Sustainability

Research

20 pages, 2551 KiB

Open AccessArticle

External Intervention or Internal Coordination? Incentives to Promote Sustainable Development through Green Supply Chains

by Yang Tong and Yina Li

Sustainability 2018, 10(8), 2857; https://doi.org/10.3390/su10082857 - 11 Aug 2018

Cited by 16 | Viewed by 3678

Abstract

To encourage firms to engage in green production, two different types of investment funding, namely external funds from agencies outside the supply chain (e.g., government subsidy), and internal funds from supply chain partners (e.g., greening cost-sharing with the retailer), are investigated in this [...] Read more.

To encourage firms to engage in green production, two different types of investment funding, namely external funds from agencies outside the supply chain (e.g., government subsidy), and internal funds from supply chain partners (e.g., greening cost-sharing with the retailer), are investigated in this paper. Based on game theory, the decision-making behavior and profits of a competitive supply chain consisting of a green manufacturer, a regular manufacturer, and a retailer are analyzed under both funding schemes. The results show that while both government subsidy and greening cost-sharing contract can achieve the goals of increasing a product’s degree of greenness and increasing the sales of green products, there are differences between these two methods in reaching these goals. Further, both via theoretical and numerical analysis, we find that although both the green manufacturer and the retailer can greatly benefit from government subsidy and greening cost-sharing contract, they may have different preferences regarding these two methods, which are mainly related to the size of the government subsidy, the fraction of greening cost-sharing with the retailer, the Research and Development (R&D) cost coefficient, the greenness sensitivity coefficient, and price sensitivity coefficient. Finally, the supply chain members’ behaviors (including the production and pricing decisions and, the choice of funds investment) are largely affected by the government subsidy mechanism. Full article

(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)

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15 pages, 880 KiB

Open AccessArticle

Governance Mechanisms for Green Supply Chain Partnership

by Chen-lung Yang and Suyuan Lien

Sustainability 2018, 10(8), 2681; https://doi.org/10.3390/su10082681 - 31 Jul 2018

Cited by 16 | Viewed by 4347

Abstract

The literature has recognized the value of green supply chain management in achieving the goals of environmental management. Yet developing and fostering sustainability partnerships among supply chain organizations remains challenging. Bounded rationality and opportunistic behaviors are likely to hinder joint sustainability collaboration and [...] Read more.

The literature has recognized the value of green supply chain management in achieving the goals of environmental management. Yet developing and fostering sustainability partnerships among supply chain organizations remains challenging. Bounded rationality and opportunistic behaviors are likely to hinder joint sustainability collaboration and performance. The literature has called for a better understanding of the governance of green supply chain collaboration. This study applies transactional cost economics as a conceptual framework to investigate the relationships among transaction features, governance mechanisms, and environmental performance. Using the data collected from 969 plants in 17 countries, the statistical analysis compares and validates the effectiveness of three alternative governance mechanisms: contractual governance, problem-solving cooperation governance, and information-sharing governance. The statistical results reveal significant performance differences in how firms apply alternative governance mechanisms to mitigate opportunism, manage adaptation problems, and improve green supply chain collaboration and performance. Overall, this study makes research contributions by confirming the mediation effects of governance mechanisms on green supply chain practices. For green supply chains to be a viable practice, firms should apply governance mechanisms in proper alignment with the nature of the collaborative and environmental conditions. Full article

(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)

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18 pages, 521 KiB

Open AccessArticle

The Impact of Sustainable Sourcing on Customer Perceptions: Association by Guilt from Scandals in Local vs. Offshore Sourcing Countries

by Claire Veit, Wim Lambrechts, Lieven Quintens and Janjaap Semeijn

Sustainability 2018, 10(7), 2519; https://doi.org/10.3390/su10072519 - 18 Jul 2018

Cited by 21 | Viewed by 8012

Abstract

This study analyzes whether customer perceptions towards sustainability are affected by a company’s country of origin and sourcing strategies. This study builds upon the literature regarding customer interest in sustainable products. It adds the country of origin to the link between customer and [...] Read more.

