Impact of Carbon Sensitivity and Market Forecasting on Carbon Emissions Scheduling in Allocation and Product Pricing Strategies

Low-carbon supply chain is the focus of the business necessary for production and operation, how to allocate the emission reduction of the supply chain and the pricing of low-carbon products are the focus of this article, therefore, this paper built a two-stage supply chain decision model including one manufacturer who is the leader and one retailer who is follower. Based on the demand forecasting and carbon sensitivities difference, we studied the decisions of supply chain in four game scenarios, which include the supply chain carbon emission reduction target allocation and product pricing. The results show that differences in carbon sensitivities have a significant impact on the allocation of emissions, and when the less carbon-less carbon emitters is the allocator, it allocates all of the emissions reductions to the more sensitive one, and the product wholesale price and retail price, as well as the profit expectations of manufacturers and retailers, are all positively affected by their carbon-sensitiveness. At the same time, the joint forecast between manufacturers and retailers can balance the profits of supply chain members and reduce the retail prices of products.