The impact of carbon emission regulations on B2C car-sharing platforms’ operating models

Abstract

Purpose

Although the impact of carbon emissions regulations is evident to upstream automakers, their influence on downstream B2C car-sharing platforms remains unclear. This article reveals the influence of carbon emission regulations on the performance of supply chain members. In particular, we focused on the decision of B2C car-sharing platforms.

Design/methodology/approach

We develop a three-stage dynamic game model consisting of an automaker, a B2C car-sharing platform and consumers.

Findings

The carbon emission cap has a critical threshold. Above this threshold, the regulation is ineffective for the platform’s operating model. Below it, the regulation affects the platform, moderated by customers' green awareness. The threshold initially decreases (weakly) and then increases in awareness. Effective caps reduce profits for the manufacturer, B2C car-sharing platform and supply chain, while ineffective caps see higher profits with increased awareness.

Originality/value

Firstly, this paper explores the impact of carbon emission caps on the operational strategies of B2C car-sharing platforms within the sharing economy, complementing existing research. Secondly, it identifies conditions where stricter caps prompt B2C car-sharing platforms to adjust their operational models and offers fresh insights for managers and departments responsible for carbon emission policy formulation. Thirdly, the study uncovers how carbon emission caps affect the performance of supply chain members, providing crucial managerial insights for sustainable operations.