Ke Jiang
School of Business, Nanjing University of Information Science & Technology, China
Dynamic Games and Applications Seminar
Assessing the impact of carbon quota allocation on emission reduction and advertising efforts in supply chain
Apr 10, 2025 11:00 AM — 12:00 PM (Montreal time)
Zoom webinar link
We analyze carbon quota allocation (grandfathering vs. benchmarking) in cap-and-trade systems on supply chain dynamics. Differential game models reveal benchmarking amplifies emission reduction and advertising efforts, accelerating product goodwill growth. Rising permit prices incentivize decarbonization but unevenly affect profits. Per-unit benchmarking fosters collaboration, benefiting all members, whereas grandfathering traps less eco-friendly firms in low-investment cycles.