Proceedings of the 2026 4th International Conference on Digital Economy and Management Science (CDEMS 2026)

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Supply Chain Emission Reduction and Financing Decisions under Carbon Cap Regulation with Government Subsidies

Authors
Zongqiu Zhang1, *, Junping Shao1, Yanan Sun2
1School of Business, Suzhou University of Science and Technology, Suzhou, 215009, China
2Anwood Logistics System Co, Ltd, Suzhou, 215021, China
*Corresponding author. Email: zzq2278482745@163.com
Corresponding Author
Zongqiu Zhang
Available Online 2 June 2026.
DOI
10.2991/978-94-6239-699-9_36How to use a DOI?
Keywords
Carbon cap policy; Capital constraint; Government subsidy; Carbon reduction
Abstract

This paper studies a low-carbon supply chain with a capital-constrained manufacturer and a retailer. Under a carbon cap, we examine how credit and product subsidies affect emission reduction and financing decisions. Four game models are constructed and solved using KKT conditions for green credit and advance payment financing. The impacts of carbon cap, subsidies, and consumer low-carbon preference on supply chain decisions are analyzed. The main findings are as follows. (1) Two emission constraint scenarios exist: stringent (mandatory) and lenient (achievable via internal decisions). (2) Consumer low-carbon preference and subsidy levels are key factors affecting the carbon cap and emission reduction. (3) Both subsidies positively affect supply chain decisions and social welfare, with stronger effects under advance payment financing. (4) Advance payment financing is always the manufacturer’s preferred strategy.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2026 4th International Conference on Digital Economy and Management Science (CDEMS 2026)
Series
Advances in Economics, Business and Management Research
Publication Date
2 June 2026
ISBN
978-94-6239-699-9
ISSN
2352-5428
DOI
10.2991/978-94-6239-699-9_36How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Zongqiu Zhang
AU  - Junping Shao
AU  - Yanan Sun
PY  - 2026
DA  - 2026/06/02
TI  - Supply Chain Emission Reduction and Financing Decisions under Carbon Cap Regulation with Government Subsidies
BT  - Proceedings of the 2026 4th International Conference on Digital Economy and Management Science (CDEMS 2026)
PB  - Atlantis Press
SP  - 341
EP  - 354
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-699-9_36
DO  - 10.2991/978-94-6239-699-9_36
ID  - Zhang2026
ER  -