Optimal carbon quota allocation for a capital-constrained e-commerce supply chain under the carbon rights buyback policy

Yuyan Wang, Tingting Yu, Qiuchen Wu, T. C.E. Cheng, Yulin Sun

Research output: Journal article publicationJournal articleAcademic researchpeer-review

2 Citations (Scopus)

Abstract

This paper examines the optimal choices of carbon quota allocation methods for members of a capital-constrained e-commerce supply chain that obtains financing through carbon rights buyback. Considering two carbon quota allocation methods, namely the grandfathering system and the benchmarking system, this paper constructs and solves a game model with two cycles in which an e-commerce platform dominates a manufacturer that produces ordinary products and low-carbon products in the two cycles, respectively, examines the impacts of the carbon emissions reduction coefficient, carbon emissions benchmark coefficient, carbon price, and carbon saving on e-commerce supply chain decisions, derives the optimal carbon quota allocation method for each supply chain member under different carbon savings, and finally conducts numerical studies to verify the analytical findings. The study shows that: (1) The grandfathering system is more suitable for manufacturers with low carbon savings, and the benchmarking system is more suitable for manufacturers with high carbon savings. (2) The supply chain system and members prefer different quota allocation methods under different conditions. The e-commerce platform prefers the benchmarking system when the carbon emissions benchmark coefficient is high; otherwise, it chooses the grandfathering system. The manufacturer and the e-commerce supply chain prefer the benchmarking system when the carbon saving is high; otherwise, they prefer the grandfathering system. (3) The grandfathering carbon quota allocation method can more effectively facilitate capital financing for capital-constrained manufacturers.

Original languageEnglish
Article number109902
JournalComputers and Industrial Engineering
Volume188
DOIs
Publication statusPublished - Feb 2024

Keywords

  • Benchmarking system
  • Capital constraints
  • Carbon rights buyback
  • E-commerce supply chain
  • Grandfathering system

ASJC Scopus subject areas

  • General Computer Science
  • General Engineering

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