Optimal production and carbon emission reduction level under cap-and-trade and low carbon subsidy policies

Cao, Kaiying; Xu, Xiaoping; Wu, Qiang; Zhang, Quanpeng

doi:10.1016/j.jclepro.2017.07.251

Cited by 274 publications

(116 citation statements)

References 33 publications

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“…Moreover, we assume that the total carbon emission is equal to (e I − e)q, which can be supported by Cao et al [29]. Thus, the firms should pay t(e I − e)q to the government for its total carbon emission.…”

Section: Problem Descriptionmentioning

confidence: 93%

The Optimal Carbon Reduction and Return Strategies under Carbon Tax Policy

Wang

Huang

2018

Sustainability

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Recently, consumers have been increasingly shopping due to the development of e-commerce; thus, many traditional firms producing green products are entering e-commerce platforms to sell products for their survival. In the contexts of online sales and carbon tax policy, firms need to determine an optimal carbon reduction level and online return strategies. To address firms' decision-making challenges, we consider a firm producing and selling its green products via an e-commerce platform. For optimal online return strategies, we find that if the residual value of the returned product is relatively small, the firm should not offer an online return service; otherwise, the firm should offer this service. Moreover, the results show that carbon tax policy is detrimental to the firm and consumers, while increasing the average customer satisfaction rate of the product benefits the firm and consumers. Interestingly, we find that the platform should reduce its referral fee as the unit carbon tax increases.

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Section: Problem Descriptionmentioning

confidence: 93%

The Optimal Carbon Reduction and Return Strategies under Carbon Tax Policy

Wang

Huang

2018

Sustainability

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“…Cao found the increasing of carbon trading price will lead to the increasing of carbon emission reduction. Moreover, the carbon trading prices do not always have a negative impact on manufacturers' profits [17]. Xu et al combined the equilibrium tactic with a cap-and-trade system, and proposed a bi-level multi-objective carbon emission model which could depict interrelationships of multiple stakeholders and resolve their conflicts [18].…”

Section: Supply Chain Operation Decisions Under Cap-and-trade Policymentioning

confidence: 99%

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

Jiang

2019

Sustainability

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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.

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“…In production management, Benjaafar et al [26] present three models to analyze how to curb carbon footprints under carbon cap-and-trade. Cao et al [27] demonstrate the optimal production with carbon emission regulation and compare the e ectiveness of di erent kinds of low-carbon subsidy policies. Under cap-and-trade regulation, Gong and Zhou [28] explore how a rm plans production in a multi-period horizon.…”

Section: Literature Reviewmentioning

confidence: 99%

Pricing Strategy and Carbon Emission Abatement under Cap-and-Trade Regulation Considering Social Learning

Chen

2019

Discrete Dynamics in Nature and Society

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In an uncertainty market, social learning plays a signi cant role in obtaining information to make better decisions. Under cap-and-trade regulation, this paper aims to investigate rms' pricing and carbon emission abatement issues considering the impact of social learning. is paper establishes a two-period model in a market consisting of a manufacturer and heterogeneous consumers. e manufacturer produces two alternatives (ordinary product and low-carbon product) and makes decisions on sales prices and carbon emission abatement levels. Consumers make decisions on whether and which product to buy. Consumers are not sure about their valuations of products and have the opportunity to discover their true valuation by social learning. e results show that the emission abatement level on ordinary product is a ected by the pricing strategy for both types of products. However, the emission abatement level on low-carbon product is only a ected by its own pricing strategy. It also shows that social learning lowers the emission abatement level on ordinary product, whereas it improves the emission abatement level on low-carbon product when charging a high price for low-carbon product. Moreover, the price of ordinary product in period 1 is no less than that in period 2. In contrast, the price of low-carbon product in period 2 is higher than that in period 1.Hindawi

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Optimal production and carbon emission reduction level under cap-and-trade and low carbon subsidy policies

Cited by 274 publications

References 33 publications

The Optimal Carbon Reduction and Return Strategies under Carbon Tax Policy

The Optimal Carbon Reduction and Return Strategies under Carbon Tax Policy

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

Pricing Strategy and Carbon Emission Abatement under Cap-and-Trade Regulation Considering Social Learning

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