This study analyzes whether customer perceptions towards sustainability are affected by a company’s country of origin and sourcing strategies. This study builds upon the literature regarding customer interest in sustainable products. It adds the country of origin to the link between customer and company, and analyzes if and how customer perceptions change when they are introduced to a sustainability scandal, hence analyzing possible ‘association by guilt’. It compares their reactions to offshore scandals and to local scandals, therefore taking psychic distance as an important variable into consideration. Customer perceptions of company sustainability was found to have an impact on purchasing behavior. Findings show that perceptions are influenced by psychic distance. Furthermore, companies should take into account the risk of association by guilt when developing their global sourcing strategies. Full article

(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)

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20 pages, 596 KiB

Open AccessArticle

Government Support and Market Proximity: Exploring Their Relationship with Supply Chain Agility and Financial performance

by Liliana Avelar-Sosa, Jorge L. García-Alcaraz, José M. Mejía-Muñoz, Aidé A. Maldonado-Macías and Giner Alor Hernández

Sustainability 2018, 10(7), 2441; https://doi.org/10.3390/su10072441 - 12 Jul 2018

Cited by 11 | Viewed by 4068

Abstract

The current paper presents a structural equation model with four variables (Government, Infrastructure, Proximity to market, and supply chain Agility) affecting the Financial performance of a company. Six hypotheses or relationships among variables are proposed, supposing that Government and [...] Read more.

The current paper presents a structural equation model with four variables (Government, Infrastructure, Proximity to market, and supply chain Agility) affecting the Financial performance of a company. Six hypotheses or relationships among variables are proposed, supposing that Government and market Proximity are key elements to achieve a greater Agility in supply chains, considering the regional Infrastructure to determine the impact on Financial performance in manufacturing companies. The model is validated with data from a survey applied to 225 persons in 65 manufacturing companies located in Ciudad Juárez, Chihuahua, Mexico. The model is evaluated using partial least squares, and the findings indicate that there is a direct and positive effect from the Government on regional Infrastructure with a rate of 0.436. When the Government supports the availability of land, energy resources, transportation, telecommunications, mobile telephones, and other services, a positive change is achieved in the Infrastructure and supply chain Agility. Furthermore, the Government also has a direct and positive effect on the market Proximity at a rate of 0.171; consequently, the regional Infrastructure also has an effect on it. Similarly, the market Proximity directly and positively influences the supply chain Agility, as well as a company’s Financial performance at a rate of 0.506. Full article

(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)

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23 pages, 2942 KiB

Open AccessArticle

A Dynamic Failure Rate Forecasting Model for Service Parts Inventory

by Ta-Yu Chen, Woo-Tsong Lin and Chwen Sheu

Sustainability 2018, 10(7), 2408; https://doi.org/10.3390/su10072408 - 10 Jul 2018

Cited by 9 | Viewed by 4174

Abstract

This study investigates one of the reverse logistics issues, after-sale repair service for in-warranty products. After-sale repair service is critical to customer service and customer satisfaction. Nonetheless, the uncertainty in the number of defective products returned makes forecasting and inventory planning of service [...] Read more.

This study investigates one of the reverse logistics issues, after-sale repair service for in-warranty products. After-sale repair service is critical to customer service and customer satisfaction. Nonetheless, the uncertainty in the number of defective products returned makes forecasting and inventory planning of service parts difficult, which leads to a backlog of returned defectives or an increase in inventory costs. Based on Bathtub Curve (BTC) theory and Markov Decision Process (MDP), this study develops a dynamic product failure rate forecasting (PFRF) model to enable third-party repair service providers to effectively predict the demand for service parts and, thus, mitigate risk impacts of over- or under-stocking of service parts. A simulation experiment, based on the data collected from a 3C (computer, communication, and consumer electronics) firm, and a sensitivity analysis are conducted to validate the proposed model. The proposed model outperforms other approaches from previous studies. Considering the number of new products launched every year, the model could yield significant inventory cost savings. Managerial and research implications of our findings are presented, with suggestions for future research. Full article

(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)

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20 pages, 798 KiB

Open AccessArticle

The Effects of Integrative Leadership on the Enterprise Synergy Innovation Performance in a Supply Chain Cooperative Network

by Dapeng Zhang, Xinbo Sun, Yide Liu, Shunyi Zhou and Hongfeng Zhang

Sustainability 2018, 10(7), 2342; https://doi.org/10.3390/su10072342 - 6 Jul 2018

Cited by 23 | Viewed by 4734

Abstract

Collaborative innovation in a supply chain cooperative network can improve the performance of the enterprise. However, how to achieve the sustainable and stable improvement of the enterprise synergy innovation in a supply chain cooperative network is a common topic of research. Based on [...] Read more.

