Carbon Emission Tax Research Articles

Carbon tax to lower emissions: the likely impact of carbon emissions tax on households in South Africa

The South African government, along with other countries, has signed the Paris Agreement to commit to lowering carbon dioxide emissions. This has led to the introduction of carbon tax in different countries to combat global warming. The Mexican government was the first to introduce carbon tax amongst the emerging economies back in 2014, while the Argentine government implemented carbon tax in January 2018. The South African government followed suite and introduced carbon tax effective 5 June 2019. Households are expected, however, to be weighed down by the levy as the carbon fuel levy will be implemented at 9 and 10 cents per litre on petrol and diesel respectively. The impact on strained households’ income is expected to emanate from the already high fuel prices, which have been on a rising trajectory since the beginning of 2019.

Meta-heuristic algorithms for solving the sustainable agro-food grain supply chain network design problem

PurposeDue to unceasing declination in environment, sustainable agro-food supply chains have become a topic of concern to business, government organizations and customers. The purpose of this study is to examine a problem associated with sustainable network design in context of Indian agro-food grain supply chain.Design/methodology/approachA mixed integer nonlinear programming (MINLP) model is suggested to apprehend the major complications related with two-echelon food grain supply chain along with sustainability aspects (carbon emissions). Genetic algorithm (GA) and quantum-based genetic algorithm (Q-GA), two meta-heuristic algorithms and LINGO 18 (traditional approach) are employed to establish the vehicle allocation and selection of orders set.FindingsThe model minimizes the total transportation cost and carbon emission tax in gathering food grains from farmers to the hubs and later to the selected demand points (warehouses). The simulated data are adopted to test and validate the suggested model. The computational experiments concede that the performance of LINGO is superior than meta-heuristic algorithms (GA and Q-GA) in terms of solution obtained, but there is trade-off with respect to computational time.Research limitations/implicationsIn literature, inadequate study has been perceived on defining environmental sustainable issues connected with agro-food supply chain from farmer to final distribution centers. A MINLP model has been formulated as practical scenario for central part of India that captures all the major complexities to make the system more efficient. This study is regulated to agro-food Indian industries.Originality/valueThe suggested network design problem is an innovative approach to design distribution systems from farmers to the hubs and later to the selected warehouses. This study considerably assists the organizations to design their distribution network more efficiently.

Berth Allocation and Quay Crane Assignment for the Trade-off Between Service Efficiency and Operating Cost Considering Carbon Emission Taxation

To sustain the development of maritime transportation, “green ports,” which operate with a good balance between environmental impact and economic interests, have been the focus of port operators and government agencies and are required to look into energy saving and emission reduction initiatives. One such reduction strategy proposed by the International Maritime Organization suggested imposing a carbon emission tax on ports as a long-term solution to reduce carbon emissions, but this would definitely increase the operating cost of ports. Quay cranes (QCs), as one type of handling equipment, play an important role in the service efficiency and carbon emission of ports. Therefore, this paper makes an effort to explore the study of the integrated berth allocation and QC assignment problem with the consideration of carbon emission taxation. This problem is formulated as a biobjective integer programming model, aimed at minimizing the total completion delay of all tasks and the total operating costs for all QCs. Finally, numerical experiments are performed to assess the applicability of the proposed models and evaluate the efficiency of the developed solution algorithm.

TIME SERIES ANALYSIS OF CARBON DIOXIDE EMISSION, POPULATION, CARBON TAX AND ENERGY USE IN SOUTH AFRICA

The nexus among carbon emission, energy use, population and carbon tax cannot be overlooked. Such a relationship plays an important role to environmentalists, economists, policy makers and researchers. Thus, this study investigates the nexus among carbon emission, population, energy use and carbon tax from 1970-2018. The objective of this study sought to establish the link among carbon emission, carbon tax, energy use and population. The objective was achieved using the Autoregressive Distributive Lag model (ARDL) since it gives accurate parameters. The results of the study show that energy use and population growth positively influence carbon dioxide emission, while carbon tax reduces carbon emission. Based on the study's results, the study recommends that South Africa`s government promote the use of clean energy and develop ways to reduce population growth in minimizing carbon emission.Keywords: Carbon dioxide emission, population, carbon tax, energy use, South AfricaJEL Classifications: Q43, Q56DOI: https://doi.org/10.32479/ijeep.9618

