The thesis discusses two types of product pricing scenarios, in which the manufacturer bears the cost of carbon reduction by improving its own carbon reduction technology, and transfers the cost of carbon reduction to retailers and consumers through price increases. The study also compares the benefits to the manufacturer, the retailer and the supply chain as a whole, and concludes that the overall benefits to the supply chain are higher in the form of the manufacturer's own carbon reduction technology, which bears the costs of carbon reduction, than in the form of price increases.