Who should lead carbon emissions reductions? Upstream vs. downstream firms

Seungrae Lee, Seung Jae Park

Research output: Contribution to journalArticlepeer-review

28 Citations (Scopus)

Abstract

In this study, we consider two firms in a supply chain, namely an upstream firm and a downstream firm. The downstream firm sources products from the upstream firm for the further production and makes sales to the final consumers, and each firm strives to reduce carbon emissions. We find that one firm's support on another firm to reduce carbon emissions always benefits all players in the supply chain in terms of firm profit, consumer utility, and carbon emissions reduction, compared with the no supporting case. In addition, we show that the upstream firm's support on the downstream firm creates more benefit than the downstream firm's support on the upstream firm.

Original languageEnglish
Article number107790
JournalInternational Journal of Production Economics
Volume230
DOIs
Publication statusPublished - 2020 Dec

Bibliographical note

Publisher Copyright:
© 2020 Elsevier B.V.

All Science Journal Classification (ASJC) codes

  • General Business,Management and Accounting
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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