The Impact of Different Carbon Emission Policies on Liner Shipping

This paper considers the influence of different carbon emission policies for liner shipping. The transportation optimization models under four different forms of carbon emission policies (no carbon emissions constraints, carbon emissions tax, carbon caps, and carbon cap-and-trade) are developed. A real case is given to demonstrate the effectiveness of the proposed models and comparative analysis of the impact of different carbon emission policies on shipowner’s profit and ship carbon emission. It is shown that the carbon caps form is the most direct method for reducing emission; the form of carbon emissions tax is a mandatory measure, which has the greatest impact on the profit of shipping companies; carbon cap-and-trade forms have weaker emission reduction effects, it is easier for enterprises to actively implement emission reductions and be highly motivated in the long run.

Optimal decisions in supply chains with a call option contract under the carbon emissions tax regulation

Carbon emissions tax has been recognized as an effective market-based mechanism to curb carbon emissions, which makes every participant in the supply chain rethink their optimal operational decisions. Motivated by an iron and steel supply chain under the carbon emissions tax regulation, this paper investigates the optimal operational decisions for both supplier and retailer in the supply chain with a call option contract. Specifically, this paper considers a supply chain consisting of one risk-neutral supplier and one risk-averse retailer. To effectively match supply with the uncertain demand while reducing the carbon emissions, the retailer can choose to purchase call options from the supplier, and thus is allowed to adjust the final order quantities after the demand realization. The optimal order and production policies with and without the call option contract are derived. Further, it is demonstrated that the call option contract can benefit both the retailer and supplier, improve the performance of the whole supply chain and decrease invalid carbon emissions. In addition, the introduction of call option contracts can mitigate the effect of carbon emissions tax and risk aversion on the order quantity of the retailer. Finally, numerical experiments based on a real-world iron and steel supply chain are conducted to validate the theoretical findings and provide useful managerial insights.

Sustainable supply chains based on supplier selection and HRM practices

PurposeThe purpose of this paper is to investigate a supply chain consisting of a producer and multiple suppliers of a type of component needed for the production of a certain product. The effects of carbon emission taxes, quality of components and human inspection errors as well as the collaboration among the supply chain members are considered.Design/methodology/approachA mathematical model is formulated for a non-collaborative supply chain, and the optimal policy is shown to be the solution of a constraint optimization problem. The mathematical model is modified to the case of a collaborative supply chain and to account for inspection errors. Algorithms are provided, and a numerical example is given to illustrate the determination of the optimal policy.FindingsThis study offers a new conceptual and analytical model that analyzes the production problem from a supply chain perspective. Human resource management practices and environmental aspects were incorporated into the model to reduce risk, optimally select the suppliers and properly maximize profit by accounting for human inspection error as well carbon emission taxes. Algorithms describing the determination of the optimal policy are provided.Practical implicationsThis study provides practical results that can be useful to researchers and managers aiming at designing sustainable supply chains that incorporate economic, environmental and human factors.Originality/valueThis study can be useful to researchers and managers aiming for designing sustainable supply chains that incorporate economic and human factors.

Impact of carbon emission on imperfect production inventory system with advance payment base free transportation

Most of the works in EPQ model considered that retailer’s purchasing cost of an order should be paid to the manufacturer at the time of its delivering. In the real world situations, few manufacturers may be expect to receive full or a fraction of the purchasing cost in advance and sometimes allow to prepayment into several equal instalments. Also, in classical inventory models it is assumed that no defective items are produced, but real production process may shift from in-control state to out-of-control state due to occurrence of some assignable causes, which results in the quality loss of items. To make the study more realistic, we develop an imperfect production inventory model that incorporates random carbon emissions under consecutive prepayments. Also, production processes are assumed to be imperfect, so they can produce some defective items and some portion of them are reworked in the same cycle. In addition, it is assumed that manufacturer offers an advanced payment based free transportation to the retailer. Carbon emissions are associated with the decisions of production and transportation from manufacturer to retailer. A carbon emission tax is need to pay by the manufacturer due to the environmental regulations. Numerical examples illustrate the proposed models and sensitivity analysis provides some managerial insights for managers.

