The coordination strategies of coal supply chain considering carbon emissions reduction

Abstract

The coordination strategies of a two-echelon coal supply chain consisting of a coal enterprise and a downstream enterprise are proposed considering market low-carbon preference and carbon emissions reduction. The cleaning and matching degree (CMD) is introduced to measure the quality of commercial coal which have influence on the production cost and energy consumption of the downstream enterprise. Stackelberg models are established to investigate the coordination strategies using cost-sharing contracts. We use backward induction to solve the models and analyse the optimal decisions in four scenarios. It is revealed that promoting CMD level can extend the market portion and realise more profit. The cost-sharing contract can coordinate the supply chain members, obtain profit Pareto improvement in certain condition of cost-sharing ratio and establish a win-win situation. Additionally, the emission reduction is greater than that under decentralised decision-making.

KEYWORDS:

• Coal supply chain
• cleaning and matching degree
• supply chain coordination
• carbon dioxide emission reduction
• cost-sharing contract

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data availability statement

Data available on request from the authors. The data that support the findings of this study are available from the corresponding author, L.-T. Zhao([email protected]), upon reasonable request.

Additional information

Funding

The authors gratefully acknowledge the financial support from the National Natural Science Foundation of China under [grant numbers 72002092, 72271028 and 71871020]. The funding numbered 71871020 had been expired. Dr. Zhao would like to change the funding.

Notes on contributors

Lei Cheng

Dr. Lei Cheng is a research fellow in Coal Industry Planning Institute. She obtained her PhD at University of Science and Technology Beijing. She has publications in Energy, Journal of Cleaner Production,etc. Her main research interests are energy economics, supply chain management and digital transformation. E-mail: [email protected]

Lu-Tao Zhao

Prof. Lu-Tao Zhao received the Ph.D. degree in management science and engineering from Chinese Academy of Sciences, Beijing, China, 2012. He is a professor in School of Management and Economics and deputy director of the Centre for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing, China. His current research interests include energy economics, energy security and data science. E-mail: [email protected]

Feng-Rong Li

Feng-Rong Li is currently a graduate student from School of Management and Economics, Beijing Institute of Technology, Beijing, China. Her current research interests are in energy economics, green finance and renewable energy. E-mail: [email protected]

Ke-Xin Yang

Ke-Xin Yang is currently a graduate student from School of Management and Economics, Beijing Institute of Technology, Beijing, China. Her current research interests are in energy economics, emission trading system and agent-based simulation. E-mail: [email protected]