Research on Carbon Emission Reduction Investment Decision of Power Energy Supply Chain—Based on the Analysis of Carbon Trading and Carbon Subsidy Policies

This study examines the carbon reduction investment decisions of the electric power energy supply chain considering carbon trading and carbon subsidy policies in China’s “dual carbon” context. By building a three-level supply chain system including electric power producers, retailers, and consumers,...

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Main Authors: Cheng Che, Huixian Zheng, Xin Geng, Yi Chen, Xiaoguang Zhang
Format: Article
Language:English
Published: MDPI AG 2022-08-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/15/17/6151
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author Cheng Che
Huixian Zheng
Xin Geng
Yi Chen
Xiaoguang Zhang
author_facet Cheng Che
Huixian Zheng
Xin Geng
Yi Chen
Xiaoguang Zhang
author_sort Cheng Che
collection DOAJ
description This study examines the carbon reduction investment decisions of the electric power energy supply chain considering carbon trading and carbon subsidy policies in China’s “dual carbon” context. By building a three-level supply chain system including electric power producers, retailers, and consumers, we discuss the optimal decision-making problem of the supply chain for three models of decentralized supply chain decision making without government subsidies, centralized supply chain decision making with government subsidies, and centralized supply chain decision making with government subsidies and carbon emission reduction cost sharing. Through model solving and further numerical simulations, the results showed that the increase in carbon emission reduction investment cost has a significant negative impact on power price and the total expected income of the supply chain. However, a reasonable level of government carbon emission reduction subsidy can effectively alleviate the increase in power price and improve the total expected income of supply chain. In addition, carbon mission reduction investment and supply chain cost allocation can effectively improve the carbon emission reduction level of the power supply chain, improve the income and enthusiasm of electric power producers, and realize the sustainable development of electric power energy consumption and the environment.
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spelling doaj.art-f81bed5f9d974617bde62ad7484ad7662023-11-23T13:01:12ZengMDPI AGEnergies1996-10732022-08-011517615110.3390/en15176151Research on Carbon Emission Reduction Investment Decision of Power Energy Supply Chain—Based on the Analysis of Carbon Trading and Carbon Subsidy PoliciesCheng Che0Huixian Zheng1Xin Geng2Yi Chen3Xiaoguang Zhang4School of Economics and Management, China University of Petroleum (East China), Qindao 266580, ChinaSchool of Economics and Management, China University of Petroleum (East China), Qindao 266580, ChinaSchool of Economics and Management, China University of Petroleum (East China), Qindao 266580, ChinaSchool of Economics and Management, China University of Petroleum (East China), Qindao 266580, ChinaSchool of Economics and Management, China University of Petroleum (East China), Qindao 266580, ChinaThis study examines the carbon reduction investment decisions of the electric power energy supply chain considering carbon trading and carbon subsidy policies in China’s “dual carbon” context. By building a three-level supply chain system including electric power producers, retailers, and consumers, we discuss the optimal decision-making problem of the supply chain for three models of decentralized supply chain decision making without government subsidies, centralized supply chain decision making with government subsidies, and centralized supply chain decision making with government subsidies and carbon emission reduction cost sharing. Through model solving and further numerical simulations, the results showed that the increase in carbon emission reduction investment cost has a significant negative impact on power price and the total expected income of the supply chain. However, a reasonable level of government carbon emission reduction subsidy can effectively alleviate the increase in power price and improve the total expected income of supply chain. In addition, carbon mission reduction investment and supply chain cost allocation can effectively improve the carbon emission reduction level of the power supply chain, improve the income and enthusiasm of electric power producers, and realize the sustainable development of electric power energy consumption and the environment.https://www.mdpi.com/1996-1073/15/17/6151energy enterprises investmentsustainable consumptioncarbon trading policycarbon subsidy policyelectric power supply chain
spellingShingle Cheng Che
Huixian Zheng
Xin Geng
Yi Chen
Xiaoguang Zhang
Research on Carbon Emission Reduction Investment Decision of Power Energy Supply Chain—Based on the Analysis of Carbon Trading and Carbon Subsidy Policies
Energies
energy enterprises investment
sustainable consumption
carbon trading policy
carbon subsidy policy
electric power supply chain
title Research on Carbon Emission Reduction Investment Decision of Power Energy Supply Chain—Based on the Analysis of Carbon Trading and Carbon Subsidy Policies
title_full Research on Carbon Emission Reduction Investment Decision of Power Energy Supply Chain—Based on the Analysis of Carbon Trading and Carbon Subsidy Policies
title_fullStr Research on Carbon Emission Reduction Investment Decision of Power Energy Supply Chain—Based on the Analysis of Carbon Trading and Carbon Subsidy Policies
title_full_unstemmed Research on Carbon Emission Reduction Investment Decision of Power Energy Supply Chain—Based on the Analysis of Carbon Trading and Carbon Subsidy Policies
title_short Research on Carbon Emission Reduction Investment Decision of Power Energy Supply Chain—Based on the Analysis of Carbon Trading and Carbon Subsidy Policies
title_sort research on carbon emission reduction investment decision of power energy supply chain based on the analysis of carbon trading and carbon subsidy policies
topic energy enterprises investment
sustainable consumption
carbon trading policy
carbon subsidy policy
electric power supply chain
url https://www.mdpi.com/1996-1073/15/17/6151
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