Planning electric power system under carbon-price mechanism considering multiple uncertainties – A case study of Tianjin

The carbon-price mechanism has been proved to be an effective measure for promoting energy revolution and mitigating climate change. It is of vital importance to develop optimal energy development strategy for electric power-dependent regions by considering the complex interaction among carbon price, carbon emission control, and carbon-responsibility transfer. In order to fill the research gap on the optimal choice of carbon-price mechanism at the urban level, this study is the first attempt to express uncertainties embodied in the carbon price mechanism as interval values, probability distribution and downside risks. The developed risk-aversion-based interval two-stage stochastic programming (RITSP) model is effective in analyzing the effect of internal and electric-transmission related carbon-tax on power system structure. It is discovered that carbon compensation policy for imported electricity is more suitable for Tianjin's power system development. Tianjin would primarily purchase electricity from Inner-Mongolia. With the increase of carbon emission tax, Tianjin would import increasing proportion of electricity from Gansu. Due to the limited endowment of renewable energy in Tianjin, the impact of carbon emission limitations on the renewable energy power generation structure of is trivial, and it has a greater impact on stimulating the development of CCS technology. What's more, Tianjin's future power system planning is more inclined to develop CCS rather than renewable energy.

Retailer’s EOQ model considering demand and holding cost of the defective items under carbon emission tax

This paper presents a retailer’s inventory model considering imperfect production process and material handling that cause some defective items. The defective items possess a fraction of its original utility. Therefore, after a quality inspection, the retailer holds them in a different area until they are sold entirely. The proposed model considers the demand and holding cost of the defective items. It also incorporates carbon emission costs from transportation and storage activities. The objective function is to maximize the expected total profit, which simultaneously minimizes the total carbon emissions. A numerical example illustrates the model implementation. From this data set, the optimum order quantity is 1770.1 units, and the backorder quantity is 580.3 units, which give an expected total profit of $ 1, 227, 945 per year and expected total emissions of 0.765 tonCO2/year. Further analysis shows a trade-off between economic and environmental performance. Incorporating carbon emission costs into an EOQ model will reduce the expected total carbon emissions. However, it also causes a reduction in the expected total profit.

A clean innovation comparison between carbon tax and cap-and-trade system

Both carbon tax and cap-and-trade systems are widely applied to reduce emission. This article compares the clean innovation effects of carbon tax with cap-and-trade systems by a static optimal model. Firstly, both cap-and-trade system and carbon tax stimulates clean innovation and reduce emission. Secondly, cap-and-trade system is more efficient to reduce emission and to promote clean innovation than carbon tax. Finally, firms undertake a loss under carbon tax, while the effects of cap-and-trade system on firms' profits are uncertain, which depends on the carbon cap. In summary, this article supports cap-and-trade system to cope with global climate change, but the regulator should choose the suitable emission cap and carbon trading price to guarantee the efficiency of cap-and-trade system. So, different purposes match with different carbon emission tax policies.

A system analysis tool for sustainable biomass utilisation considering the Emissions-Cost Nexus

There is a wide array of biomass utilisation pathways to mitigate greenhouse gas emissions. The characteristic of biomass, the demand for products, and the local constraints determine the sustainability of utilisation. Generic principles and criteria can be applied to the analysis of specific instances. This work develops a decision-making tool for determining the most sustainable use of biomass for carbon management. The mathematical principles are based on break-even analysis and are visualised in the form of a graphical display for transparent communication of results to decision-makers. An essential feature of this tool is that it allows the Emissions-Cost Nexus to be considered in identifying the most sustainable biomass utilisation pathway under different baseline conditions. Economic instruments such as carbon emissions tax can also be determined and calibrated to direct decisions to specific pathways. The use of this tool is illustrated with a case study considering the pyrolysis of two different sources of biomass (residual biomass and energy crop) and plastic waste. Pyrolysis optimised for energy production is generally preferable unless biochar produced is at the quality for soil amendment. However, the change in baseline conditions, e.g. energy demand or carbon emission intensity, could overturn the initially selected utilisation. This result highlights the importance of a better standard to define avoided emissions for appropriate decision making. The case study also suggested that corn stover optimised for energy has a better emission-cost performance than optimised for biochar and carbon sequestration, unless the multiplier effect of biochar application to soil is higher than 1.4. The presented study shows the applicability of the developed method as a useful tool for sustainable biomass and product utilisation.

