Work

Research on Cost-Sharing Contract Coordination Under Different Carbon Quota Allocation Mechanisms—Manufacturing Supply Chain Model Analysis

Year: 2025

Type: article

Abstract: Against the background of carbon neutrality, the impact of carbon quota allocation mechanism on supply chain’s decision-making of emission reduction has received increasing attention. This study analyzes the optimal decision-making behavior of manufacturing supply chains under three mechanisms: completely free, complete auction and hybrid. Meanwhile, the abatement cost-sharing contract is introduced and the backward induction method is applied to solve the optimal equilibrium solution under each mechanism. Combined with numerical simulation, this study further investigates the impacts of market demand and cost-sharing coefficient changes on the system profit. The result shows that the abatement cost-sharing contract can significantly improve the level of manufacturers’ abatement and the total profit of the supply chain. Among the mechanisms analyzed, the hybrid mechanism realizes the balance between efficiency and incentives and demonstrates stronger adaptability and policy flexibility.

Source: Systems

DOI: 10.3390/systems13100841

Authors: Siqi Huang, Shilong Li

Institution: Chongqing University

Language: English

Topic: Sustainable Supply Chain Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Climate action, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $2,896