Pricing and replenishment strategy for a perishable product under various payment schemes and cap-and-trade regulation

•We considered a three-echelon supply chain structure (supplier-retailer-customer).•The retailer receives an upstream ACC & offers a partial downstream credit payment.•The model is based on the carbon cap-and-trade policy & credit period policy.•The deterioration rate of an item increases over time with an expiration date.•Different payment schemes are compared to gain meaningful management enlightenment.