Dynamic analysis of dual-market low-carbon supply chain: Considering government intervention and joint promotion

The increasingly severe global environmental problems have urged most people to incorporate environmental protection into their daily lives. Therefore, low-carbon supply chain management has become crucial. This paper studies a dual-market low-carbon supply chain operation in urban and rural markets with one manufacturer and two retailers. Three scenarios are considered: no government intervention, government intervention and joint promotion under government intervention. By establishing and solving three differential game models, we give the dynamic technological innovation, advertising and store promotion strategies of the manufacturer and two retailers and show the impact of government intervention and joint promotion on emissions reduction and performance. The results show that: first, government intervention can increase technology innovation efforts and decrease advertising efforts, while joint store promotion under government intervention has a positive effect on manufacturer's advertising and technological innovation efforts; second, government intervention may in-crease the profits of the manufacturer, although it will undoubtedly reduce the profits of the retailers, while joint store promotion under government intervention can further improve the profits of the manufacturer and re-tailers; third, compared to the preferences of rural consumers, manufacturer's technological innovation strategy relies more on the price and promotion preferences of urban consumers. Moreover, the preference differences between the two types of consumers have a weak impact on the manufacturer's advertising strategy, while the price preference of rural consumers has a more significant impact on the advertising efforts of the manufacturer. Overall, the research results can provide valuable suggestions for the members of the low-carbon supply chain in the dual market to improve the economic and environmental performance of the low-carbon supply chain.

Automated summary

This paper studies a dual-market low-carbon supply chain operation in urban and rural markets, involving one manufacturer and two retailers. The research finds that government intervention can increase technology innovation efforts and decrease advertising efforts, and joint store promotion under government intervention can further improve the profits of the manufacturer and retailers. Furthermore, the manufacturer's technological innovation strategy relies more on the price and promotion preferences of urban consumers. The research results provide valuable suggestions for improving the economic and environmental performance of the low-carbon supply chain in the dual market.