Collaborative innovation in a supply chain cooperative network can improve the performance of the enterprise. However, how to achieve the sustainable and stable improvement of the enterprise synergy innovation in a supply chain cooperative network is a common topic of research. Based on a survey of 236 enterprises in 53 supply chain cooperative networks, this study found: (1) Integrative leadership has a positive impact on the enterprise synergy innovation performance in a supply chain cooperative network; (2) Knowledge integration and network relationship embeddedness play partial mediating roles between integrative leadership and the enterprise synergy innovation performance, respectively; (3) Knowledge integration and network relationship embeddedness play a sequenced mediating role between integrative leadership and the enterprise synergy innovation performance; (4) The partial mediation role of knowledge integration and network relationship embeddedness are of no significant difference; however, their single mediating roles are greater than that of the sequenced mediating role of knowledge integration and network relationship embeddedness. This paper further emphasizes the key role of the core organization leadership in a cooperative network and discusses its functional route, which is of great importance in developing the theory system of leadership and providing guidance for the cooperation of the supply chain. Full article

(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)

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19 pages, 879 KiB

Open AccessArticle

The Effects of Customer Perception and Participation in Sustainable Supply Chain Management: A Smartphone Industry Study

by Hyunsoo Kim and Chang Won Lee

Sustainability 2018, 10(7), 2271; https://doi.org/10.3390/su10072271 - 2 Jul 2018

Cited by 20 | Viewed by 10911

Abstract

This empirical study aims to identify the relationship between the role of customer and the customer’s perception and participation in sustainable supply chain management (SSCM). It also aims to examine the relationships among customer’s perception in the SSCM practices, self–brand connection, trust, purchase [...] Read more.

This empirical study aims to identify the relationship between the role of customer and the customer’s perception and participation in sustainable supply chain management (SSCM). It also aims to examine the relationships among customer’s perception in the SSCM practices, self–brand connection, trust, purchase intention, and the willingness to pay a price premium. Previous studies were reviewed, and statistical analysis was conducted with reliability and validity tests, correlation analysis, and a structural equation model. A smartphone industry was selected and a total of 367 data were utilized for this empirical study. The analysis results showed that the customer’s perception of a brand’s SSCM has a positive impact on the customer’s self–brand connection and trust prospectively. Customer’s participation in SSCM also had a positive relation to customer’s self–brand connection and to trust. Self–brand connection and trust played mediating roles between the customer’s perception and purchase intention and between the customer’s perception and the willingness to pay a price premium. The same mediating roles of self–brand connection and trust were found between customers’ participation and purchase intention as well as between customers’ participation and the willingness to pay a price premium. This study identifies the roles of customers as end users in sustainable supply chain management. This study provides managerial insights about customers’ perception of SSCM and their participation in it, resulting in better financial outcomes and improved operational excellence. Full article

(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)

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14 pages, 585 KiB

Open AccessArticle

Environmental Sustainability as a Source of Product Innovation: The Role of Governance Mechanisms in Manufacturing Firms

by Myung Kyo Kim, Chwen Sheu and Jiho Yoon

Sustainability 2018, 10(7), 2238; https://doi.org/10.3390/su10072238 - 29 Jun 2018

Cited by 14 | Viewed by 3678

Abstract

Over the past two decades, since the emergence of the triple bottom line philosophy, the relationship between environmental sustainability and corporate performance has received a lot of attention, but has generated mixed or often even contradictory results. A few recent studies have inferred [...] Read more.

Over the past two decades, since the emergence of the triple bottom line philosophy, the relationship between environmental sustainability and corporate performance has received a lot of attention, but has generated mixed or often even contradictory results. A few recent studies have inferred that innovations are the missing link that connects the environmental sustainability of a firm to other performance metrics; however, the evidence of such a proposition has been restricted to being conceptual or anecdotal. Relying on a knowledge governance approach, this study presents exploratory empirical evidence indicating that the impacts of a firm’s sustainability initiatives on its innovation performance originate from the governance mechanism it uses for sustainability, not sustainability outcomes per se. We tested this research proposition by using a subsample of Global Manufacturing Research Group’s global survey data. Our results support the positive impacts of two widely-used environmental sustainability governance mechanisms (i.e., internal monitoring and supplier collaboration) on product innovation capability. The findings further provide more useful and effective options for manufacturing firms and managers, to establish environmental sustainability governance mechanisms that can be converted into product innovation capability. Full article

(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)

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20 pages, 3360 KiB

Open AccessArticle

Corporate Social Responsibility (CSR): A Survey of Topics and Trends Using Twitter Data and Topic Modeling

by Bongsug (Kevin) Chae and Eunhye (Olivia) Park

Sustainability 2018, 10(7), 2231; https://doi.org/10.3390/su10072231 - 28 Jun 2018

Cited by 64 | Viewed by 13539

Abstract

Corporate social responsibility (CSR) is an essential business practice in industry and a popular topic in academic research. Several studies have attempted to understand topics or categories in CSR contexts and some have used qualitative techniques to analyze data from traditional communication channels [...] Read more.

