Abstract：This paper comprehensively considers the impacts of abatement investment’s lag effect and consumer’s low carbon reference effect on the market demand and brand goodwill, constructs a dual-channel low carbon supply chain system consisting of a manufacturer and a retailer, and adopts optimal control theory to compare and analyze the members’ operation strategies, product low-carbon level, brand goodwill, and overall profit under the decentralized, centralized, and cost sharing decision-making modes. The study finds that reference effect always mobilizes the manufacturer′s enthusiasm for low-carbon production, improves the steady-state value of low-carbon level of product and brand goodwill, and discourages companies from advertising investment; It is meaningful for members of the low carbon supply chain to adopt the centralized decision-making mode only when the delay time is below a certain threshold; The delay time raises consumer’s psychological expectation of the low-carbon level of product, reference effect intensifies the impact of delay time on the overall profit of supply chain under different decision mechanisms.
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