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Emission Reduction of Low-Carbon Supply Chain Based on Uncertain Differential Game

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Abstract

This paper studies the low-carbon production problem based on an uncertain differential game. In a two-stage low-carbon product supply chain consisting of a single supplier and a single manufacturer, we construct an uncertain differential equation by taking the emission reduction efforts of the supplier and manufacturer as decision variables and product emission reduction as a state variable. Based on the uncertain differential game, we obtain the supply chain’s dynamic equilibrium strategy, emission reduction, and revenue trajectory under non-cooperative and cooperative situations. By comparison, cooperation leads to more effort on both sides of the supply chain, more carbon emission reduction, and higher profits than non-cooperative ones. To further illustrate the supply chain game in the cooperative situation, we give different income situations under the two distribution methods of Nash bargaining solution and Shapley value, respectively.

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Data Availability Statement

The authors confirm that the data supporting the findings of this study are available within the article.

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Acknowledgements

The authors gratefully acknowledge the financial support provided by the National Natural Science Foundation of China (No. 62303115), the Fundamental Research Funds for the Central Universities in UIBE (No. 22QN03), and the Scientific Research Laboratory of AI Technology and Applications in UIBE.

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Authors and Affiliations

  1. University of International Business and Economics, Beijing, 100029, People’s Republic of China

    Xiangfeng Yang & Peng Zhang

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  1. Xiangfeng Yang
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Correspondence to Xiangfeng Yang.

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Communicated by Mauro Pontani.

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Yang, X., Zhang, P. Emission Reduction of Low-Carbon Supply Chain Based on Uncertain Differential Game. J Optim Theory Appl 199, 732–765 (2023). https://doi.org/10.1007/s10957-023-02305-1

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