Research on emission reduction in supply chain under the energy performance contracting mode

The paper focuses on the joint emission reduction problem in low-carbon supply chain with Energy Service Company's involvement in the `cap-and-trade' system. Two system dynamics model are included, cooperative R&D investment in emission reduction between the supplier and the manufacturer and Energy Service Company's R&D investment in emission reduction for the supply chain. We discuss the following key factors, Energy Service Company's sharing coefficient of the emission reduction benefits and carbon price. With the results of the models, comparative analysis of the cost, profits of the three companies and the emission reduction effects of the supply chain under different circumstances are presented, which can provide references for related decisions, to supply chain enterprises, Energy Service Company and the government.