scholarly journals Leasing or Selling? Durable Goods Manufacturer Marketing Model Selection under a Mixed Carbon Trading-and-Tax Policy Scenario

Author(s):  
Yuxiang Zhang ◽  
Deqing Tan ◽  
Zhi Liu

Many carbon reduction policies have been implemented to reduce carbon dioxide in the manufacturing process of products. However, many products emit more carbon dioxide in the consumption process. From the consumer’s utility perspective, this paper firstly analyses the manufacturing and marketing model selection decisions of a monopoly manufacturer under the mixed carbon policy, and then a win-win result that can encourage the manufacturer to choose the marketing model with lower carbon emissions while at the same time obtaining the optimal profit is discussed. The results show that the production activity will proceed only when the carbon trading price is lower than a certain threshold. When the carbon trading price is lower than a certain threshold, leasing represents the manufacturer’s optimal marketing model. When the carbon trading price is higher than the threshold, selling represents the manufacturer’s optimal marketing model. For the carbon cap Q, there are equilibrium intervals in which the government can achieve the aim of controlling carbon emissions, while not overly affecting the manufacturer’s enthusiasm for production. For the carbon trading price and the carbon tax rate, there are two different intervals in which leasing gains more profit for the manufacturer while emitting lower carbon emissions.

2019 ◽  
pp. 99-114
Author(s):  
Gilbert E. Metcalf

This chapter reviews the nuts and bolts of implementing a carbon tax. Invoking principles of administrative simplicity, ease of compliance, and avoidance of design features that dilute the price signal, it gives practical advice on who should be responsible for collecting the tax and remitting it to the government. It explains how the tax should handle the possibility that we can capture and permanently store carbon dioxide emissions and how we should tax emissions related to internationally traded goods so the United States is not disadvantaged in global trade. Finally, it identifies, and warns policymakers away from, various pitfalls in carbon tax design.


2017 ◽  
Vol 2017 ◽  
pp. 1-11 ◽  
Author(s):  
Yongwei Cheng ◽  
Dong Mu ◽  
Yi Zhang

This paper established cooperation decision model for a mixed carbon policy of carbon trading-carbon tax (environmental tax) in a two-stageS-Msupply chain. For three different cooperative abatement situations, we considered the supplier driven model, the manufacturer driven model, and the equilibrium game model. We investigated the influence of mixed carbon policy with constraint of reduction targets on supply chain price, productivity, profits, carbon emissions reduction rate, and so on. The results showed that (1) high-strength carbon policies do not necessarily encourage enterprises to effectively reduce emissions, and increasing market acceptance of low carbon products or raising the price of carbon quota can promote the benign reduction; (2) perfect competitive carbon market has a higher carbon reduction efficiency than oligarch carbon market, but their optimal level of cooperation is the same and the realized reduction rate is in line with the intensity of carbon policy; (3) the policy sensitivity of the carbon trading mechanism is stronger than the carbon tax; “paid quota mechanism” can subsidize the cost of abatement and improve reduction initiative. Finally, we use a numerical example to solve the optimal decisions under different market situations, validating the effectiveness of model and the conclusions.


2019 ◽  
Vol 11 (10) ◽  
pp. 2765 ◽  
Author(s):  
Cong Zheng ◽  
Quangui Pang ◽  
Tianpei Li ◽  
Guizheng Wang ◽  
Yiji Cai ◽  
...  

This paper examines a farmer’s channel selection in a supply chain led by a retailer, considering carbon emissions and products’ deterioration. Three channels—online channels, retail channels, and dual channels—are proposed. The inventory model of perishable products and the two-stage Stackelberg game model are used to illustrate the operational process. To compare performances of the three channel structures, we further determine the critical points consisting of the profits and the carbon emissions among these channels. The results provide useful insights for supply chain members and the government. Farmers can choose a channel to optimize profit with respect to deterioration rate and product yield, but it might conflict with the aim of least carbon emissions. When the deterioration rate is high, the online channel is not a suitable choice. For the government, the carbon tax contributes to the reduction of carbon emissions, but it also leads to the loss of the farmer’s profit. Additionally, numerical results further illustrate that, from the perspective of the government, transporting and inventory processes are two major sources of emissions, and it is essential to implement carbon tax and exploit low-carbon transportation.


