Does carbon reduction label work? From a perspective of agricultural product supply chain with consumer's low-carbon preference and label recognition

Abstract

Agricultural product supply chain faces the twin challenges of carbon reduction and market competitiveness amidst the global climate crisis. In this article, Stackelberg is a model game used to study the optimal decisions of various supply chain members on emission reduction strategies under various carbon labeling (CES) standards. Findings reveal that Stringent CES is beneficial when consumer low-carbon preference (CLP) is low or consumer recognition of carbon label (CLR) is pronounced. Enhancing CLR substantially boosts carbon emissions reduction, corporate performance, and environmental benefits in individual scenarios. However, improving CLP changes corporate performance, consumer surplus, and social environmental benefits are also related to CES. These insights furnishing a theoretical foundation for developing effective reduction strategies in agricultural supply chains.