The impact of carbon emissions tax on vertical centralized supply chain channel structure

This paper studies the supply chain channel structure which is considered choosing either centralization or decentralization in both a single chain system with a single product and a two chains system with competition in the two substitutable products under carbon emissions tax, respectively. In the two cases, each chain consists of a retailer, who acts as a follower and a manufacturer who acts as a leader. Our analytical results show that: (i) When decentralization is practicable, the government is willing to set a lower carbon tax. (ii) In a single-chain system, the monopolistic manufacturer is better off under decentralization than under centralization when its product emissions pollution is high enough. (iii) In the two chains system, two manufacturers can benefit from decentralization when their product is more emissions polluting. Under certain conditions, comparing with centralization, decentralization enhances two manufacturers’ profits through carbon emissions tax reduction and keeps consumer surplus and social welfare at the first-best level. (iv) The manufacturer’s product quantity under decentralization is lower than that under centralization due to double marginalization effect, which also results in the lower environmental pollution. Our study also suggests that for the seriously emissions polluter, when it utilizes decentralization, the government have to introduce a lower carbon emissions tax in the consideration of abating environmental pollution and of maximizing its profits. The result can also benefit policy-makers in instructing firms to choose decentralization for promoting social development and environmental protection.

Economics Like a Living

An introductory SWOT-analysis of economic growth by neoliberalist economics concludes that within a few decennia the success of neoliberalism has turned upside-down with more severe threats to humanity whereof that of the greenhouse effect has top-priority. The bioecological approach—approaching economics as an encapsulated discipline between ecology and brain science—identifies a Pigovian carbon emission tax (CET) as most effective towards the top-priority threat to humanity that of the green-house effect. However, in the short-term, the democratic center coalitions are too weak to implement CET, due asymmetric levels of economic knowledge between the profession of economists and the public. An accelerated public dissemination of bioecological economics is crucial to provide the option of political implementation of CET.

Do Carbon Prices Limit Economic Growth?

The most common counterargument to taxing carbon emissions is that the policy has a negative impact on economic growth. The author tests the validity of this argument by visualizing the enactment of carbon prices on gross domestic product per capita from 1979 to 2018 and presenting a formal fixed-effects regression analysis of panel data. No connection is found between carbon price implementation and diminished economic growth. This outcome is primarily due to policy design and the general nature of economic growth. The author concludes that this counterargument to enacting carbon prices exists only because of misunderstandings of economic growth and ideology.

Carbon emissions, technology upgradation and financing risk of the green supply chain competition

The major obstacle to reducing carbon emissions is the high cost of adopting clean energy, which reduces the market competitiveness of companies using clean energy. In this paper, we study the asymmetric duopoly models of two competing supply chains with different carbon emission technology. The financing risk of the supply chain's carbon emission technology investment could be available as complete or incomplete information to its competitor. We find that the financing risk of carbon emission technology upgradation does not affect either chain's choices of equilibrium quantities and prices in the complete information case. If this information is incomplete for the traditional supply chain, financing risk plays an important role in determining optimal quantities and optimal prices. To encourage the use of clean energy technology to reduce carbon emissions, government should use the per-product carbon emission tax to encourage the traditional supply chain to upgrade its carbon emission technology, and should encourage financial institutions to provide preferential loans to the supply chain that has carbon emission technology disadvantage in the market.

