Freight consolidation and containerization strategy under business as usual scenario & carbon tax regulation

Future carbon dioxide (CO2) emissions under a carbon tax depend on the time-path of the economy under baseline (business-as-usual) conditions as well as the extent to which the policy reduces emissions relative to the baseline. Considerable uncertainties surround the baseline forecasts for fuel prices, energy efficiency (energy-GDP ratios), and GDP, as evidenced by the significant ranges in the forecasts by government agencies and research institutions in the U.S. This paper assesses the significance of these uncertainties to the path of CO2 emissions under a carbon tax. We do this by examining the emissions levels and quantities of abatement that result from the E3 general equilibrium model under a range of alternative baseline forecasts for fuel prices, energy efficiency, and GDP, where the different baselines are produced through suitable changes to key model parameters. In addition, we consider how the time-profile of the carbon tax needed to achieve specified CO2 abatement targets is affected by such forecast-linked changes in parameters. We find that the sensitivity of baseline emissions to alternative forecasts depends on the particular forecasted variable under consideration. Baseline CO2 emissions are highly sensitive to alternative scenarios related to the rate of energy efficiency improvements in the nonenergy sector and the rate of general economic growth. In contrast, such emissions are much less sensitive to alternative scenarios related to the productivity of fossil fuel production. The extent of abatement from the baseline is generally fairly insensitive to changes in the scenarios for time-paths of fuel prices, energy-efficiency and GDP. We also find that short-term emissions targets can be achieved with relatively moderate carbon taxes under all of the baseline scenarios considered.

Download Full-text

Low Carbon Economic Production Quantity Model for Imperfect Quality Deteriorating Items

International Journal of Industrial Engineering and Engineering Management ◽

10.24002/ijieem.v1i1.2291 ◽

2019 ◽

Vol 1 (1) ◽

pp. 1 ◽

Cited By ~ 1

Author(s):

Y Daryanto ◽

H.M. Wee

Keyword(s):

Carbon Emission ◽

Carbon Tax ◽

Secondary Market ◽

Deteriorating Items ◽

Low Carbon ◽

Economic Production Quantity ◽

Work In Process ◽

Economic Production ◽

Production Quantity ◽

Tax Regulation

This paper presents an economic production quantity (EPQ) model for deteriorating items with a certain percentage of defective products due to an imperfect process. The defective products are sold to a secondary market at a discount price. Due to environmental concern and carbon tax regulation, the manufacturer incorporates the control of carbon emission cost into its decision model. Carbon emission cost is a function of electricity consumption during production and inventory storage; it is also dependent on the carbon tax rate. Since the production process results in work-in-process inventory and carbon emission, the study tries to optimize the throughput time. We also examine the effect of carbon tax regulation on the potential emission reduction from the developed deteriorating item model. A numerical example and sensitivity analysis have been provided, and the result confirms the influence of carbon tax regulation in reducing carbon emission.

Download Full-text

A Multistage Sustainable Production–Inventory Model with Carbon Emission Reduction and Price-Dependent Demand under Stackelberg Game

Applied Sciences ◽

10.3390/app10144878 ◽

2020 ◽

Vol 10 (14) ◽

pp. 4878

Author(s):

Chi-Jie Lu ◽

Tian-Shyug Lee ◽

Ming Gu ◽

Chih-Te Yang

Keyword(s):

Supply Chain ◽

Carbon Emissions ◽

Stackelberg Game ◽

Carbon Tax ◽

Inventory Model ◽

Sustainable Production ◽

Equilibrium Solutions ◽

Production Inventory ◽

Dependent Demand ◽

Tax Regulation

This paper investigated a multistage sustainable production–inventory model for deteriorating items (i.e., raw materials and finished goods) with price-dependent demand and collaborative carbon reduction technology investment under carbon tax regulation. The model was developed by first defining the total profit of the supply chain members under carbon tax regulation and, second, considering a manufacturer (leader)–retailer (follower) Stackelberg game. The optimal equilibrium solutions that maximize the manufacturer’s and retailer’s total profits were determined through the method analysis. An algorithm complemented the model to determine the optimal equilibrium solutions, which were then treated with sensitivity analyses for the major parameters. Based on the numerical analysis, (a) carbon tax policies help reduce carbon emissions for both the manufacturer and retailer; (b) most carbon emissions from supply chain operations negatively impact the total profits of both members; (c) the retailer may increase the optimal equilibrium selling price to respond to an increase in carbon emissions from supply chain operations or carbon tax; and (d) autonomous consumption positively affects both members’ optimal equilibrium policies and total profits, whereas induced consumption does the opposite. These findings are very managerial and instructive for companies seeking profits and fulfilling environmental responsibility and governments.

Download Full-text

A joint analysis of environmental and economic performances of closed-loop supply chains under carbon tax regulation

Computers & Industrial Engineering ◽

10.1016/j.cie.2020.106624 ◽

2020 ◽

Vol 146 ◽

pp. 106624 ◽

Cited By ~ 3

Author(s):

Guowei Dou ◽

Kaiying Cao

Keyword(s):

Supply Chains ◽

Closed Loop ◽

Carbon Tax ◽

Joint Analysis ◽

Closed Loop Supply Chains ◽

Tax Regulation

Download Full-text

Effects of Government Subsidies on Production and Emissions Reduction Decisions under Carbon Tax Regulation and Consumer Low-Carbon Awareness

International Journal of Environmental Research and Public Health ◽

10.3390/ijerph182010959 ◽

2021 ◽

Vol 18 (20) ◽

pp. 10959

Author(s):

Weiling Wang ◽

Yongjian Wang ◽

Xiaoqing Zhang ◽

Dalin Zhang

Keyword(s):

Social Welfare ◽

Carbon Tax ◽

Consumer Surplus ◽

Emissions Reduction ◽

Environmental Damage ◽

Low Carbon ◽

Government Subsidies ◽

Investment Cost ◽

The Government ◽

Tax Regulation

To promote low-carbon production, the government simultaneously provides some subsidies under carbon tax regulations. Two government subsidies are widely adopted: one is based on emissions reduction quantity and the other is based on emissions reduction investment cost. Additionally, consumer low-carbon awareness has also been enhanced. Considering the aforementioned circumstances, this paper investigates the effects of different government subsidies on production and emissions reduction decisions under a carbon tax regulation by formulating three decision-making optimization models. The results show that (1) although the carbon tax regulation cannot guarantee further improvement of emissions reduction levels, government subsidies could make the corresponding conditions of improving emissions reduction investments wider; (2) a heavy carbon tax or stronger consumer low-carbon awareness would make the positive effect of government subsidies more apparent; and (3) subsidy policies may also be selected by the government from different perspectives, such as manufacturer development, consumer surplus, environmental damage and social welfare. Especially, from the perspective of maximizing social welfare, investment cost (IC) subsidy is not always advantageous, while emissions reduction (ER) subsidy can always bring higher social welfare compared with the case under no government subsidy.

Download Full-text