Decision of Green Financing and Production in Supply Chain Considering Carbon Emission

Yan Sijia

Abstract

Under the dual-carbon background, carbon asset pledge financing (CAPF), as a new financing strategy in the carbon trade market, was introduced to promote carbon emission reduction. Compared to traditional financing, green financing has carbon emission requirements and will lower interest rates. Supply chain enterprises can solve the cost problem caused by emission reduction through CAPF. Therefore, the enterprises at the production end of the supply chain will choose the optimal production and carbon emission reduction plan that  maximizes their own interests according to the financing mechanism. The goal of this project is to explore the optimal green financing and production options for supply chains based on a game-theoretic approach, and to develop a supply chain financing and production decision model that takes into account the asset constraints of the supply chain members and the low-carbon preferences of consumers. This project will focus on portraying these new financing models and comparing the impacts and effects of traditional and new financing methods on the production side of the supply chain and carbon emission reduction.