Carbon Emission Policies Research Articles

Analyzing the Effect of Carbon Emission Regulations and Policy Tools in China on Reducing Emissions

In China, whilst various policies have been implemented to mitigate carbon emissions in different periods, a lack of appropriate research and a narrow research perspective have manifested as the principal problems in past studies. In this study, China’s carbon emission policies were analyzed using dual-dimensional content analysis, the key characteristics are identified, and solutions are proposed to address the existing challenges. Content analysis was used for estimating the policy objectives; as a result, the findings of this study indicate that China’s carbon emission regulations can be divided into three distinct phases: the budding stage (2007–2013), the initial development period (2014–2018), and the rapid development period (2019–present). During this regulatory evolution, a significant concentration of authority was observed within specific sectors, particularly in the National Energy Administration and the National Development and Reform Commission; meanwhile, the level of cross-sectoral collaboration has remained insufficient. The primary regulatory instruments consist of notifications and advisory opinions, with a noticeable lack of enforceable, high-level legislation, highlighting the need for greater regulatory attention. Furthermore, China’s approach to the reduction in carbon emissions predominantly relies on mandatory command-and-control policy tools, with the key objectives focusing on quantitative control and management, sectoral emission regulations, and adjustments to the energy structure.

Examining the synergy of green supply chain practices, circular economy, and economic growth in mitigating carbon emissions: Evidence from EU countries

Integrating green supply chain strategies and circular economy (CE) practices holds substantial potential for promoting environmental sustainability and reducing CO2 emissions. This study investigates the synergy between green supply chain practices, circular economy, and economic growth (RGDP) impacts on carbon emissions in 13 selected European Union (EU) countries, using a comprehensive panel dataset from 2000 to 2022. We employ both linear and nonlinear panel ARDL models, along with causality tests, to examine how CO2 emissions respond to changes in green supply chain management (GSCM), real GDP (RGDP), and various recycling practices, including bio-waste, municipal waste, and packaging waste. Our findings reveal that GSCM practices significantly reduce carbon emissions in the long run, while economic growth (RGDP) and municipal waste generation correlate positively with increased CO2 emissions. Interestingly, the nonlinear ARDL model highlights that only recycling packaging waste (RWP) exhibits a positive long-run effect on reducing emissions. Additionally, the method of moments quantile regression (MMQR) analysis indicates that the impact of GSCM is more pronounced at higher quantiles of CO2 emissions, whereas the effect of RGDP on emissions remains inconsistent. These results underscore the crucial need to adopt and enhance green supply chain practices within a circular economy framework to achieve substantial carbon emission reductions, holding significant implications for carbon emissions policies in the selected EU countries.

Are air travelers willing to pay for mandatory carbon emission policies? Evidence from China

The aviation industry is one of the fastest-growing sectors in terms of CO2 emissions and also one of the most challenging to decarbonize. China has become the world's second-largest aviation market. While a nationwide mandatory carbon reduction policy has yet to be introduced in China's aviation sector, it may be implemented in the coming years. The implementation of mandatory carbon reduction policies will inevitably raise questions about the distribution of additional costs. Therefore, air travelers' willingness to pay (WTP) and the factors influencing it are critical considerations for policymakers and airlines. However, there is a lack of research on the WTP of Chinese air travelers under mandatory carbon reduction policies. No studies have specifically focused on the regional differences in WTP among air travelers in China. Moreover, existing research on air travelers' WTP for carbon offsets rarely captures the impact of rational, emotional, and social interaction factors. Therefore, this study investigates the WTP of 3424 air travelers across 31 provincial-level administrative regions in China within the context of a carbon tax policy. Using the Heckman two-step model, the study analyzes the impact of rational, emotional, and social interactions on air travelers' WTP. The results indicate that, after removing biased samples, the average WTP among Chinese air travelers is 311.04 CNY ($44.14) per ton of CO2. The highest WTP is observed in the East China region at 341.20 CNY ($48.42) per ton of CO2, while the lowest is in the Northeast region at 263.19 CNY ($37.35) per ton of CO2. Epistemic performance expectancy, social performance expectancy, function performance expectancy, and anticipated pride positively influence WTP. In contrast, effort expectancy negatively impacts WTP. Additionally, social interaction can moderate the effects of certain rational and emotional factors on WTP. It is noteworthy that although anticipated guilt does not directly influence WTP, its positive impact on WTP can be moderated through social interactions. The results of this study can assist governments in formulating effective carbon emission reduction policies for the aviation industry. Moreover, these findings can provide valuable insights for airlines to adjust pricing strategies under mandatory carbon reduction policies, thus holding practical significance.

