Effect of Carbon-tax and Cap-and-trade mechanism on an inventory system with price-sensitive demand and preservation technology investment

Yugoslav Journal of Operations Research

Priyamvada¹  Yadav Shikha¹  Khanna Aditi¹ 

[1] Department of Operational Research, Faculty of Mathematical Sciences, New Academic Block, University of Delhi, Delhi, India;

关键词: carbon-tax;    cap-and-trade;    preservation technology;    selling-price dependent demand;    deterioration;   

DOI  :  10.2298/YJOR190315017K

来源: DOAJ

【 摘 要 】

In today's global decision-making context, government and organizations are highly concerned with environmental degradation caused by carbon emissions. Being environmental conscious, this paper investigates two different carbon policies viz., “Carbon tax and Cap-and-trade mechanism". It is observed that the main sources of carbon emissions are transhipments, inventory holding, inventory deterioration, and its preservation. Demand for the item is considered to be selling price dependent. Further, a comparison between a “carbon tax" and \cap-and-trade" policies has been illustrated. Some important managerial insights are obtained from numerical and sensitivity analyses. The present paper contributes to the existing literature of carbon control policies by developing optimal inventory models dealing with deteriorating items with preservation technology. Results suggest that firms should implement “Cap-and-trade" policy to increase their total profit, which at the same time, will help in reducing the carbon emissions.

【 授权许可】

Unknown