Corporate social responsibility (CSR) is an essential business practice in industry and a popular topic in academic research. Several studies have attempted to understand topics or categories in CSR contexts and some have used qualitative techniques to analyze data from traditional communication channels such as corporate reports, newspapers, and websites. This study adopts computational content analysis for understanding themes or topics from CSR-related conversations in the Twitter-sphere, the largest microblogging social media platform. Specifically, a probabilistic topic modeling-based computational text analysis framework is introduced to answer three questions: (1) What CSR-related topics are being communicated in the Twitter-sphere and what are the prevalent topics or themes in CSR conversation? (topic prevalence); (2) How are those topics interrelated? (topic correlation); (3) How have those topics changed over time? (topic evolution). The topic modeling results are discussed, and the direction for future research is presented. Full article

(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)

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31 pages, 7752 KiB

Open AccessArticle

A Closed-Loop Supply Chain with Competitive Dual Collection Channel under Asymmetric Information and Reward–Penalty Mechanism

by Wenbin Wang, Shuya Zhou, Meng Zhang, Hao Sun and Lingyun He

Sustainability 2018, 10(7), 2131; https://doi.org/10.3390/su10072131 - 22 Jun 2018

Cited by 25 | Viewed by 3391

Abstract

We investigate a closed-loop supply chain (CLSC) where the retailer and the third-party recycler compete against each other to collect waste electrical and electronic equipment (WEEE) given that collection effort is their private information. Using the principle-agent theory, we develop a CLSC model [...] Read more.

We investigate a closed-loop supply chain (CLSC) where the retailer and the third-party recycler compete against each other to collect waste electrical and electronic equipment (WEEE) given that collection effort is their private information. Using the principle-agent theory, we develop a CLSC model with dual collection channel without the government’s reward–penalty mechanism (RPM). An information screening contract is designed for the manufacturer to attain real information on collection effort levels; meanwhile, the optimal decision-making results of other decision variables are derived. Next, we take RPM into account to further examine the efficacy of the government’s guidance mechanism in improving collection rate and profits of CLSC members. Our results indicate that (i) the collection competition reduces the total collection quantity and the expected profits of all the CLSC members without RPM; (ii) all CLSC members’ expected profits are improved if both two collection agents select a high collection effort level without and with RPM; (iii) RPM increases buyback price, collection price, collection quantity, and franchise fee but decreases wholesale price and retail price; with the reward–penalty intensity increasing, the manufacturer’s expected profit first decreases and then increases, while the expected profits of H-type retailer and H-type third-party recycler continue to increase. We find that RPM may ultimately stimulate the collection agents to collect more WEEEs, while the intense collection competition reduces the profits of CLSC members. Full article

(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)

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18 pages, 1844 KiB

Open AccessArticle

Low-Carbon Supply Chain Management Considering Free Emission Allowance and Abatement Cost Sharing

by Peng Wu, Yixi Yin, Shiying Li and Yulong Huang

Sustainability 2018, 10(7), 2110; https://doi.org/10.3390/su10072110 - 21 Jun 2018

Cited by 7 | Viewed by 2790

Abstract

As people concern themselves with environmental problems, the right to emit carbon dioxide becomes a new resource with business value that is incorporated in firms’ budgets. This paper studies the optimal emission abatement decision for firms in a supply chain, considering emission costs. [...] Read more.

