Emission-Dependent Production for Environment-Aware Demand in Cap-and-Trade System

2017 ◽  
Vol 16 (01) ◽  
pp. 67-80 ◽  
Author(s):  
Lili Zhu ◽  
Juanjuan Zhou ◽  
Yuanyuan Yu ◽  
Jiaang Zhu
Keyword(s):  
Emission Reduction ◽  
Carbon Emission ◽  
Environmental Awareness ◽  
Decision Making Process ◽  
Cap And Trade ◽  
Key Factors ◽  
Product Demand ◽  
Target Production ◽  
Environmental Administration ◽  
The Impact

This paper focuses on the impact of ‘cap-and-trade’ mechanism and customer’s environmental awareness on emission-dependent manufacturer. Carbon emission cap from the perspective of government will be confirmed. In the ‘cap-and-trade’ system, emission permit becomes one of the key factors of production for emission-dependent firms. If the cap is insufficient to satisfy the target production, extra permit should be purchased via trading, otherwise, the remaining permit will be sold to other firms. Since the product demand has been influenced due to the consideration of customer environmental awareness, the production will be decided by analyzing the produced decision-making process of the emission-dependent firm in this case. Base on the consideration of improving environment benefits, carbon emission cap of this kind of manufacturer will be determined. Additionally, numerical analysis is considered. We found that it is profitable for the manufacturer investing; meanwhile, the emission intensity of this manufacturer is ameliorative. And emission reduction investment should be encouraged by the environmental administration in some way of preferential policy.

scholarly journals Strategies for Capital Constrained Timber and Carbon Sink Supply Chain under the Cap-and-Trade Scheme

2020 ◽  
Vol 12 (11) ◽  
pp. 4380
Author(s):  
Xinyue Yang ◽  
Ye Song ◽  
Mingjun Sun ◽  
Hongjun Peng
Keyword(s):  
Supply Chain ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Carbon Sink ◽  
Cap And Trade ◽  
Stackelberg Model ◽  
Emission Rights ◽  
The Government ◽  
The Impact ◽  
Reduction Costs

We consider a capital constrained timber and carbon sink supply chain under the cap-and-trade scheme, where the forest company produces timber and carbon sink. We consider two subsidy modes: financing subsidy to the carbon sink forests and financing subsidy to the manufacturer’s emission reductions. We apply a Stackelberg model and mainly consider the impact of subsidies on the profits and the strategies of the supply chain members. The results show that when the government gives a financing subsidy to the carbon sink forests, it is conducive to promoting the expansion of carbon sink forests, as well as the enhancement of the forest company’s profit. However, a larger supply of carbon sinks generates a lower price, which leads to the manufacturer reducing the technical emission reduction level and purchasing more carbon emission rights instead. On the other hand, when the manufacturer receives a financing subsidy for the technical emission reduction costs, its production becomes cleaner than before, and the profits of the forest company and the manufacturer increase.

scholarly journals Ananlysis of Carbon Emission Reduction and Power Dominance between Single Manufacturer and Single Retailer in Regulatory Cap and Trade System

2014 ◽  
Vol 2014 ◽  
pp. 1-12 ◽  
Author(s):  
Liang-jie Xia ◽  
Hua-wei Zhi
Keyword(s):  
Supply Chain ◽  
Numerical Analysis ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Stackelberg Game ◽  
Supply Chain Coordination ◽  
Individual Rationality ◽  
Side Payment ◽  
Cap And Trade ◽  
Product Demand

In the cap and trade system, the paper analyses the Stackelberg game between the power asymmetrical retailer and manufacturer and designs a side-payment self-enforcing contract to resolve some arguments that the existing research overemphasizes spontaneity of participation in side-payment contracts design based on supply chain coordination and does not consider rationality and fairness of allocation of profit increment. Also, the numerical analysis was given. The research shows some important conclusions: in the supply chain, the dominant manufacturer is not able to encourage the retailer to improve its promotion level by increasing its carbon cutting level, but the optimal emission reduction level increases with the dominant retailer’s promotion level; the optimal promotion level, emission reduction, and product demand in a retailer leading supply chain are higher than those in a supply chain dominated by manufacturer; with the new side-payment self-enforcing contract, decentralized decision according to individual rationality incurs a collective reason effect in the centralized setting.

scholarly journals The Impact of Different Carbon Emission Policies on Liner Shipping

2020 ◽  
Vol 2020 ◽  
pp. 1-12
Author(s):  
Xiangang Lan ◽  
Xiaode Zuo ◽  
Xia Tang
Keyword(s):  
Carbon Emissions ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Direct Method ◽  
Liner Shipping ◽  
Cap And Trade ◽  
Emissions Tax ◽  
Long Run ◽  
Forms Of Carbon ◽  
The Impact

