Will the embedded service in supply chains play a role in lowering manufacturer’s carbon emission and maintaining economic growth?

Introduction: The carbon cap and trade mechanism (CCTM) is forcing companies to reduce emissions. Due financial technical constraints, manufacturers responsible for recycling remanufacturing begin seek embedded services from energy service (ESCOs), marking the emergence of low-carbon supply chains. purpose this paper explore role in chains lowering manufacturer’s emissions maintaining economic growth. Methods: In paper, a decision model risk-averse closed-loop chain uncertain markets built by using Stackelberg theory mean-variance (MV) approach. Equilibrium decisions, expected utility growth, total emission reduction are obtained. Sensitivity analysis performed main parameters. Results: results indicate that only when risk aversion level consumers’ preference within range 0.35–0.9, can manufacturer bring cooperating with an ESCO through revenue-sharing contracts. When there higher price, further increase utility, maintain growth Discussion: Embedded play manufacturers’ level, high. Theoretically, study combines (CLSCs) services, enriching theories. addition, findings provide managerial insights manufacturers, ESCOs, governments.