RETAILER STRATEGIES FOR DRIVING SUPPLIER CARBON FOOTPRINT REDUCTION VIA INTERNAL CARBON PRICE

Date

2025-11-27

Author

Sadıkoğlu, Dilara

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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Retailers are expected to report and actively reduce their carbon emissions due to increasing pressure from regulatory requirements and stakeholder demands. The need to reduce carbon footprints in supply chains leads retailers to utilize strategic tools to influence their suppliers’ operations. This study examines retailers’ internal carbon price strategies to drive the supplier carbon footprint reduction. We develop a game theoretic model that captures the interaction between retailers and suppliers, under the internal carbon price of the retailer and the spillover threat between the supplier and private label. Our analysis demonstrates that, in most situations, the internal carbon price helps reduce the supplier’s carbon footprint. However, introducing a private label in the market can have an adverse effect on the carbon footprint reduction. To utilize private label effectively, its carbon footprint should fall within certain thresholds. This research contributes to sustainable supply chain management by providing a framework for retailer-driven carbon reduction strategies and highlighting important remarks for retailers in determining internal carbon price and managing private label.

Subject Keywords

Supply Chain Management, Carbon Footprint Reduction, Stock-out Based Spillover, Newsvendor Problem

URI

https://hdl.handle.net/11511/118269

Collections

Graduate School of Natural and Applied Sciences, Thesis