Dynamic Game on Carbon Emission Reduction in Intermodal Supply Chain Shu-xia LI *, Si-fan SUN, Yi-quan WANG and Hai-yang XIA

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1 016 d Iteratioal Coferece o Sustaiable Eergy ad Eviroetal Egieerig (SEEE 016 ISBN: Dyaic Gae o Carbo Eissio Reductio i Iterodal Supply Chai Shu-xia LI *, Si-fa SUN, Yi-qua WNG ad Hai-yag XI Departet of Maageet Sciece ad Egieerig, East Chia Uiversity of Sciece ad Techology, Shaghai 0037, Chia *Correspodig author Keywords: Iterodal trasportatio, Vertical eissio reductio gae, Carbo eissio tax bstract With the developet of iteratioal trade, iterodal operatios have becoe ore ad ore iportat i goods trasportatio, i order to show the effect of carbo eissio tax o a arie-lad iterodal supply chai, this paper use dyaic gae theory to get a sub-gae Nash equilibriu, ad the result of this paper show that the carbo eissio tax will lead to sea trasport ad lad trasport to reduce the carbo eissio of every goods, But the carbo tax is ot ecessarily guarateed to reduce the total aout of carbo eissios eawhile, oe part s reductio of carbo eissio ay icetive the other part to reduce carbo eissio Itroductio With the developet of electroic coerce ad iteratioal trade, iterodal trasport has becoe a ievitable tred of supply chai There were so ay studies about iterodal trasportatio, but ost of the article is cofied to path plaig ad terial locatio proble, a optial rail-truck cotaier terial locatios proble o the Europea etwork is studied i S Libourg [1] Meisel [] presets a odel ad solutio approach for cobiig productio ad trasportatio plaig i a iterodal etwork Soe studies have also bee cobied iterodal with other topics, Xie [3] proposes a iter odal locatio ad routig odel for hazardous aterials trasportatio Ki [4] studies the break-eve distace of iterodal freight trasport systes The iterodal trasport is so popular ot oly because ecooics, efficiecy but also due to its ecological friedliess, the cobiatio of various odes of trasport has retaied eco advatages of differet kids of trasportatio Few studies have explored carbo eissio i iterodal trasport Bouchery studied carbo eissios ad odal shift i iterodal etwork [5], Chu-Hsiug Liao Copared carbo dioxide eissios of truckig ad iterodal cotaier, It is proved that the iterodal trasport is ore ecofriedly [6] I order to urge the supply chai reduce carbo eissio, the goveret will develop a series of easures, such carbo eissio tax [7], Gree supply chai is the product of these easures, Bruo aalyzed the copositio of the gree supply chai of autoobile idustry [8] Lhoussaie itegrate logistics outsourcig with gree supply chai desig ad proposed a ulti-objective ulti-period prograig odel to solve the proble [9] Xig K He explores the carbo footprit of the gree supply chai [10] The above researches about carbo eissios i iterodal trasport are fro the outside, but igore the decisio ade by various parts i the supply chai, ad the iteractio betwee each parts were seldo etioed So, We ai to explore the gae results betwee differet parts i iterodal supply chai about carbo eissio reductio, ad get excellet eissio reductio plas to provide referece for the eterprise Methods We assue that goods will be set to cosuers by the supplier, but the oly eas for trasportatio is the lad trasportatio by truck They eed outsourcig providers to provide arie trasportatio by ship, so the iterodal supply chai i this paper is a two stages supply