This paper considers the influence of different carbon emission policies for liner shipping. The transportation optimization models under four different forms of carbon emission policies (no carbon emissions constraints, carbon emissions tax, carbon caps, and carbon cap-and-trade) are developed. A real case is given to demonstrate the effectiveness of the proposed models and comparative analysis of the impact of different carbon emission policies on shipowner’s profit and ship carbon emission. It is shown that the carbon caps form is the most direct method for reducing emission; the form of carbon emissions tax is a mandatory measure, which has the greatest impact on the profit of shipping companies; carbon cap-and-trade forms have weaker emission reduction effects, it is easier for enterprises to actively implement emission reductions and be highly motivated in the long run.

scholarly journals Incentive Contract Design considering Fairness Preferences and Carbon Emission Reduction Multiobjective Tasks

2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Zhipeng Li ◽  
Shuzhen Zhu ◽  
Xinyu Cao
Keyword(s):  
Discount Rate ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Correlation Coefficients ◽  
Carbon Emission Reduction ◽  
Incentive Model ◽  
Incentive Strategies ◽  
The Government ◽  
The Impact

Considering the multitargets of corporate carbon emission reduction and the fairness preference psychology of the company, a government incentive model for corporate carbon emission reduction was constructed. The impact of corporate fairness preferences on government carbon emission reduction incentive strategies is studied. In addition, numerical simulation is used to analyze the impact of changes in correlation coefficients, fairness preference coefficients, and discount rates on the optimal enterprise effort coefficient and the government optimal incentive coefficient. Research shows that the degree of fairness preference of a company has a direct impact on the degree of corporate effort, while the discount rate will only have an impact on the company’s long-term effort. In order to improve corporate carbon emission reduction efforts, the government must not only consider the impact of fairness preference on corporate efforts but also flexibly adjust the incentive coefficient of long-term and short-term tasks based on the discount rate.

scholarly journals Optimal Decisions for Two Risk-Averse Competitive Manufacturers under the Cap-and-Trade Policy and Uncertain Demand

2020 ◽  
Vol 17 (3) ◽  
pp. 1010 ◽  
Author(s):  
Hongxia Sun ◽  
Jie Yang ◽  
Yang Zhong
Keyword(s):  
Decision Making ◽  
Carbon Emissions ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Reduction Rate ◽  
Risk Averse ◽  
Cap And Trade ◽  
Carbon Emission Reduction ◽  
Optimal Decisions ◽  
The Government

With the increasingly serious problem of environmental pollution, reducing carbon emissions has become an urgent task for all countries. The cap-and-trade (C&T) policy has gained international recognition and has been adopted by several countries. In this paper, considering the uncertainty of market demand, we discuss the carbon emission reduction and price policies of two risk-averse competitive manufacturers under the C&T policy. The two manufacturers have two competitive behaviors: simultaneous decision making and sequential decision making. Two models were constructed for these behaviors. The optimal decisions, carbon emission reduction rate, and price were obtained from these two models. Furthermore, in this paper the effects of some key parameters on the optimal decision are discussed, and some managerial insights are obtained. The results show that the lower the manufacturers’ risk aversion level is, the higher their carbon emission reduction rate and utilities. As the carbon quota increases, the manufacturers’ optimal carbon reduction rate and utilities increase. Considering consumers’ environmental awareness, it is more beneficial for the government to reduce the carbon quota and motivate manufacturers’ internal enthusiasm for emission reduction. The government can, through macro control of the market, make carbon trading prices increase appropriately and encourage manufacturers to reduce carbon emissions.

The impact of price and revenue floors on carbon emission reduction investment by coal-fired power plants

2020 ◽  
Vol 154 ◽  
pp. 119961 ◽  
Author(s):  
Xinhua Zhang ◽  
Dongmei Gan ◽  
Yali Wang ◽  
Yu Liu ◽  
Jiali Ge ◽  
...  
Keyword(s):  
Emission Reduction ◽  
Power Plants ◽  
Carbon Emission ◽  
Carbon Emission Reduction ◽  
The Impact

scholarly journals Profit Distribution Model for Construction Supply Chain with Cap-and-Trade Policy

2019 ◽  
Vol 11 (4) ◽  
pp. 1215 ◽  
Author(s):  
Wen Jiang ◽  
Wenfei Lu ◽  
Qianwen Xu
Keyword(s):  
Supply Chain ◽  
Trade Policy ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Cap And Trade ◽  
Carbon Emission Reduction ◽  
Profit Distribution ◽  
General Contractor ◽  
Cost Coefficient ◽  
Pure Competition

