Research on Carbon Emissions Reduction Strategy Considering Government Subsidy and Free Riding Behavior.

ABSTRACT

Government subsidy can greatly encourage supply chain enterprises to reduce carbon emissions. To quickly occupy the market, supply chain enterprises form alliances. However, enterprises in the alliance have speculative psychology, and the impact of such free riding behavior on the carbon emissions reduction willingness of supply chain enterprises is still unclear. In this article, government subsidies and free riding behavior parameters are introduced to build a carbon emissions reduction decision model for the government, manufacturers, and suppliers, and the impact of government subsidies and free riding behavior on the decision making of supply chain enterprises is analyzed through evolutionary game theory. The analysis shows that government subsidies have an incentive effect on carbon emissions reduction of supply chain enterprises. After the market stabilizes, even if the government subsidies are gradually withdrawn, the carbon emissions reduction of supply chain enterprises still converges to Pareto optimal equilibrium. The influence of free riding behavior on supply chain enterprises depends on the carbon emissions reduction profit. When the carbon emissions reduction profit is different, the decision of manufacturers and suppliers will be different. The above conclusions provide a reference for governments to strengthen control or enterprises to make decisions on carbon emissions reduction.