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Strategies for Capital Constrained Timber and Carbon Sink Supply Chain under the Cap-and-Trade Scheme
| Content Provider | MDPI |
|---|---|
| Author | Yang, Xinyue Song, Ye Sun, Mingjun Peng, Hongjun |
| Copyright Year | 2020 |
| Description | We consider a capital constrained timber and carbon sink supply chain under the cap-and-trade scheme, where the forest company produces timber and carbon sink. We consider two subsidy modes: financing subsidy to the carbon sink forests and financing subsidy to the manufacturer’s emission reductions. We apply a Stackelberg model and mainly consider the impact of subsidies on the profits and the strategies of the supply chain members. The results show that when the government gives a financing subsidy to the carbon sink forests, it is conducive to promoting the expansion of carbon sink forests, as well as the enhancement of the forest company’s profit. However, a larger supply of carbon sinks generates a lower price, which leads to the manufacturer reducing the technical emission reduction level and purchasing more carbon emission rights instead. On the other hand, when the manufacturer receives a financing subsidy for the technical emission reduction costs, its production becomes cleaner than before, and the profits of the forest company and the manufacturer increase. |
| Starting Page | 4380 |
| e-ISSN | 20711050 |
| DOI | 10.3390/su12114380 |
| Journal | Sustainability |
| Issue Number | 11 |
| Volume Number | 12 |
| Language | English |
| Publisher | MDPI |
| Publisher Date | 2020-05-27 |
| Access Restriction | Open |
| Subject Keyword | Sustainability Agricultural Economics Financing Subsidy Supply Chain Green Finance Cleaner Production |
| Content Type | Text |
| Resource Type | Article |
