Since dual channel supply chain has become one of the main modes of supply chain, its research has acquired great significance. This paper constructs a low-carbon dual channel supply chain composed of one manufacturer and one retailer. The manufacturer produces low-carbon product and high carbon product with substitution relationship. The retailer sells high carbon product in traditional channel. The manufacturer also sells low-carbon product in direct channel. The government, manufacturer and retailer conduct a three-level Stackelberg game. This paper studies the optimal decisions of the government, manufacturer and retailer under the three modes of carbon tax + subsidy, carbon tax only and subsidy only. It has been found that for social welfare, the carbon tax + subsidy model is higher than the subsidy model and carbon tax model. For manufacturer profit, the subsidy mode is the highest, followed by the carbon tax + subsidy mode. For retailer profit, the carbon tax + subsidy model is equal to the carbon tax model. The increase in the proportion of consumers who prefer high carbon product in the total market or product cost of low-carbon product, will increase the profit of traditional channel and reduce the profit of direct channel.
Copyright: © 2023 Xu et al. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.