Emission Reduction Decision of Agricultural Supply Chain Considering Carbon Tax and Investment Cooperation

Abstract As the core of civilian production and an indispensable part of the national economy, the agricultural industry plays a role in many aspects, but it also generates a large amount of carbon emissions that are harmful to the environment. A game model is established to compare the optimal decisions and profits of retailers under three situations: whether to invest in emission reduction for manufacturers or not, and whether to invest in emission reduction under decentralized decision-making or centralized decision-making. The results show that when manufacturers cooperate with retailers, with the increase of investment proportion, carbon emission reduction, market demand, manufacturer's profit and retail price show an upward trend, while retailer's profit decreases. However, when manufacturers and retailers form a centralized supply chain, the overall profit of the supply chain can be improved. Therefore, when manufacturers and retailers cooperate to form a centralized supply chain, the supply chain can be optimized to achieve the dual objectives of protecting the environment and increasing profits.