Cooperative strategies of emission reduction in the 3PL-led supply chain.

This article examines cost-sharing strategies for low-carbon investments by third-party logistics providers (3PL) within a supply chain comprising a manufacturer, a retailer, and a 3PL. It compares three models: no cost-sharing (NS), manufacturer sharing (MS), and retailer sharing (RS), analyzing how these affect emission reduction efforts, profits, environmental benefits, consumer surplus, and social welfare. Using a game-theoretic approach with Nash bargaining, the study finds that cost-sharing promotes higher low-carbon investments and can achieve Pareto improvements for all parties, though manufacturers and retailers tend to exhibit free-rider behavior by preferring the other to share costs. The 3PL's preference for sharing partners depends on the relative investment costs of logistics and production, with joint cost-sharing by manufacturer and retailer mitigating free-riding and enhancing overall supply chain performance and social welfare.