Low carbon policy: a green agriculture supply chain perspective

Abstract

With the growing emphasis on low-carbon agriculture and increased public awareness, controlling fertilizer use and methane emissions from farmland through low-carbon policies has become essential for promoting sustainable operations in China’s agricultural product (AP) supply chain. This paper constructs a game-theoretic model to study the dynamics of low-carbon policies and their impact on supply chain performance. The study reveals key findings: (i) Under carbon tax policies, the optimal order quantity in a centralized decision-making framework exceeds that of a decentralized framework, and carbon emission reductions by agricultural firms are higher in the centralized setting. (ii) Carbon trading does not always benefit green agricultural product planting firms. When the unit carbon trading price falls below a certain threshold, the income of both green and conventional agricultural product planting firms is inversely related to the unit carbon trading price. (iii) A revenue-sharing contract facilitates the coordinated development of the supply chain, enabling both agricultural planting firms and sellers to achieve a win–win outcome under mixed carbon policy constraints.This study enriches the body of research on low-carbon supply chain operations for agricultural products, providing a theoretical foundation for decision-making by members of the green agricultural product supply chain under low-carbon policies. Additionally, it offers countermeasures, policy recommendations, and strategies for the development and governance of green agricultural product supply chains, serving as a reference for governments to craft more effective and targeted policies.