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Carbon-efficient Research for Integrated Supply Chain with Carbon Emission Rights

Author: LvJinZuo
Tutor: ZhaoDaoZhi
School: Tianjin University
Course: Logistics Engineering
Keywords: Carbon Emission Rights Trading Carbon-efficiency for Integrated Supply Chain Marginal Abatement Cost Carbon Emission Reduction
CLC: F274
Type: Master's thesis
Year: 2012
Downloads: 2
Quote: 0
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Abstract


In June1992, more than150countries around the world had signed the UnitedNations Framework Convention on Climate Change (UNFCCC). In order to ensureeffective implementation of the Convention, the Parties of the Convention passed the"(United Nations Convention on Climate Change) Kyoto Protocol"(Kyoto Protocol)based on the Convention in1997. The two landmark documents mark the low-carboneconomy’s arrival and the pressure on enterprises emission reduction in the operatingactivities of, but it also is the basis for carbon emissions trading market rules andtrading patterns in low-carbon economy.Low-carbon economy has changed the cost structure and profit model, and thenchanged operations conducts and business model, all of these will affect the sustainedand stable operation of the supply chain.After the study of carbon emissions and low-carbon supply chain literatures bothof Chinese and foreign scholars, this paper was the first one which chose game theory,the level of upstream manufacturer emission abatement and downstream retailer orderquantity was studied before and after the implement of the carbon-efficient strategy.Results showed that the carbon-efficient strategy improved the upstream manufactureremission abatement level, raised the downstream retailer order quantity and increasedthe total profits of the supply chain. And then an optimal price interval wasquantitatively calculated. In this interval, both the manufacturer and the retailer canobtain more profits after the implement of the carbon-efficient strategy, which meetthe participation conditions of the enterprises.Then, this paper uses nonlinear programming method to consider two situation ofsupply chain carbon emissions rights’ restrictions and t supply chain carbon emissionsrights’ trading, make a low carbon model of the whole supply chain, solve andanalyze the factors such as marginal abatement costs, rate of accumulated abatementon enhance the products’ price, the market price of carbon emission rights’ impact toenterprises in the low-carbon strategy of integrated supply chain. This paper uses game theory to simulate the supply chain enterprises in reducingemissions Creativity, and gives the participation constraint of the supply chainenterprises to participate in the integrated low-carbon strategy. It also uses innovativeplanning methods, to consider carbon quota and trading and solve the abatementdecision problem of the N enterprises supply chain. Then it gives the differencesimpact of the abatement costs on low-carbon strategy of integrated supply chain.

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