As people concern themselves with environmental problems, the right to emit carbon dioxide becomes a new resource with business value that is incorporated in firms’ budgets. This paper studies the optimal emission abatement decision for firms in a supply chain, considering emission costs. Four Stackelberg models are established that differ in free emission allowance allocation schemes and emission abatement cost-sharing schemes. On comparing optimal solutions in the models, the results show that regardless of which free emission allowance allocation scheme or emission abatement cost-sharing scheme is adopted, upstream firms tend to set a higher emission reduction rate. If supply chain firms aim for a higher emission reduction rate, they should advocate that upstream and downstream firms establish emission abatement cost-sharing contracts. The upstream firms should undertake larger emission reduction costs, and use free emission allowance allocation schemes based on emission intensity; the optimal emission reduction rate is related to carbon price, and the relationship may not be monotonous, affected by the difficulty of reducing emissions. Full article

(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)

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29 pages, 4751 KiB

Open AccessArticle

The Influence of Collaboration Initiatives on the Sustainability of the Cashew Supply Chain

by Susana G. Azevedo, Minelle E. Silva, João C. O. Matias and Gustavo P. Dias

Sustainability 2018, 10(6), 2075; https://doi.org/10.3390/su10062075 - 19 Jun 2018

Cited by 29 | Viewed by 6164

Abstract

Collaboration is emerging as a requirement for strengthening relationships among supply chain members and sustainability is rising as a real-world solution for different environmental issues. There are numerous studies that approach both perspectives, but there are still many questions about their relationship, mostly [...] Read more.

Collaboration is emerging as a requirement for strengthening relationships among supply chain members and sustainability is rising as a real-world solution for different environmental issues. There are numerous studies that approach both perspectives, but there are still many questions about their relationship, mostly in the agri-food industry. Hence, this paper aims to address the influence of collaboration initiatives on the sustainability indicators of the cashew supply chain (SC). To reach this objective, a case study was performed among farmers belonging to the Cooperative of Cashews in the Piauí state (COCAJUPI), a local cooperative in Northern Brazil. Attending to the results, it is possible to state that the collaboration initiatives that have higher levels of implementation among research companies are the “trust among supply chain members” and the “sharing of standards information”. Moreover, the size of companies in the cashew SC does not influence the level of implementation of collaboration initiatives. The findings of this study demonstrate that the farms’ area of the companies from the cashew SC does not have a significant influence on their sustainability indicators. Furthermore, a weak relationship exists between the collaboration initiatives and the indicators associated to the three dimensions of sustainability. Full article

(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)

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15 pages, 418 KiB

Open AccessArticle

The Principal–Agent Leasing Model of “Company + n Farmers” under Two Division Modes

by Jianjun Yu, Xiaohuan Zheng, Yongwu Zhou and Qiongzhi Zhang

Sustainability 2018, 10(6), 2015; https://doi.org/10.3390/su10062015 - 14 Jun 2018

Cited by 2 | Viewed by 2551

Abstract

The principal–agent leasing model consisting of one risk-neutral company and n risk-averse farmers is proposed by taking into consideration the characteristics of contract-farming and the fulfilment issues existing in the production process of agricultural products. We also discuss the optimal incentive coefficients and [...] Read more.

The principal–agent leasing model consisting of one risk-neutral company and n risk-averse farmers is proposed by taking into consideration the characteristics of contract-farming and the fulfilment issues existing in the production process of agricultural products. We also discuss the optimal incentive coefficients and rents for n farmers under the two strategies of decentralization and concentration. The analysis suggests that the two division modes have no influence on the determination of the optimal effort level and the incentive coefficient of each party, and under the n farmers, the incentive coefficient given by the company to a single farmer household is not affected by the conditions of other farmer households. In terms of rent, land rent in the decentralized mode is strictly higher than land rent under the centralized mode. In the two modes of division, the total income of the company and the farmers is equal. Taking into account the randomness of the production process of agricultural products, the company will prefer to choose the centralized mode, and the farmers will tend to choose the decentralized mode in cooperation. Full article

(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)

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26 pages, 2691 KiB

Open AccessArticle

Toward Supply Chain Sustainability: Governance and Implementation of Joint Sustainability Development

by Yongmei Xu, Jiho Yoon, Myung Kyo Kim and Chwen Sheu

Sustainability 2018, 10(5), 1658; https://doi.org/10.3390/su10051658 - 21 May 2018

Cited by 6 | Viewed by 3719

Abstract

The extant sustainability literature has argued that supply chain (SC) members can gain both financial and operational benefits from a joint sustainability development (JSD) effort. However, no guidance has been provided on how SC members could collaborate on their sustainability development efforts to [...] Read more.

