A study on pricing, emission reduction, and innovative digital investment strategies for competitive or cooperative EV supply chains

Increasing efforts in emission reduction and innovative practices in the digital economy allow manufacturers to meet Sustainable Development Goals (SDGs) while remaining competitive in the market. However, high investments in energy-efficient technology and the digital economy may impede success. This study considers how Energy Vehicle (EV) firms may cooperate and compete to maximize their profits simultaneously. The manufacturer endows emission curtailment technology to meet the SDGs, while the distributor invests in digital economy efforts to grow the market. Four different EV supply chain structures (i.e., Decentralized and integrated models under competition or cooperation) are considered in this study. The model is solved analytically following a game theoretical approach. Next, the analytical model has been verified and illustrated using multiple simulation runs. This study is aimed at helping EV companies better grasp optimal pricing, greening efforts, and digital investment plans under various market scenarios.