Carbon emission reduction cooperation in supply chain with government subsidies

Abstract

Environmental sustainability has become the key index to evaluate the success of supply chain management. This paper aims at the problem of joint emission reduction in supply chain with government subsidies under the Cap-and-Trade mechanism(C&T). Three mathematical models considering green technology investment and two subsidy methods are constructed. It is found that government subsidies cannot ensure that enterprises reduce total carbon emissions. Compared with subsidies based on green investment costs, subsidies based on emission reduction have greater emission reductions, but the total carbon emissions are also greater.