Guang-Xin Gao et al. study a low-carbon SCF system based on online P2P lending under two scenarios: the manufacturer independently bears the CER investment cost and the retailer shares the cost with the manufacturer. The novelty of this article resides in the fact that we examine the P2P platform’s role in providing online financial service to low-carbon supply chains and explore the value of retailer’s cost sharing. The research has recently been published in IEEE Transactions on Engineering Management (rated 3 in the ABS ranking, FMS A level, A level in College of Economics and Management, NUAA), which is a flag academic journal in the field of engineering management, primarily publishing papers on the management of technical functions such as research, development, and engineering in industry, government, university, and other settings. Emphasis is on studies carried on within an organization to help in decision making or policy formation for RD&E.

The abstract of the paper is copied below.

Small- and medium-sized enterprises (SMEs) in low-carbon supply chains often face financing obstacles for improving carbon emission reduction (CER) level. Armed with unique advantages beyond offline financing methods, online peer-to-peer (P2P) lending can offer financing service for SMEs to alleviate capital constraints. This study investigates the equilibrium strategies under online P2P lending and effects of such a financing scheme in funding low-carbon supply chains through multi-level Stackelberg game models under two possible scenarios: the manufacturer independently bears CER investment cost and the retailer shares the cost with the manufacturer. In the models, a P2P platform first sets a service rate and charges a commission. Under a carbon cap-and-trade policy, a manufacturer borrows capital through the P2P platform and decides CER level. As the follower, a retailer determines a retail price. We find that the P2P platform's financial decision is a double-edged sword in influencing its own profit through commission and loan size. The cost sharing is alarmingly not always helpful for the supply chain finance system and improvement of CER level. Online P2P lending plays a complementary role to bank credits by bringing more social welfare and greater promotion degree of CER level.

Fig. 1. The sequence of events.

If you are interested in the research, please read the paper

Guang-Xin Gao*, Xiandong Li, Zhao Bai, Junhua Wang, et al. Financing a low-carbon supply chain through online peer-to-peer lending. IEEE Transactions on Engineering Management, 2024, 71: 5044-5056.

A full version of this article could be viewed at: https://doi.org/10.1109/TEM.2022.3208828.