Revenue Coordination of Straw Power Generation Supply Chain Under Carbon Trading Environment

Abstract

As a major agricultural country, China’s straw energy has received extensive attention in the context of green development. However, the uncoordinated supply chain hinders the utilization of straw energy. To improve the current situation caused by insufficient fuel supply of power plants and declining state subsidies. This paper takes the straw direct combustion power generation supply chain as the research object. Considering the economic cost of each stage and the carbon emission reduction in the whole life cycle of straw power generation. A decentralized decision model based on the Stackelberg game and a centralized decision model considering the overall revenue is constructed. By comparing the optimal solution of the model, we found that in the centralized decision model, the amount of straw flowing into the supply chain increased significantly and the total revenue was improved. Then, the revenue-sharing contract is introduced for coordination. The results indicate that the appropriate combination of the straw purchase price and revenue sharing coefficient can Pareto improve the revenue of each participating member, and achieve a win–win situation. Graphical Abstract: [Figure not available: see fulltext.]