Open Access Article

Title: Carbon reduction coordination and pricing strategy of a four-level supply chain under demand uncertainty

Authors: Qiang Shen; Xiuyun Hou

Addresses: College of Humanities and Urban-Rural Development, Beijing University of Agriculture, Changping, 102206, Beijing, China ' Beijing Changping Hospital of Integrated Chinese and Western Medicine, Changping, 102200, Beijing, China

Abstract: This study centres on how demand uncertainty impacts emission reduction in supply chains, premised on the Stackelberg game model. It delves into the collaborative emission reduction and pricing strategies of a four-echelon supply chain, including suppliers, producers, retailers and consumers, and meticulously examines the function of producers' carbon emission reduction subsidies and low-carbon product promotion subsidies in this process. The findings indicate that producers' reduction subsidies to suppliers and promotion subsidies to retailers play a coordinating role in supply chain emission reduction and product pricing, either directly or indirectly. The promotion subsidy for products with lower carbon emissions strengthens retailers' efforts to promote them and increases retail prices. Although these subsidies might lower producers' emission reduction levels and raise wholesale prices, they enhance the entire supply chain system's emission reduction.

Keywords: four-level supply chain; mission reduction subsidies; promotion subsidies; collaborative emission reduction.

DOI: 10.1504/IJEP.2026.152507

International Journal of Environment and Pollution, 2026 Vol.76 No.5, pp.36 - 57

Received: 29 Apr 2025
Accepted: 18 Sep 2025

Published online: 24 Mar 2026 *