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.

Highlights

  • The international community has paid considerable attention to environmental protection in recent years

  • 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]

  • This paper aims to analyze the relevant analysis of carbon emissions in the tire industry

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Summary

Introduction

The international community has paid considerable attention to environmental protection in recent years. 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]. According to the above research, the effective way to reduce emissions is to implement carbon tax collection and formulate carbon rights trading mechanism. The purpose of this paper is to combine mathematical programming, TOC, and ABC to formulate a green production decision model with carbon taxes and carbon right costs, in order to achieve the optimal product mix decision under various constraints and to analyze the effect on profit of carbon taxes. Studies on the implementation of carbon trading have provided useful insights and helped to reduce carbon emissions [21,22,23]

Carbon Emissions Cost and Carbon Tax
Application of TOC Theory of Constraints
Tire Manufacturing Process
Forming
The Model Formulation
Objective Function
The Associated Constraints
Summary
Illustration
Model 1
Model 3
Sensitivity Analysis
Findings
Conclusions

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