2 chai cosists of arie trasportatio ad lad trasportatio, at the first stage, goods will be trasported by boat fro oe dock to aother dock ad the it will be delivered to custoers through trucks The goveret will ipose a carbo tax o carbo eissios fro the whole trasport process Supplier's reveue coes fro sellig goods to cosuers, but it has to pay the cost of shippig by the outsourcig provider ad the carbo eissio tax of the lad trasportatio part, outsourcig provider s profits coes fro supplier s payet, they also eed to pay for carbo tax of the arie part Through akig copariso betwee the profits of the two successive parts i the iterodal trasportatio, we use the reverse iductio to carry o the dyaic gae to get the factors that ifluece the eissio reductio ad the utual ifluece betwee arie trasportatio ad lad trasportatio, ad fially highlight how the carbo eissios tax effect carbo eissio t first we eed to itroduce carbo tax, cosuer prefereces, bateet cost ad other factors to get the profit of two trasportatio odes respectively, the accordig to the Nash equilibriu priciple to get the correspodig reductio rage of lad trasport, ad whether arie trasport s reductio of carbo eissios will ipact lad trasport s eissio reductio, ad what easures the lad trasport will evetually take d the, i the foudatio of the best trasportatio volue ad carbo reductio volue, we could get the arie trasportatio profits, ad we will fid out the relatioship betwee the arie trasportatio s optial carbo eissio ad lad trasport eissios reductio techology, ad what easures the arie trasport will fially take Cosiderig the argial abateet costs rise, the cost of eissio reductio icreases with the growth of the eissio reductio quatity We assue that the bateet cost of arie r1 r trasportatio is, ad the eissios reductio aout is, for lad trasport they are ad, with the eissio reductio, Uit cargo s carbo eissios will be reduced, ad carbo tax will also be reduced, while cosuers i favor of low carbo products, so eissio reductio will lead to icreased dead We set dead fuctio as p = a bx + k( + The paraeters are set as follows: Network: c :The goveret's tax rate o carbo eissios X :The trasportatio aout i the whole supply chai 1 :Carbo eissios fro arie trasport uit products : Carbo eissios fro lad trasport uit products w :the icoe brought by trasportatio oe uit goods i arie trasportatio d 1 :Marie trasportatio cost of uit product d :lad trasportatio cost of uit product p = a bx :Cosuer liear iverse dead fuctio, a ad b are costat r 1 :The eissio reductio cost coefficiet of arie trasportatio r :The eissio reductio cost coefficiet of lad trasportatio :The eissio reductio aout of arie trasportatio :The eissio reductio aout of lad trasportatio k :Cosuer preferece coefficiet

3 1 :The profit of outsourcig provider :The profit of supplier Dyaic gae eas the actios of the participats is i the order, the latter ca observe the forer s actio ad ake choices deped o it, i this article, arie trasportatio will deterie whether to reduce eissios firstly, ad the lad trasport will deterie their ow trasport volue ad reduce eissios volue accordig to the iforatio they ve got Figure 1 Decisio process of outsourcig provider ad supplier Picture 1 depicts the 4 scearios that we eed to cosider We take sceario1 as a exaple, i sceario1 both arie trasportatio ad lad trasportatio do t reduce carbo eissio The profit of outsourcig provider icludes the icoe brought by trasportatio ad trasportatio cost ad carbo eissio tax 1 = ( w d1 X c1 = ( w d1 c1 X (1 fter supplier s goods will be sold to custoers, but suppliers ust pay boat ret fee, so the profit they ca get is: = ( P w d X c d it ca be trasfer to = ( a w d c X bx I order to get the axiu beefit, we take this forula as a fuctio of X ( = a w d c bx = 0 (3 d dx So the best trasportatio aout is ( a w d c X = b a w d The we let c = w d, 1 c1 = B X =, we ca get b (4

4 B = BX = So the profit of outsourcig provier is 1 b, ad the profit of lad trasportatio or = X bx = supplier is Sceario: the carbo eissio reductio of arie trasportatio is 0, ad the carbo eissio reductio of arie trasportatio is The profit of arie trasportatio or outsourcig provider: = ( w d X c X = ( w d c X The profit of lad trasportatio or suppliers: (5 r = ( p w d X c( X Isert p = a bx + k ito the forulatio we ca get: (6 r = ( a w d c + k + c X bx (7 ( k + c X = + b (8 B[ + ( k + c ] [ + ( k + c ] r 1 = = So: b ad ; We ca get profits of outsourcig provider ad lad trasportatio or supplier of four scearios i this way ad put it i table 1 Table 1 Profits of outsourcig provider ad supplier Marie lad Eissio reductio No Eissio reductio Eissio reductio B ( b, B[ + ( k + c ] b, [ + ( k + c ] r = No Eissio reductio ( B + c( + k r1 b ( + k, ( B + c[ + k + ( k + c ] r1 b [ + ( k + c + k] r Both of the desire to fid the ost suitable way to pursue their iterests i the gae atrix, the trasportatio cost per uit coodity, the rate of carbo eissio, ad carbo eissio reductio cost coefficiet are fixed, but the eissio reductio aout could chage for both sides, Results The goveret hopes Outsourcig provider ad supplier will have a prisoer's dilea to reduce carbo eissio together By aalyzig the above profit table, accordig to the priciple of Nash equilibriu, we could fid out that:

5 I the case of the goveret iposed carbo tax, whether arie eissio reductio or ot, the optial trasportatio volue after the reductio of lad trasport trasportatio volue is larger tha the oe for o reductio, supply chai ust pursue ore trasportatio aout to achieve higher efficiecy, so the outsourcig provider hope supplier reduce eissios to get ore trasportatio ad brig ore profit for theselves; i order to get higher beefit, supplier also wat outsourcig provider reduce carbo eissio No atter outsourcig provider reduce eissio or ot, supplier will take eissio reductio, but due to techical costraits, they have to reduce eissio i a certai rage to esure the icrease their ow profits, whe the outsourcig provider do t reduce eissios reductio, the iterval is ( k + c (0, ad [ br the optial trasport volue, ad the optial eissio reductio volue r ( k + c are [ br ad [ br, whe the outsourcig provider reduce eissios, the ( + k( k + c (0, iterval is [ br,the optial trasport volue ad the optial eissio reductio r ( + ( k + c = volue are [ br ad [ br If goveret iposes carbo tax o supply chai, eawhile, eissio reductio techology is still very low, the outsourcig provider will choose eissio reductio i order to esure their ( Bk + c r profits ad the reductio rage is 0 < < the optial eissio reductio r 1[ br ( k + c ] kcr ( c + Bk r volue is = r 1[ br ( k + c ] kcr The eissio reductio aout of outsourcig provider is closely related to the optial eissio reductio of lad trasport, ad the saller the eissio reductio cost coefficiet of supplier, the greater the eissio reductio aout of out sourcig provider ckowledgets This research was supported by the Natioal Natural Sciece Foudatio of Chia uder Grat , , ad ,ad the Special Fud fro the Cetral Collegiate Basic Scietific Research Bursary Refereces [1] S Libourg, B Jourqui Optial rail-road cotaier terial locatios o the Europea etwork [J] Trasportatio Research Part E ( [] Frak Meisel, Thoas Kirschstei, Christia Bierwirth Itegrated productio ad iterodal trasportatio plaig i large scale productio distributio-etworks [J] Trasportatio Research Part E 60 ( [3] Yuachag Xie, Wei Lu, We Wag, Luca Quadrifoglio ultiodal locatio ad routig odel for hazardous aterials trasportatio[j] Joural of Hazardous Materials 7 8 ( [4] Ki, NS, Va Wee, B, 011 The relative iportace of factors that ifluece the break-eve distace of iterodal freight trasport systes[j] Joural of Trasport Geography 19 (4,

6 [5] Bouchery Y, Frasoo J Cost, carbo eissios ad odal shift i iterodal etwork desig decisios[j] Iteratioal Joural of Productio Ecooics, 014, 164: [6] Liao C H, Tseg P H, Lu C S Coparig carbo dioxide eissios of truckig ad iterodal cotaier trasport i Taiwa[J] Trasportatio Research Part D Trasport & Eviroet, 009, 14(7: [7] Kuo T C, Hog I H, Li S C Do carbo taxes work? alysis of goveret policies ad eterprise strategies i equilibriu[j] Joural of Cleaer Productio, 016 [8] Bruo Michel Roa Pais Seles, Charbel José Chiappetta Jabbour, Rosa Maria Dagelico The gree bullwhip effect, the diffusio of gree supply chai practices, ad istitutioal pressures: Evidece fro the autootive sector[j] Iteratioal Joural of Productio Ecooics, 016, 18: [9] Lhoussaie ekassi, Daoud ït-kadi, Nidhal Rezg Itegratio of logistics outsourcig decisios i a gree supply chai desig: stochastic ulti-objective ulti-period ulti-product prograig odel[j] Iteratioal Joural of Productio Ecooics, 016, 18: [10] Xig K, Qia W, Zaa U Developet of a cloud-based platfor for footprit assesset i gree supply chai aageet[j] Joural of Cleaer Productio, 016, 139:191 03