Analyzing the Impact of Government Subsidies on Carbon Emission Mitigation Considering Carriers’ Price-and-Service Competition and Green Shippers
Listed in
This article is not in any list yet, why not save it to one of your lists.Abstract
High operational costs discourage shipping carriers from adopting green technologies, thereby exacerbating carbon emissions. Government subsidies can address the financial predicament faced by carriers. However, previous studies have overlooked whether governmental subsidies can help mitigate carbon emissions with intensified competition in both price and service between carriers, alongside rising environmental consciousness from shippers. To fill in this gap, game-theoretic models are developed to explore optimal strategies for each partner of a shipping supply chain under three scenarios. Optimal solutions are derived through model analysis, followed by numerical analysis. Our findings are: (1) The provision of governmental subsidization is conducive to a significant decrease in carbon emission with carriers’ price-and-service competition and shippers’ green awareness; (2) Freight prices, profits and social welfare are all negatively related to government subsidies in a certain price-competitive environment; (3) Price competition intensity is not conducive to carbon emission reduction, but can benefit prices, and social welfare; (4) Both low-carbon preference and intensified service competition jointly benefit profits, and social welfare, but are detrimental to carbon emission reduction. Our paper provides several meaningful insights for governments and shipping companies in formulating emission reduction strategies, contributing to environmental benefits and supporting the achievement of sustainability goals.