Dynamic Carbon-Constrained EPEC Model for Strategic Generation Investment Incentives with the Aim of Reducing CO2 Emissions

According to the European Union Emissions Trading Scheme, energy system planners are encouraged to consider the effects of greenhouse gases such as CO 2 in their short-term and long-term planning. A decrease in the carbon emissions produced by the power plant will result in a tax decrease. In view of this, the Dynamic carbon-constrained Equilibrium programming equilibrium constraints (DCC-EPEC) Framework is suggested to explore the effects of distinct market models on generation development planning (GEP) on electricity markets over a multi-period horizon. The investment incentives included in our model are the firm contract and capacity payment. The investment issue, which is regarded as a set of dominant producers in the oligopolistic market, is developed as an EPEC optimization problem to reduce carbon emissions. In the suggested DCC-EPEC model, the sum of the carbon emission tax and true social welfare are assumed as the objective function. Investment decisions and the strategic behavior of producers are included at the first level so as to maximize the overall profit of the investor over the scheduling period. The second-level issue is market-clearing, which is resolved by an independent system operator (ISO) to maximize social welfare. A real power network, as a case study, is provided to assess the suggested carbon-constrained EPEC framework. Simulations indicate that firm contracts and capacity payments can initiate the capacity expansion of different technologies to improve the long-term stability of the electricity market.

An Inventory Model Considering All Unit Discount and Carbon Emissions

Consumer satisfaction is an important factor in the ongoing business process. Companies must be able to meet consumer demands and considers customers’ concerns on price. In a supplier and customer relationship, a given discount will affect the order size. Besides, in the current developing industry, environmental factors must be considered without disturbing the business. Recently, researchers and practitioners develop environmentally-friendly industries so that the environment will be well managed and not polluted. For example, carbon emissions can be managed by optimizing the production operation and product distribution. This paper presents a study on the relationship between discount on the economic order quantity model and the total carbon emissions. This research develops a procurement model by considering an all-unit discount system and carbon emission tax. The aim is to determine the optimal order that minimizes the total cost.

Deep reinforcement learning in World-Earth system models to discover sustainable management strategies.

Increasingly complex nonlinear World-Earth system models are used for describing the dynamics of the biophysical Earth system and the socioeconomic and sociocultural World of human societies and their interactions. Identifying pathways toward a sustainable future in these models for informing policymakers and the wider public, e.g., pathways leading to robust mitigation of dangerous anthropogenic climate change, is a challenging and widely investigated task in the field of climate research and broader Earth system science. This problem is particularly difficult when constraints on avoiding transgressions of planetary boundaries and social foundations need to be taken into account. In this work, we propose to combine recently developed machine learning techniques, namely, deep reinforcement learning (DRL), with classical analysis of trajectories in the World-Earth system. Based on the concept of the agent-environment interface, we develop an agent that is generally able to act and learn in variable manageable environment models of the Earth system. We demonstrate the potential of our framework by applying DRL algorithms to two stylized World-Earth system models. Conceptually, we explore thereby the feasibility of finding novel global governance policies leading into a safe and just operating space constrained by certain planetary and socioeconomic boundaries. The artificially intelligent agent learns that the timing of a specific mix of taxing carbon emissions and subsidies on renewables is of crucial relevance for finding World-Earth system trajectories that are sustainable in the long term.

Sustainable Development Economic Strategy Model for Reducing Carbon Emission by Using Real Options Approach

This paper is aimed at the call of the United Nations Intergovernmental Panel on Climate Change (IPCC) for the need to maintain global warming within a controllable range. The goal is to target carbon emissions to achieve “net-zero” emissions, along with constructing a green energy investment strategy model for firms in response to government’s environmental protection policies. The paper uses the real options approach of dynamic investment decision to construct an investment decision model. Considerations include government taxation of carbon emissions, subsidies to reduce carbon emission policies, and incentives for firms to renew their investments in green energy equipment. Assuming that there is uncertainty in government carbon emission taxes and a reduction of carbon emission subsidies, the changes follow the joint geometric Brownian movement. We used this model to solve the optimum of the threshold for carbon emission taxes and of carbon emission reduction subsidies ratio. If carbon emission taxes and carbon emission reduction subsidies ratio are higher than the threshold, a firm suspends investment in green energy equipment because government subsidies are insufficient. If carbon emission taxes and the carbon emission reduction-subsidy ratio are less than or equal to the threshold, then a firm is qualified for the government’s subsidies for reducing carbon emissions, and the firm invests in green energy equipment. The results of this study can provide reference for firms to invest in green energy equipment, and for government control of carbon emission policies. This policy can effectively reduce carbon emissions and achieve co-construction, co-governance, and the sharing of innovative social governance patterns. Finally, it can create a win–win situation between the government, firms, and society.