Design of a carbon footprint-based carbon subsidy impact mechanism for collaborative carbon reduction in new energy vehicle supply chains

This study constructs a collaborative carbon reduction decision-making model for the supply chain of new energy vehicles under the carbon footprint-based carbon subsidy policy. It is found that the carbon footprint carbon subsidy policy reduces the carbon emissions of each new energy vehicle in its whole life cycle more than the traditional carbon subsidy policy. Higher carbon reduction in the used segment of new energy vehicles under carbon footprint-based carbon subsidy policy With the increase of carbon subsidy under carbon footprint, the carbon emission reduction in the whole life cycle of the product shows a trend of increasing and then decreasing. Second, the profits of new energy vehicle manufacturers with carbon footprint-based carbon subsidy policies are smaller than those with traditional carbon subsidy policies. Third, the selling price and manufacturers' profits of new energy vehicles decrease when the carbon subsidy per unit is increased. On the other hand, product sales, supplier profits, and total social welfare increase with the increase of carbon subsidy per unit. Fourth, the profits of supply chain firms increase with the utility of the products to consumers and the innovative ability to reduce emissions in the used segment.