Pricing and equity in cross-regional green supply chains |
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| Institution: | 1. School of Management and E-Business, Zhejiang Gongshang University, Hangzhou 310018, China;2. University of Exeter Business School, University of Exeter, EX4 4PU Exeter, UK;3. Zhejiang Scientific Research Institute of Transport, Hangzhou 310006, China;4. NUS Business School and The Logistics Institute-Asia Pacific, National University of Singapore, 119613, Singapore;1. HEC Liège, Management School of the University of Liège, Liège, Belgium;2. School of Business and Economics, Maastricht University, Maastricht, the Netherlands;1. Department of Industrial Engineering, Faculty of Engineering, Sabzevar University of New Technology, Sabzevar, Iran;2. WMG, University of Warwick, Coventry CV4 7AL, UK;3. Industrial Engineering Department, Faculty of Engineering, Ferdowsi University of Mashhad, P.O. Box 91775-1111, Mashhad, Iran;1. College of Administration and Economics, University of Anbar, Iraq;2. Institute of Strategic Industrial Decision Modelling, School of Quantitative Sciences, Universiti Utara Malaysia, Sintok 06010 UUM, Kedah, Malaysia;3. Department of Industrial Engineering, Hakim Sabzevari University, Sabzevar, Iran;4. Centre for Simulation, Analytics and Modelling (CSAM), University of Exeter Business School, Exeter, EX4 4PU, United Kingdom;1. Carey Business School, Johns Hopkins University, Baltimore, MD 21202 United States;2. Department of Information Systems and Operations Management, Warrington College of Business Administration, University of Florida, Gainesville, FL 32611-7169 United States;3. Department of Supply Chain Management, Broad College of Business, Michigan State University, East Lansing, MI 48824, United States;1. School of Business, Sichuan Normal University, Chengdu 610101, PR China;2. School of Science and Engineering, The Chinese University of Hong Kong, Shenzhen, Shenzhen 518172, PR China;3. School of Management and Economics, University of Electronic Science and Technology, Chengdu 610054, PR China;4. The Shenzhen Research Institute of Big Data, Shenzhen 518172, PR China;5. School of Data Science, The Chinese University of Hong Kong, Shenzhen, Shenzhen 518172, PR China;6. School of Business, Sichuan Normal University, Chengdu 610101, PR China;7. School of Business Administration, South China University of Technology, Guangzhou 510641, PR China |
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| Abstract: | This paper addresses the problem of the firms operating on cross-border or inter-regional platforms that are subject to the enforcement of each local government's carbon emissions regulatory policy, thus causing an imbalance in the sharing of the burden of the greening of the total supply chain. We introduce the concept of equity as the incentive mechanism to coordinate this green supply chain which is a function of the carbon emission permits and the revenue generated by the firms. Due to the complexity and imbalance in the original incentive mechanism to this problem, we provide a new equivalent supply chain network equilibrium model under elastic demand based on user equilibrium theory. We state the user equilibrium conditions and provide the equivalent formulation. We show the trade-offs under various carbon emissions regulatory policies. A product with higher price elasticity and carbon emission intensity not only hampers the firm from gaining a higher revenue, but it also reduces the equity of the system under an invariant emission regulatory policy. |
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