Abstract
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.
Highlights
After the climate conference in Copenhagen, carbon reduction policy has been considered a significant mechanism to reduce the greenhouse effect all over the world [1]
With the promotion of various carbon policies in many nations, it is imperative for the durable goods manufacturers with high carbon emissions to adjust their marketing decisions
Many durable goods has been paid to carbon emissions in the production process
Summary
After the climate conference in Copenhagen, carbon reduction policy has been considered a significant mechanism to reduce the greenhouse effect all over the world [1]. To answer the questions above, this paper aims to examine the monopoly manufacturer’s optimum production quantity decisions made under the constraints of a low carbon policy for both production and consumption processes and analyses their effects on the leasing and selling profit. This paper, based on the condition that the manufacturer obtains the optimal profits, explores the carbon trading price and the carbon tax rate intervals that enable the manufacturer to choose the more profitable marketing strategy and at the same time to achieve a reduction in carbon emissions to the environment. The optimum quantity and marketing model selection strategy for the monopolistic manufacturer are discussed; by comparing the actual carbon emissions of leasing and selling, a strategy for obtaining a win-win result is presented.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
More From: International Journal of Environmental Research and Public Health
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.