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ORIGINAL RESEARCH article

Front. Energy Res.
Sec. Carbon Capture, Utilization and Storage
Volume 12 - 2024 | doi: 10.3389/fenrg.2024.1463076
This article is part of the Research Topic Carbon Neutrality and High-quality Development View all 5 articles

Green Degree Decision and Pricing Strategy of Dualchannel Supply Chains

Provisionally accepted
Xiaomeng Luo Xiaomeng Luo Yinze Wang Yinze Wang Yunliang Zhong Yunliang Zhong Chen Liu Chen Liu *
  • Southwestern University of Finance and Economics, Chengdu, China

The final, formatted version of the article will be published soon.

    With the prevalence of green supply chains, the government has basic requirements for companies’ green investments and outcomes while consumers increasingly favor green products. Thus, green degree decision has garnered significant attention from manufacturers. This paper incorporates green degree decisions into a dual-channel supply chain and adopts a Stackelberg model to analyze the green degree and pricing strategies under centralized and decentralized decisions. We find that, when the manufacturer only decides on price, dual-channel choice is always the optimal strategy under centralized decision-making; however, under decentralized decision-making, the dual-channel choice will be chosen only when the wholesale price is low. Considering green degree decision, both direct and indirect channel prices increase with the green degree, and the indirect channel price is more sensitive to changes in the green degree under centralized decision-making; and higher green degrees are always advantageous for the retailer, but the manufacturer's profit initially decreases and then increases as the green degree rises under decentralized decision-making. Moreover, the wholesale price is used as a strategic tool for the manufacturer to control the distribution channel, particularly when the green degree is not introduced, the manufacturer can always ensure the introduction of dual channels. Besides, higher consumers' environmental awareness is always beneficial to channel members, as it promotes channel prices and green degree. This study provides strategic insights for optimizing pricing and green degree decisions in dual-channel supply chains to achieve better economic and environmental outcomes.

    Keywords: Dual channel, Green degree, Pricing strategy, Green product, Stackelberg game

    Received: 11 Jul 2024; Accepted: 01 Oct 2024.

    Copyright: © 2024 Luo, Wang, Zhong and Liu. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

    * Correspondence: Chen Liu, Southwestern University of Finance and Economics, Chengdu, China

    Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.