Abstract
This paper incorporates green innovation into a two-tier new energy vehicle supply (NEV) chain under a dual credit policy, in which the NEV manufacturer controls the level of green innovation and wholesale prices, and the NEV retailer controls sales prices. We analyze the pricing and green innovation strategies of the NEV manufacturer and retailer in decentralized and integrated scenarios by constructing differential game models. We then test the performance of the supply chain by comparing the profit, energy efficiency levels and green innovation levels of the NEV supply chain with those in the decentralized scenario. It is found that the profits, energy efficiency levels and green innovation levels of the NEV supply chain in the integrated scenario are higher than those in the decentralized scenario. Therefore, a revenue and investment sharing contract is designed to coordinate the supply chain and several conditions are derived for the contract to be accepted by both members of the supply chain. Numerical calculations are performed and the theoretical results and impacts of the unit credit trading price and the percentage of units of NEV converted into credits on the supply chain coordination are analyzed to further validate the effectiveness of the dual credit policy.