Carbon Taxes and Carbon Right Costs Analysis for the Tire Industry

Abstract

As enterprises are the major perpetrators of global climate change, concerns about global warming, climate change, and global greenhouse gas emissions continue to attract attention, and have become international concerns. The tire industry, which is a high-pollution, high-carbon emission industry, is facing pressure to reduce its carbon emissions. Thus, carbon prices and carbon trading have become issues of global importance. In order to solve this environmental problem, the purpose of this paper is to combine mathematical programming, Theory of Constraints (TOC), and Activity-Based Costing (ABC) to formulate the green production decision model with carbon taxes and carbon right costs, in order to achieve the optimal product mix decision under various constraints. This study proposes three different scenario models with carbon taxes and carbon right used to evaluate the effect on profit of changes in carbon tax rates.Energies 2018, 11, 2121 2 of 22 of uncertainty and political feasibility. Additional considerations include carbon taxes, tradable emission allowances, emission reduction subsidies, and research and development subsidies [6]. In the actual situation of the EU, the implementation of the carbon price policy can achieve the goal of emission reduction, and the carbon trading results also show that carbon emissions can be controlled through carbon trading [7]. But when the regulatory company gets compensation, efficiency needs to be paid among the companies to balance the damage caused by the marginal probability. Applying this basic economic logic to the analysis of the compensation rules proposed under the EU Emissions Trading Scheme, emissions permits can be allocated free of charge to carbon-intensive and trade-exposed industries [8]. However, various environmental policy instruments, including carbon emission taxes, tradable emission allowances, emission reduction subsidies, performance standards, technical tasks, and research and development subsidies, can meet major evaluation criteria, including cost-effectiveness, fair distribution, and risk minimization of uncertainty, and political feasibility [9]. Investigating carbon prices in China, the results show that it has important policy implications for regional markets to be included in national carbon trading [10]. The impact of the Emissions Trading Scheme (ETS) is one of the most effective mitigation measures [11]. The tire industry's production process greatly increases atmospheric greenhouse gas concentrations. At present, many countries have adopted a "carbon tax" levy to solve corporate carbon emission problems with the related costs borne by enterprises. Sathre and Gustavsson believed that taxation on environmental issues can reduce pollution [12]. Therefore, the impact of carbon pricing policies on the economy is very significant [13].In Australia, the carbon premium has become higher and higher after the implementation of the carbon tax, and indicates that a stable long-term policy is needed in the future to enable the carbon pricing mecha...

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