Cap-and-trade has become one of the most widely used carbon emission limitation methods in the world. Its constraints have a great impact on the carbon emission reduction decisions and production operations of supply chain enterprises, as well as profit distribution. In the construction supply chain, there are few studies on the profit distribution and emission reduction decisions considering cap-and-trade policy. This paper investigates the profit distribution model of a two-echelon construction supply chain consisting of a general contractor and a subcontractor with cap-and-trade policy. Using game theory and Shapley value method, the optimal emission reduction decisions and profit distribution under three cooperation modes of pure competition, co-opetition, and pure cooperation are obtained, respectively. The research shows that the profits of the construction supply chain are increasing in pure competition, co-opetition, and pure cooperation scenarios, and the emission reduction amount of the construction supply chain in the case of pure cooperation is greater than that of pure competition and co-opetition. The carbon emission reduction amount under the co-opetition scenario is not always greater than that under the pure competition scenario, which depends on the emission reduction cost coefficient relationship of general contractor and subcontractor. When the cost coefficient of emission reduction of the general contractor is less than that of the subcontractor, the emission reduction amount under pure competition is larger than that under co-opetition. A numerical study is carried out to verify the conclusions and illustrated the profits of the supply chain decreased with the increase of carbon emission reduction cost coefficient, and had nothing to do with the emission reduction efficiency of enterprises.

scholarly journals Optimizing Urban Distribution Routes for Perishable Foods Considering Carbon Emission Reduction

2019 ◽  
Vol 11 (16) ◽  
pp. 4387 ◽  
Author(s):  
Lin ◽  
Zhang ◽  
Wang ◽  
Yang ◽  
Shi ◽  
...  
Keyword(s):  
Carbon Emissions ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Carbon Tax ◽  
Search Algorithm ◽  
Urban Traffic ◽  
Low Carbon ◽  
Carbon Emission Reduction ◽  
Urban Distribution ◽  
The Impact

The increasing demand for urban distribution increases the number of transportation vehicles which intensifies the congestion of urban traffic and leads to a lot of carbon emissions. This paper focuses on carbon emission reduction in urban distribution, taking perishable foods as the object. It carries out optimization analysis of urban distribution routes to explore the impact of low carbon policy on urban distribution routes planning. On the basis of analysis of the cost components and corresponding constraints of urban distribution, two optimization models of urban distribution routes with and without carbon emissions cost are constructed. Fuel quantity related to cost and carbon emissions in the model is calculated based on traffic speed, vehicle fuel quantity and passable time period of distribution. Then an improved algorithm which combines genetic algorithm and tabu search algorithm is designed to solve models. Moreover, an analysis of the influence of carbon tax price is also carried out. It is concluded that in the process of urban distribution based on the actual network information, path optimization considering the low carbon factor can effectively reduce the distribution process of CO2, and reduce the total cost of the enterprise and society, thus achieving greater social benefits at a lower cost. In addition, the government can encourage low-carbon distribution by rationally adjusting the price of carbon tax to achieve a higher social benefit.

scholarly journals Joint Optimal Production Planning for Complex Supply Chains Constrained by Carbon Emission Abatement Policies

2014 ◽  
Vol 2014 ◽  
pp. 1-14 ◽  
Author(s):  
Longfei He ◽  
Zhaoguang Xu ◽  
Zhanwen Niu
Keyword(s):  
Supply Chains ◽  
Production Planning ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Joint Production ◽  
Optimal Production ◽  
Carbon Emission Reduction ◽  
Regulatory Policies ◽  
Emission Regulation ◽  
The Impact

We focus on the joint production planning of complex supply chains facing stochastic demands and being constrained by carbon emission reduction policies. We pick two typical carbon emission reduction policies to research how emission regulation influences the profit and carbon footprint of a typical supply chain. We use the input-output model to capture the interrelated demand link between an arbitrary pair of two nodes in scenarios without or with carbon emission constraints. We design optimization algorithm to obtain joint optimal production quantities combination for maximizing overall profit under regulatory policies, respectively. Furthermore, numerical studies by featuring exponentially distributed demand compare systemwide performances in various scenarios. We build the “carbon emission elasticity of profit (CEEP)” index as a metric to evaluate the impact of regulatory policies on both chainwide emissions and profit. Our results manifest that by facilitating the mandatory emission cap in proper installation within the network one can balance well effective emission reduction and associated acceptable profit loss. The outcome that CEEP index when implementing Carbon emission tax is elastic implies that the scale of profit loss is greater than that of emission reduction, which shows that this policy is less effective than mandatory cap from industry standpoint at least.

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