2016 ◽  
Vol 6 (1) ◽  
pp. 121
Author(s):  
Po-Young Chu ◽  
Yu-Ling Lin ◽  
Cyuan-Sian Guo

<p>The challenges from the climate change and the global warming have become one of the most important issues to solve in the world. Under the Kyoto Protocol, countries which have signed the Kyoto Protocol have faced the pressure of reducing greenhouse gas emissions. The two main policies for reducing carbon dioxide are “carbon tax” and “carbon trading”. This research explores which policy will be more suitable for the society and economic environment of Taiwan. This research uses EIA database, the statistical data from the Taiwan Bureau of Energy, Ministry of Economic Affairs, and the data from AREMOS database from 1982 to 2010. The dependent variable is the emission of carbon dioxide, and the independent variables are premium diesel oil price index, population, GDP per capita and the squared term of GDP per capita. The research method is based on the Ordinary Least Squares to estimate the ecological elasticity in the STIRPAT model by analyzing the influence of the change of energy price to the change of the emission of carbon dioxide. From the empirical result, it was discovered that though the energy price and the emission of carbon dioxide was negatively correlated, the ecological elasticity was inelastic. As a result, carbon trading seems a more suitable policy for Taiwan.</p>


Author(s):  
Siba Prasad Mishra

Out line: Carbon dioxide is one of major signatures of Anthropocene. Energy sector contribute maximum to CO2 emission. Reaching 1.4billion population, India must strides to provide affordable, riskless, secure, uninterrupted and cleaner energy with energy security prioritized. The CO2 emission in India was 2201.865 MT CO2 e in 2019 matched to 2172.19 MT CO2e in the previous year. The apocalyptic pandemic of COVID19 have shut down the cities and forced people to migrate to native places as a result the carbon dioxide level has reduced in the sky. Methodology: After carbon tax implementation from 2010 and post Paris Agreement surge in Carbon tax in India’s climate from 2015 there was slow decline of CO2 level in the ever rising global grey sky. The carbon tax had raised faster rate but its effect was slow. Lockdowns, closures and confinement during the pandemic COVID-19 from March 2020 in India is the real-life experience explaining the additive control of carbon level of polluted air along with the burden of carbon tax globally including India. Discussion: The socio-economic impact of shutdowns of all industrial units, power generation and transport sectors along with immediate migration of all workers to their native place have dropped carbon level in air and initialized the concept of blue sky thinking. The present apocalyptic complex pandemic without vaccine has forced the government machinery to be utilized for life, neglecting livelihood. Presently after 4 stages of lock downs, the uplift of restrictions in 5th stage is allowed for lively hood and socio-economic sustenance. Conclusion: As post pandemic measures under economic bankruptcy, the Indian government should initiate strategic plans to restore the socio-economic normalcy and relax the heavy carbon tax on Indians as the carbon level is reduced as a major impact of COVID-19 during 2020.


Author(s):  
Wei Yu ◽  
Tao Wang ◽  
Yujie Xiao ◽  
Jun Chen ◽  
Xingchen Yan

With the strengthening of environmental awareness, the government pays much more attention to environmental protection and thus implements carbon trading schemes to promote the reduction of global carbon dioxide emissions. The carbon Generalized System of Preferences (GSP) is an incentive mechanism for citizens to value their energy conservation and carbon reduction. Individual travel needs to rely on various means of transportation, resulting in energy consumption. Carbon tax or subsidy can only be carried out after carbon GSP accurately measures individual carbon emissions. The big data acquired from the smart cards of passengers’ travels provide the possibility for carbon emission accounting of individual travel. This research proposes a carbon emission measurement of individual travel. Through establishing the network model of the Nanjing metro with a complex method, the shortest path of the passengers’ travels is obtained. Combined with the origination–destination (OD) records of the smart cards, the total distance of the passengers’ travels is obtained. By selecting the operation table to estimate the carbon emissions generated by the daily operation of the subway system, the carbon emissions per kilometer or per time of passenger travel are finally obtained. With the accurate tracking of carbon emissions for individual travel, the government may establish a comprehensive monitoring system so as to establish a carbon tax and carbon supplement mechanism for citizens.


2020 ◽  
Vol 2 (1) ◽  
pp. 13-24
Author(s):  
Tabish Nawab ◽  
Muhammad Faizan Aamir