Peran Wajib Pajak Kendaraan Bermotor Atas Kebijakan Pemutihan Pajak dan Pajak Emisi Karbon di Kabupaten Karawang

Tax whitening policies and motor vehicle carbon emission policies are one of the things that need to be considered, where the tax whitening policy must be seen as to the effectiveness of the policy and the carbon emission tax must be structured so that it can be accepted by the public. This research was conducted with the aim of knowing, analyzing and explaining the tax whitening policy and vehicle carbon emissions tax policy in Karawang Regency. This research uses a qualitative research approach with descriptive analysis methods. Research data was taken through field observations, interviews and literature studies. Based on the results and discussion, it was found that the effectiveness of the Vehicle Tax Reduction Program in Karawang, which is carried out regularly every year and socialization is carried out through various media, has succeeded in creating enthusiasm and community participation. This positive response can be seen from the increase in tax revenue and active taxpayer participation during the tax whitening period. If the vehicle carbon emissions tax policy is implemented in Karawang Regency, it has the potential to reduce pollution levels by 10%. However, taxpayers have had little response to this policy because it will increase the amount of responsibility for paying vehicle tax. The conclusion confirms that the tax whitening program is effective in achieving tax revenue objectives and stimulating community participation. The carbon emissions tax policy still needs to be thoroughly disseminated to the public so that the main objectives of the policy are conveyed well.

Carbon emission constraint: A catalyst for the shift from real economy to financialization?

AbstractThe goals of carbon peak and carbon neutrality have gained significant attention in China. Carbon‐intensive corporates are tasked with decoupling economic growth from carbon emissions. This research examines their potential for financialization based on the compulsory fulfillment requirement of carbon emission allowances and the emission‐free characteristics of financial assets. This research finds that carbon emission policy significantly promotes corporates to allocate more capital toward business operations in the real economy. It leads to an increase in capacity utilization efficiency and profitability for the main business. The findings support that the policy has a positive impact on the real economy.

Sustainable inventory, pricing, and marketing strategies for imperfect quality perishable items with inspection errors and advertisement-, expiration date- and price-dependent demand under carbon emissions policies

The demand for perishable products is affected by freshness levels, advertising efforts and selling prices, among other factors. By virtue of being consumed mostly by humans, quality control is also an important factor in perishable production systems. Moreover, inventory management related operations in such production systems release sizeable quantities of carbon emissions that are often regulated by carbon policies. To study the interactions of all these attributes in the context of a perishable inventory system, this paper proposes four sustainable inventory models for a perishable product with imperfect quality, inspection errors and whose demand depends on the advertising frequency, expiration date and selling price. The emissions released are assumed to be governed by carbon tax and carbon cap policies. Two of the models are developed under the assumption that the quality inspection process is 100% effective while the other two models consider the possibility of committing inspection errors, and additionally, for each pair of models, one is developed under a carbon tax policy and the other under a carbon cap policy. All the models are aimed at jointly optimising the perishable product’s lot-size, advertising frequency and selling price. The numerical results show that the presence of inspection errors leads to 28% and 23% lower profits under carbon tax and cap policies, respectively. Moreover, profit can be maximised by either stocking perishable products with longer shelf lives or targeting customers that engage with advertising mediums and those that are not price-conscious, while emissions can be minimised via the enforcement of carbon policies.

Analysis of reduction of carbon emission and dynamic service policies in a green manufacturing system under isoperimetric fixed servicing budget constraint

In the recent highly saturated, fluctuated as well as competitive marketing situation, economic growth, stability and survival of a manufacturing company are substantial factors for the competent authority of a manufacturing firm. Again, due to the harmful effects of different chemicals and preservative oriented products, consumers gradually show their sensible interest towards the green products and their benefits. Furthermore, emission reduction and carbon emission tax become major issues on the sustainable growth and reputation of a manufacturing company. Fundamentally, considering these factors, this study demonstrates the prior decisions regarding best-found policy of a manufacturing company considering the effects of service with sold eco-friendly (green) products under the effects of emission taxation and reduction policies. The demand effected by level of greenness, price and dynamic service provided to the consumers. Now, due to the budget constraint, manufacturer estimates a fixed budget due to service to the consumers along with the items sold. Again, based on the carbon emission reduction policy, two distinct cases are arisen which are analyzed separately. Due to the budget constraint, maximization problem associated to the model becomes an isoperimetric control problem. Then to illustrate the realistic feasibility the proposed model, a physical example is taken under consideration and it is solved using Teaching–learning-based optimization algorithm (TLBOA) considering each of the cases. Finally, the sensitivity analyses are performed to get some important implications for the manager of the proposed manufacturing system.

