In this paper, based on the concept of green supply chain management, we construct a two-level supply chain game model consisting of an upstream manufacturer and a downstream retailer, where the downstream retailer is the leader and the upstream manufacturer is the follower. In addition, the upstream manufacturer in this model invests in carbon-neutral technology innovations that reduce production costs, lower carbon emissions, and increase market demand for their products. Based on this game model, the optimal equilibrium outcome of the supply chain is solved, and the influences of the carbon-neutral sensitivity coefficient, the investment coefficient for carbon-neutral technology innovation, carbon emission reduction efficiency, and the carbon-neutral technology cost reduction efficiency on the operation decision of supply chain firms are examined. The results show that (1) the consumer carbon neutrality sensitivity factor has a positive impact on the carbon neutral strategy, product ordering, and performance of supply chain firms. (2) The investment factor of carbon-neutral technology innovation hurts the carbon-neutral decision, product ordering, and performance of supply chain firms, while the pricing strategy also has a positive correlation impact with the carbon-neutral sensitivity factor of consumers as the carbon-neutral technology innovation investment factor increases. (3) The cost reduction efficiency of carbon-neutral technologies promotes carbon-neutral decisions, product ordering, and performance of supply chain firms. However, the pricing strategy is also closely related to market size and correlates negatively. (4) The carbon emission reduction efficiency per unit product is positively correlated with the carbon neutral decision, product ordering, and performance of supply chain firms, while the pricing strategy is also linked to market size and has a negative correlation.

Fan Jianchang, Chen Shuangshuang. The Research on Decisions of Carbon Neutral Technology in A Retailer-led Green Supply Chain Based on Cost Reduction and Carbon Trading. Academic Journal of Business & Management (2023) Vol. 5, Issue 13: 9-15. https://doi.org/10.25236/AJBM.2023.051302.

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