COORDINATION STRATEGY FOR A DUAL-CHANNEL ELECTRICITY SUPPLY CHAIN WITH SUSTAINABILITY

Abstract

This paper describes the construction of a dual-channel electricity supply chain, with an electricity generation enterprise as the leader and an electricity retail enterprise as the follower, examining sustainability and price decision-making, and formulates a coordination contract to improve electricity supply chain performance. The main results are as follows. Firstly, sensitivity to electricity sustainability contributes to increased electricity sustainability, electricity price, electricity demand, and supply chain enterprises’ profits. Secondly, a centralized model is conducive to investment in more sustainable energy production. Finally, electricity supply chain system coordination can be realized by combining revenue-sharing and cost-sharing in a fixed compensation contract.