53 / 2024-04-17 20:45:39

Financing Decisions in Capital-constrained Supply Chains Considering Uncertain Emission Reduction Outputs and Blockchain Technology Applications

blockchain technology; uncertain emissions reduction outputs; floating interest rate; bank financing mode; mixed financing mode.

This paper explores a low-carbon supply chain framework comprising a capital-constrained manufacturer and a retailer operating under cap-and-trade regulation. The manufacturer can obtain financing support for both production and carbon emission reduction for either Bank Financing (BF) mode or Mixed Financing (MF) mode. The incorporation of blockchain technology is posited to enhance the transparency of uncertain emission reduction data within the supply chain. This enhanced transparency facilitates the adoption of floating interest rates by banks correlated with emission reductions, which can be executed via smart contracts. Four models are analyzed: BF and MF, both with and without the implementation of blockchain technology. The findings indicate that the utilization of blockchain technology yields higher profits for supply chain partners under both BF and MF modes when the cost associated with blockchain technology is moderate. When manufacturers do not adopt blockchain technology, they prefer the BF mode under intermediate bank interest rates. Conversely, when manufacturers utilize blockchain technology, the strategic decisions of both manufacturer and retailer between BF and MF modes are independent of the associated cost. Additionally, the BF mode is preferred when the trigger point for emission reduction output is moderate and the cost of adopting blockchain technology is low.