Work

Navigating the Carbon Challenge: Strategic Integration of Hybrid Policies in Green Supply Chains

Year: 2025

Type: article

Abstract: In the context of climate change, the increasing urgency to mitigate environmental impacts has driven firms to adopt green supply chain strategies. Existing research primarily focuses on either carbon tax or emission trading schemes, leaving a gap in understanding the combined impact of hybrid carbon policies. This study addresses this gap by developing a dual-tier supply chain model with a manufacturer and retailer, exploring the effects of a carbon tax, emission trading, and a hybrid policy on emission reduction strategies and pricing decisions. Using a reverse inductive method within a Stackelberg game framework, we identify optimal strategies for emission reduction and profit maximization under each policy scenario. Results indicate that the hybrid policy achieves the lowest unit carbon emissions when the manufacturer’s initial pollution level is below a critical threshold. This research contributes to the literature by providing actionable insights into the strategic advantages of hybrid carbon policies for firms seeking both profitability and sustainability in green supply chains.

Source: Sustainability

DOI: 10.3390/su17062390

Authors: Rui Tang, Dingyao Yu, Yongbo Tan

Institutions: Chinese Research Academy of Environmental Sciences, Chinese Academy of Civil Aviation Science and Technology, Harbin University of Commerce

Language: English

Topic: Sustainable Supply Chain Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Climate action, Responsible consumption and production

Open Access status: gold

Estimated APC paid: $2,896