Decision analysis for manufacturers to carry out emission reduction through technology Innovation under carbon emission constraints

摘要

In view of a secondary supply chain system composed of one manufacturer and one retailer, the paper builds the judgment model about how the prevailing manufacturer can carry out emission reduction through technology innovation under carbon emission constraints by taking Stackelberg Game theory, and compares the impacts of the manufacturer decisions on the prices and profits of the manufacturer and the retailer. The results show that the prices and profits of the manufacturer and the retailer are the higher with technology innovation than without technology innovation under certain conditions, and are affected by the consumer preference for low carbon, market size and investment size parameter. In addition, there is a threshold value about the optimal carbon emissions caps and the policy can encourage technology innovation and carbon reduction within the threshold value. At last the results are verified by the sample application.