According to the literature of energy-growth-environment, a numeral of studies aims to recognize the factors of CO2 (carbon dioxide) emissions resulting from significant increases in CO2 emissions in recent decades. The selection of data is the main criticism connected to the present literature. Most of the studies used the overall consumption of energy, and other criticism concerns selecting panel assessment techniques. Nearly all the previous research used general panel approaches that overlooked long term dependence. This empirical study fills the gap revealed in the past studies of the effect of trade openness, income, non-renewable and renewable energy on carbon emissions in the presence of EKC (Kuznets environmental curve) for the ASEAN economies from the time spam 2000 to 2018 using panel ARDL, Pooled Mean Group (PMG) estimation techniques. The results of the PMG estimator confirm the presence of the EKC hypothesis in selected ASEAN countries. Furthermore, Trade and renewable energy minimize carbon dioxide emissions, whereas non-renewable upsurges CO2 emissions. The outcomes also revealed cointegration amongst carbon emissions and renewable energy and one-way causation found from income to CO2 productions, non-renewable energy to carbon emissions, and trade openness toward carbon dioxide emissions. Moreover, it concluded that ASEAN states that the government should advise the industries and all sectors to modify their energy sources from non-renewable energy sources to renewable energy sources. Because it helps to increase the level of energy and economic growth in reducing the carbon emission level.


2021 ◽  
Vol 2021 ◽  
pp. 1-13
Author(s):  
Simin Zhang ◽  
Qi Li

According to China’s 14th Five-Year Development Plan, China aims to peak its carbon emissions by 2030 and achieve carbon neutral by 2060, which will be a major strategy for China to implement in the coming period of time. All kinds of industries need to take the industry characteristics into account and gradually form relative carbon reduction targets according to the National Carbon Summit Action Program. Under the constraints of carbon emission reduction, enterprises face trade-off when making emission reduction decisions. How to systematically optimize the profitable and environmentally friendly decisions, under the consideration of carbon emission production, is gradually becoming a main concern of regulated enterprises. In this paper, a Cournot game model is constructed to explore optimal production carbon abatement decisions for two oligopolistic firms, under the governance of a cap-and-trade mechanism. Real case data collected from China’s airlines is an example to test the validity of our model. The qualitative analysis shows that, through a reasonable output and emission reduction investment, companies are capable of efficiently minimizing the negative impact brought about by the carbon trading system. A numerical experiment indicates that the companies on one side can reach a decision equilibrium in some circumstances, but on the other side, there exists a lack of incentive to reduce their emissions. Additional government incentives or increased investment in technological improvements will be needed to encourage companies to further reduce carbon emissions. In this paper, while analyzing the choice of emission reduction strategy for enterprises under the carbon trading system, it also provides effective emission reduction approaches for the government and industry managers, hoping to provide some references for the establishment of emission reduction system and policy formulation.


2013 ◽  
Vol 869-870 ◽  
pp. 860-865 ◽  
Author(s):  
Jia Yun Xia ◽  
Xiang Lou Gao

Emission tax is one of the most efficient economic mechanisms to reduce carbon emissions. Under the situation that government imposes tax , we develop a two-stage dynamic game model. First, Government achieves total carbon emissions targets by imposing carbon tax. Second, two companies constitute a Cournot duopoly market. Companies adjust their output and the proportion of carbon emissions to maximize profits. And through numerical analysis, we find that: When the Government set up the target emission, it will encourage companies to invest carbon emissions abatement, and enable companies to reduce carbon emissions. And then the Government may reduce the rate of carbon tax. Finally, Government and companies can get win-win situation. In the Cournot duopoly market , Abatement Company has more advantage in the competition of the market and more sustainable under the constraint of carbon tax. Otherwise, Non-abatement company is more sensetive to the changes of carbon tax.


2020 ◽  
Vol 12 (9) ◽  
pp. 3532 ◽  
Author(s):  
Yinjie Zhang ◽  
Chunxiang Guo ◽  
Liangcheng Wang

The low-carbon economy has become the focus of global attention and scientific measurement standards with the concepts of low energy consumption, low pollution, and sustainable development. More and more attentions are paid to the research of low-carbon supply chains. Based on a two-level low-carbon supply chain in the context of carbon trading, a Stackelberg game model was established for government subsidies to determine a coordinated and balanced solution for supply chains in situations dominated by manufacturers. The optimal strategies for low-carbon technology innovation are analyzed within the context of governmental subsidies. This study’s conclusions are as follows: (1) When government subsidies are in place, regardless of who the government subsidies are meant for, manufacturers and retailers that do not generate carbon emissions will transfer the subsidies to the companies that generate carbon emissions by adjusting wholesale prices and retail prices to maximize their own profits. (2) When consumer prices are sensitive, the government’s optimal subsidy intensity increases as consumers’ low-carbon preferences increase. When consumer prices are not sensitive, the government should not provide any subsidies. (3) When consumers’ low-carbon preferences are weak, the retail price of products will decrease with the increase in subsidies; when consumers’ low-carbon preferences are strong, the opposite dynamic occurs.


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