Game Analysis Between Government and Enterprises Considering Consumers' Low Carbon Awareness Under the Carbon Tax Regulation

Author(s):  
Mengjiao Wu ◽  
Guowei Hua ◽  
Liangjie Xia
Author(s):  
Y Daryanto ◽  
H.M. Wee

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.


Author(s):  
Weiling Wang ◽  
Yongjian Wang ◽  
Xiaoqing Zhang ◽  
Dalin Zhang

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.


2016 ◽  
Vol 9 (2) ◽  
pp. 113-130 ◽  
Author(s):  
Shihui Yang ◽  
Jun Yu

Purpose The purpose of this study is to help governments make carbon-tax policy and help enterprises make decisions under that policy. Design/methodology/approach Based on the carbon-tax policy, with the consideration of consumers’ low-carbon preferences, this paper compares the pricing, emission reduction and advertising decisions in three different games (one centralized game and two decentralized Stackelberg games). Findings This paper concludes that, through centralized game, namely, cooperation game, manufacturers, retailers and consumers can reach their optimal situation. In the numerical simulation, this paper analyzes the impact of carbon-tax rate to the decisions of manufacturer and retailer, as well as their profit. Originality/value Using the Nash Bargaining Model, the introduction of the bargaining power and the degree of risk aversion of the parties, this study provides some solution for the distribution of the additional profit when they cooperate, in which way they can reach their Pareto optimality.


2021 ◽  
pp. 074391562110088
Author(s):  
Luca Panzone ◽  
Alistair Ulph ◽  
Denis Hilton ◽  
Ilse Gortemaker ◽  
Ibrahim Tajudeen

The increase in global temperatures requires substantial reductions in the greenhouse emissions from consumer choices. We use an experimental incentive-compatible online supermarket to analyse the effect of a carbon-based choice architecture, which presents commodities to customers in high, medium and low carbon footprint groups, in reducing the carbon footprints of grocery baskets. We relate this choice architecture to two other policy interventions: a bonus-malus carbon tax on all grocery products; and moral goal priming, using an online banner noting the moral importance of reducing one’s carbon footprint. Participants shopped from their home in an online store containing 612 existing food products and 39 existing non-food products for which we had data on carbon footprint, over three successive weeks, with the interventions occurring in the second and third weeks. Choice architecture reduced carbon footprint significantly in the third week by reducing the proportion of choices made in the high-carbon aisle. The carbon tax reduced carbon footprint in both weeks, primarily by reducing overall spend. The goal priming banner led to a small reduction in carbon footprint in the second week only. Thus, the design of the marketplace plays an important role in achieving the policy objective of reducing greenhouse gas emissions.


2020 ◽  
Vol 143 (1) ◽  
Author(s):  
Philip J. Ball

Abstract A review of conventional, unconventional, and advanced geothermal technologies highlights just how diverse and multi-faceted the geothermal industry has become, harnessing temperatures from 7 °C to greater than 350 °C. The cost of reducing greenhouse emissions is examined in scenarios where conventional coal or combined-cycle gas turbine (CCGT) power plants are abated. In the absence of a US policy on a carbon tax, the marginal abatement cost potential of these technologies is examined within the context of the social cost of carbon (SCC). The analysis highlights that existing geothermal heat and power technologies and emerging advanced closed-loop applications could deliver substantial cost-efficient baseload energy, leading to the long-term decarbonization. When considering an SCC of $25, in a 2025 development scenario, geothermal technologies ideally need to operate with full life cycle assessment (FLCA) emissions, lower than 50 kg(CO2)/MWh, and aim to be within the cost range of $30−60/MWh. At these costs and emissions, geothermal can provide a cost-competitive low-carbon, flexible, baseload energy that could replace existing coal and CCGT providing a significant long-term reduction in greenhouse gas (GHG) emissions. This study confirms that geothermally derived heat and power would be well positioned within a diverse low-carbon energy portfolio. The analysis presented here suggests that policy and regulatory bodies should, if serious about lowering carbon emissions from the current energy infrastructure, consider increasing incentives for geothermal energy development.


2021 ◽  
Author(s):  
Filda C. Yusgiantoro ◽  
◽  
I Dewa Made Raditya Margenta ◽  
Haryanto Haryanto ◽  
Felicia Grace Utomo

1. This report shows that six G20 countries (Japan, South Africa, Argentina, France, Ireland, and Mexico) and one ASEAN Member States (Singapore) have implemented a carbon tax. 2. The energy sector is the primary GHG emissions contributor in most member states, except Indonesia. However, the energy sector in Indonesia will highly contribute to the national GHG emissions considering the rise of energy demand due to economic and population growth. 3. The effectiveness of carbon tax is specific to which sectors are taxed and which sectors are exempt to a country member. Specifically, a higher emissions price may not cover a large share of emissions in the country. The high carbon tax in France only covers 35% of total emissions in its jurisdiction. Meanwhile, Japan and Singapore’s low carbon tax covers 75% and 80% of total emissions in their jurisdiction, respectively. 4. The numbers of sectoral coverage by emissions price will impact the level of revenues generated from the carbon tax. France obtained the most significant carbon tax revenue for more than USD 9.6 billion. Meanwhile, Argentina generated less than USD 1 million, likely due to tax exemptions in natural gas commodities. 5. The contribution level of carbon tax revenue to the government’s total revenue varies for each country. France and Ireland’s carbon tax revenue contributes 0.71% and 0.53% of their total government revenue, respectively. Meanwhile, the rest of the countries’ carbon tax revenue contributed less than 0.3% each to their government revenue.


Author(s):  
Basanta K. Pradhan ◽  
Joydeep Ghosh

This paper compares the effects of a global carbon tax and a global emissions trading regime on India using a dynamic CGE framework. The sensitivity of the results to the value of a crucial elasticity parameter is also analysed. The results suggest that the choice of the mitigation policy is relatively unimportant from an efficiency perspective. However, the choice of the mitigation policy and the value of the substitution elasticity between value added and energy were found to be important determinants of welfare effects. Global climate change mitigation policies have the potential for promoting low carbon and inclusive growth in India.


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