Research on two-stage supply chain to establish the carbon emissions trading alliance

As more and more enterprises are willing to join the carbon emissions trading mechanism, it is necessary to explore a two-stage supply chain which includes upstream and downstream enterprises how to formulate the enterprise plans to reduce emissions. Through the study of internal carbon trading price of the carbon emissions trading alliance, we have a deep discussion for the decision of establishing the carbon emissions trading alliance. The results show that the upstream and downstream enterprises in the supply chain have respective optimal pricing and maximum profits before and after establishing the carbon emissions trading alliance. They choose to establish the carbon emissions trading alliance only in their respective alliance´s internal carbon trading price range. Therefore, enterprises should obtain a mutually beneficial internal carbon trading price through negotiation to promote the establishment of carbon emissions trading alliance.