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Differential Game Analysis on Supply Chain’s Strategy of Carbon Emission Reduction R&D under Carbon Trading Policy
WEI Shoudao
Guangdong University of Finance, Guangzhou, China

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Abstract  Given carbon trading policy, a two-level supply chain consists of two suppliers and two manufactures. Each firm in the supply chain can choose one organization of carbon emission reduction R&D, including R&D competition, horizontal R&D cooperation, vertical R&D cooperation and general R&D cooperation. Taking into account dynamic change of carbon emission, four differential game models are constructed respectively. From the view of stock of carbon emission, supplier’s profit, manufacture’s profit and supply chain’s total profit, the optimal choice of carbon emission reduction R&D for each firm is analyzed. It is shown that general R&D cooperation is the optimal choice for the supplier; R&D competition is the optimal choice for the manufacture, but both horizontal R&D cooperation and vertical R&D cooperation can only be the second best choice for each firm.
Key wordscarbon trading policy      R&D competition      horizontal R&D cooperation      vertical R&D cooperation      general R&D cooperation     
Received: 09 October 2017     
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WEI Shoudao
Cite this article:   
WEI Shoudao. Differential Game Analysis on Supply Chain’s Strategy of Carbon Emission Reduction R&D under Carbon Trading Policy[J]. Chinese Journal of Management, 2018, 18(5): 782-.
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