Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Emission Reduction and Channel Decisions in a Two-Echelon Supply Chain Considering Service Spillovers

Version 1 : Received: 31 August 2023 / Approved: 31 August 2023 / Online: 1 September 2023 (02:38:27 CEST)

A peer-reviewed article of this Preprint also exists.

Chen, X.; Wang, J.; Xu, P.; Walker, T.; Yang, G. Emission Reduction and Channel Decisions in a Two-Echelon Supply Chain Considering Service Spillovers. Mathematics 2023, 11, 4423. Chen, X.; Wang, J.; Xu, P.; Walker, T.; Yang, G. Emission Reduction and Channel Decisions in a Two-Echelon Supply Chain Considering Service Spillovers. Mathematics 2023, 11, 4423.

Abstract

The combination of e-commerce and the green economy allows enterprises to distribute their green products directly to consumers through Internet channels. This paper investigates the impact of service spillovers on emission reduction and channel decisions in a two-echelon supply chain,in which the supplier is a Stackelberg leader and the retailer is a follower.By comparing the equilibrium outcomes of the single-channel and dual-channel supply chain in a setting with and without retail services, we observe that the supplier prefers to encroach on the market when services that retail locations provide largely spillover to and benefit the direct sales channel. Contrary to popular belief, a higher degree of service spillovers is beneficial for the retailer to get more returns under the dual-channel structure, whereas supplier encroachment will lead to a decline in the service level if the spillover degree is relatively low. In addition, the emission reduction level of products under supplier encroachment is always higher than that employed in the single-channel structure if consumers have both low-carbon preference and high degree of service sensitivity. Furthermore, we extend the equilibrium decisions under a carbon cap-and-trade (CCT) mechanism; the results fully verify the above conclusions. Interestingly, the implementation of a carbon price not only motivates carbon emission abatement and supplier encroachment, but also helps achieve a win-win outcome for supply chain members when service spillovers happen.

Keywords

E-commerce; Supplier encroachment; Service spillover;Emission reduction; Carbon cap-and-trade (CCT)

Subject

Business, Economics and Management, Business and Management

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