Highlights Financing mechanism of supply chain is analyzed under the cap-and-trade regulation. Impacts of power structure on financing choice, profit and environment are studied. Financing equilibrium between bank loans and early payment is derived. Early payment could outperform bank loans for both firms. Profitability and environmental goals are in conflict in the manufacturer-led case.
Abstract This paper develops a low-carbon supply chain consisting of a capital-constrained manufacturer and a capital-abundant retailer where bank loans and early payment are investigated. Under each power structure, there always exists a financing equilibrium, i.e., early payment. Compared with bank loans, early payment could produce lower carbon emissions and higher social welfare in the retailer-led power structure; but it damages environment and social welfare, and leads to the conflict between profitability and environmental goals in the manufacturer-led case. Finally, impacts of power structure on financing mechanism, carbon emissions, and performance are analyzed to provide more managerial implications.
Impacts of financing mechanism and power structure on supply chains under cap-and-trade regulation
2020-04-21
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
Supply Chain Financing Decision and Financing Value Under Cap-and-Trade Regulation
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