Abstract:

A low-carbon supply chain system composed of manufacturers and retailers with both production and emission reduction financing constraints was built. Aiming at bank loaning and prepayment， manufacturers’ financing decision under carbon cap-and-trade was explored， and the effect of carbon abatement cost coefficient and carbon trading price on supply chain members’ financing decision and profit was analyzed. The results showed that when the prepayment interest rate is equal to the bank interest rate， whether carbon cap-and-trade is considered or not， prepayment will always bring greater profit to manufacturers. Therefore， prepayment is the best choice for manufacturers. When the financing rate is unequal， manufacturers’ financing methods will be affected by carbon cap-and-trade and carbon abatement cost coefficient. When the carbon abatement cost coefficient increases， the financing scale and supply chain members’ profit both decrease， while when the price of carbon increases， the financing scale and manufacturers’ profit both increase. In addition， carbon cap-and-trade increases manufacturers’ profit， but harms retailers’ profit.

Key words: double capital constraint, bank loaning, prepayment, carbon cap-and-trade, financing decision