In the case of symmetric information, results show that the machine learning technology upgrade risk does not affect the market equilibrium outcomes of the duopoly model. However, in the case of asymmetric information, technology upgrade risk is vital in determining the quantities and prices of competition equilibrium. To achieve the goal of green supply chain transformation, the government should provide more technology and financial support to traditional supply chains to upgrade their machine learning technology on carbon emissions.