Effect of Green Technology Investment on a Production-Inventory System with Carbon Tax
Carbon emissions play the central role in global warming. Manufacturing firms are significant contributors to carbon emissions. In many countries, regulatory authorities are taking actions to reduce emissions. Carbon taxation and cap-and-trade schemes are two mechanisms implemented in many countries...
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| Veröffentlicht in: | Advances in Operations Research Jg. 2017; H. 2017; S. 1 - 12 |
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| Format: | Journal Article |
| Sprache: | Englisch |
| Veröffentlicht: |
Cairo, Egypt
Hindawi Publishing Corporation
01.01.2017
Hindawi John Wiley & Sons, Inc |
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| ISSN: | 1687-9147, 1687-9155 |
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| Abstract | Carbon emissions play the central role in global warming. Manufacturing firms are significant contributors to carbon emissions. In many countries, regulatory authorities are taking actions to reduce emissions. Carbon taxation and cap-and-trade schemes are two mechanisms implemented in many countries. In the present paper, the author analyzes a production-inventory model under a carbon tax system. The production rate is assumed to be a decision variable and can be set at any level within machine limits. A proportion of items produced are defective, and this proportion depends on the production rate. Demand depends on the selling price. Unit price is a decreasing function of the production rate. Emissions can be reduced to some extent by capital investment on green technology, and this capital investment amount is a decision variable. Customers are categorized as retail customers and wholesale customers. A discount is offered to the wholesale customers on the regular selling price. The results are illustrated by a numerical example and a sensitivity analysis is performed. |
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| AbstractList | Carbon emissions play the central role in global warming. Manufacturing firms are significant contributors to carbon emissions. In many countries, regulatory authorities are taking actions to reduce emissions. Carbon taxation and cap-and-trade schemes are two mechanisms implemented in many countries. In the present paper, the author analyzes a production-inventory model under a carbon tax system. The production rate is assumed to be a decision variable and can be set at any level within machine limits. A proportion of items produced are defective, and this proportion depends on the production rate. Demand depends on the selling price. Unit price is a decreasing function of the production rate. Emissions can be reduced to some extent by capital investment on green technology, and this capital investment amount is a decision variable. Customers are categorized as retail customers and wholesale customers. A discount is offered to the wholesale customers on the regular selling price. The results are illustrated by a numerical example and a sensitivity analysis is performed. |
| Audience | Academic |
| Author | Datta, Tapan Kumar |
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| ContentType | Journal Article |
| Copyright | Copyright © 2017 Tapan Kumar Datta. COPYRIGHT 2017 John Wiley & Sons, Inc. Copyright © 2017 Tapan Kumar Datta.; This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. |
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| SubjectTerms | Air quality management Analysis Carbon dioxide Carbon footprint Carbon taxes Clean technology Costs Emissions trading Environmental regulations Environmental tax Fossil fuels Global warming Green technology Greenhouse effect Greenhouse gases Inventory Inventory control Inventory management Manufacturing Operations research Order quantity Production management Production planning Regulation Remanufacturing Socially responsible investments Supply chains Sustainability Taxation |
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| Title | Effect of Green Technology Investment on a Production-Inventory System with Carbon Tax |
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