The extant sustainability literature has argued that supply chain (SC) members can gain both financial and operational benefits from a joint sustainability development (JSD) effort. However, no guidance has been provided on how SC members could collaborate on their sustainability development efforts to achieve the intended economic performance. This study addressed this research gap by proposing different contractual governances, based on a game-theoretic approach, for both manufacturer and retailer to better engage in JSD. Specifically, multiple JSD contractual arrangements regarding profit and associated cost sharing between manufacturers and retailers were defined and evaluated. Our analyses show that the manufacturer behaves opportunistically when the impact of a retailer’s effort on consumer demand is low. In other words, the retailer increases its sustainability effort, but not the manufacturer. However, such opportunistic behavior can be removed under a revenue sharing arrangement. That is, the manufacturer becomes cooperative with the retailer, and both retailer and manufacturer increase their JSD efforts. Several numerical experiments were conducted to assess the effectiveness of various revenue sharing arrangements (no sharing, partial profit sharing, and total profit sharing) in devising and implementing a mutually beneficial JSD program. Accordingly, several guidelines for the SC JSD implementation are provided. Full article

(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)

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19 pages, 3666 KiB

Open AccessArticle

The Economic Effect of Virtual Warehouse-Based Inventory Information Sharing for Sustainable Supplier Management

by Hosang Jung and Sukjae Jeong

Sustainability 2018, 10(5), 1547; https://doi.org/10.3390/su10051547 - 13 May 2018

Cited by 8 | Viewed by 5112

Abstract

With the rapid development of information and communication technologies, inventory information sharing between a manufacturer and its suppliers is becoming easier than ever. In line with this trend, we focus on the virtual warehouse where only inventory information on all of the material [...] Read more.

With the rapid development of information and communication technologies, inventory information sharing between a manufacturer and its suppliers is becoming easier than ever. In line with this trend, we focus on the virtual warehouse where only inventory information on all of the material provided by the suppliers can be stored and shared. Unlike traditional supplier management, the manufacturer constructs and operates this virtual warehouse to check the inventory levels of all the required material at the same time, but each supplier can access only the information about its inventory. This virtual warehouse-based approach can foster a tight relationship between the manufacturer and its suppliers and can handle suppliers as a single company without a large investment in constructing a physical warehouse. The virtual warehouse-based approach seems to be more economically sustainable. To investigate the effect of inventory information sharing via the virtual warehouse, we developed and analyzed a system dynamics-based simulation model. The experiment results show that sharing the inventory information of the suppliers via the virtual warehouse can help manufacturers to achieve better operational performance on several important measures, such as the reduction of finished goods inventory, parts purchasing quantity, degree of backlogs, and total cost. Full article

(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)

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33 pages, 7589 KiB

Open AccessArticle

Cost-Sharing Contracts for Energy Saving and Emissions Reduction of a Supply Chain under the Conditions of Government Subsidies and a Carbon Tax

by Yuyin Yi and Jinxi Li

Sustainability 2018, 10(3), 895; https://doi.org/10.3390/su10030895 - 20 Mar 2018

Cited by 68 | Viewed by 5858

Abstract

To study the cooperation of upstream and downstream enterprises of a supply chain in energy saving and emissions reduction, we establish a Stackelberg game model. The retailer moves first to decide a cost-sharing contract, then the manufacturer determines the energy-saving level, carbon-emission level, [...] Read more.

To study the cooperation of upstream and downstream enterprises of a supply chain in energy saving and emissions reduction, we establish a Stackelberg game model. The retailer moves first to decide a cost-sharing contract, then the manufacturer determines the energy-saving level, carbon-emission level, and wholesale price successively. In the end, the retailer determines the retail price. As a regulation, the government provides subsidies for energy-saving products, while imposing a carbon tax on the carbon emitted. The results show that (1) both the energy-saving cost-sharing (ECS) and the carbon emissions reduction cost-sharing (CCS) contracts are not the dominant strategy of the two parties by which they can facilitate energy savings and emissions reductions; (2) compared with single cost-sharing contracts, the bivariate cost-sharing (BCS) contract for energy saving and emissions reduction is superior, although it still cannot realise prefect coordination of the supply chain; (3) government subsidy and carbon tax policies can promote the cooperation of both the upstream and downstream enterprises of the supply chain—a subsidy policy can always drive energy saving and emissions reductions, while a carbon tax policy does not always exert positive effects, as it depends on the initial level of pollution and the level of carbon tax; and (4) the subsidy policy reduces the coordination efficiency of the supply chain, while the influences of carbon tax policy upon the coordination efficiency relies on the initial carbon-emission level. Full article

(This article belongs to the Special Issue Toward Sustainability: Supply Chain Collaboration and Governance)

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