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Pricing Strategy for Marine Products under the Carbon Labelling System

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ABSTRACT Wang, S.T.; Tao, S., and Zhao, Y.H., 2020. Pricing strategy for marine products under the carbon labelling system. In: Al-Tarawneh, O. and Megahed, A. (eds.), Recent Developments of Port,… Click to show full abstract

ABSTRACT Wang, S.T.; Tao, S., and Zhao, Y.H., 2020. Pricing strategy for marine products under the carbon labelling system. In: Al-Tarawneh, O. and Megahed, A. (eds.), Recent Developments of Port, Marine, and Ocean Engineering. Journal of Coastal Research, Special Issue No. 110, pp. 108–111. Coconut Creek (Florida), ISSN 0749-0208. The carbon labelling system can realize the transparency of carbon emission sources and guide consumers to purchase lower-emission products. This paper attempts to study the pricing strategy of marine products under the carbon labelling system. To this end, it establishes a decentralized decision pricing model and a centralized decision pricing model for marine products with the carbon tax policy and no carbon tax policy respectively. Then, the analysis of examples was conducted to study the carbon emissions of unit product and retail price changes of marine products under the decentralized decision pricing model and centralized pricing decision model with or without the carbon tax policy. The research results show that when the value of k is constant, the retail pricing of unit products increases with the increase of carbon tax; when the carbon tax is constant, the retail pricing and channel profit of unit products decrease as the value of k increases; when the carbon tax rate is constant, the unit product's carbon emissions and channel profit under the decentralized decision model are lower than those under the centralized decision, and the retail price declines faster than the rate of change under the centralized decision; when the carbon tax rate increased gradually, the decline rate in channel profits and carbon emissions per unit of product gradually decreases. The research findings promote the related research on pricing strategies of marine products under the carbon labelling system, and has certain theoretical and practical reference value.

Keywords: marine products; pricing; products carbon; carbon labelling; labelling system; carbon

Journal Title: Journal of Coastal Research
Year Published: 2020

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