Study on Supply Chain Carbon Emission Reduction Measures

Abstract

A comparative study of three carbon reduction measures in the supply chain, namely carbon tax, government subsidies and carbon trading, is conducted to analyse their advantages and disadvantages, the level of emission reduction and the impacts on supply chain members. Further, through real-life supply chain scenarios such as manufacturing and new energy vehicles, we focus on analysing the emission reduction effects of different government subsidies for manufacturers and retailers. The results show that carbon tax is advantageous in driving economic growth. Different government subsidies stimulate consumption leading to profit growth. The carbon market is easier to implement and control but is still in its infancy and needs to be supported by relevant policies. Manufacturers and retailers in different industrial supply chains have different preferences when it comes to different subsidies, and the right subsidies can lead to higher social welfare and economic efficiency.