The impact of carbon emission regulations on B2C car-sharing platforms’ operating models

PurposeAlthough the impact of carbon emissions regulations is evident to upstream automakers, their influence on downstream B2C car-sharing platforms remains unclear. This article reveals the influence of carbon emission regulations on the performance of supply chain members. In particular, we focused on the decision of B2C car-sharing platforms.Design/methodology/approachWe develop a three-stage dynamic game model consisting of an automaker, a B2C car-sharing platform and consumers.FindingsThe carbon emission cap has a critical threshold. Above this threshold, the regulation is ineffective for the platform’s operating model. Below it, the regulation affects the platform, moderated by customers' green awareness. The threshold initially decreases (weakly) and then increases in awareness. Effective caps reduce profits for the manufacturer, B2C car-sharing platform and supply chain, while ineffective caps see higher profits with increased awareness.Originality/valueFirstly, this paper explores the impact of carbon emission caps on the operational strategies of B2C car-sharing platforms within the sharing economy, complementing existing research. Secondly, it identifies conditions where stricter caps prompt B2C car-sharing platforms to adjust their operational models and offers fresh insights for managers and departments responsible for carbon emission policy formulation. Thirdly, the study uncovers how carbon emission caps affect the performance of supply chain members, providing crucial managerial insights for sustainable operations.

Optimal strategies for carbon emissions policies in competitive closed-loop supply chains: A comparative analysis of carbon tax and cap-and-trade policies

This study addresses a comparative analysis of carbon emissions policies and optimal decisions in competitive closed-loop supply chains. It examines three policy scenarios: a single carbon tax, a single cap-and-trade, and a mixed policy. Competitive intensity, the degree of competition among manufacturers, and product recycling rate, a key element in closed-loop supply chains, can impact the comparative analysis of carbon policies and optimal decisions in competitive closed-loop supply chains. A supply chain system is constructed, consisting of two manufacturers and a shared retailer. We employ a decentralized decision-making approach, with a Cournot game between the manufacturers and a Stackelberg game with the retailer. The analysis considers the impacts of carbon tax, carbon trading price, and recycling rate on optimal decisions and total supply chain profit. The results demonstrate that the mixed carbon policy can yield superior economic and environmental benefits compared with the single carbon tax policy. Mixed policies are likely to be relatively less profitable in most cases than a single cap-and-trade policy. Notably, when the mixed carbon quota exceeds a certain threshold, the mixed policy surpasses the single cap-and-trade policy both economically and environmentally. This study extends previous research by examining the impacts of the recycling rate and various carbon policies on supply chain decisions and profit. The findings offer insights into optimal strategies for reducing supply chain carbon emissions, which benefits policymakers and managers. Finally, it suggests that enterprises should consider a mixed carbon policy to balance economic and environmental goals.

Optimal design of greenfield energy hubs in the context of carbon neutral energy supply

This paper proposes a sequential co-optimization (SCO) framework for the design of greenfield energy hubs, aiming to achieve net zero emissions. The SCO framework offers an evolutionary approach to long-term planning and operation, taking into account various evolving factors such as carbon emission policies, technological and economic advancements in energy supply components, changes in land-use, and developments at different stages of the design horizon. The framework ensures that the design of greenfield developments aligns with their evolving characteristics, determining the optimal dispatch flow for firming renewable energy through co-generation and demand flexibility options like smart loads, electric vehicles, and hydrogen-based systems. A sensitivity analysis is conducted to study the impact of emissions, evolving characteristics of greenfield developments, and techno-economic aspects of supply units on the energy hub design. Case studies demonstrate that the proposed design enables large-scale distributed energy systems to meet local energy demand and participate in the electricity market. The SCO framework provides a robust and flexible platform for the correlated optimization of planning and operation of greenfield energy hubs, for advancing towards net zero emissions.

Inventory pricing model under different carbon emission policies

Considering carbon emission in inventory management model is a hot topic in current academic circles. Studying inventory pricing can provide managers with better managerial insights. Economic order quantity model mainly solves the inventory management problem of demand determination. However, due to the complex market environment in real life, it is difficult to meet the conditions of constant demand. In addition, with the enhancement of low-carbon awareness of enterprises, the study of pricing model based on low-carbon policies has also attracted the attention of a large number of scholars. The robust optimization theory is applied, the inventory pricing model of demand fluctuation under carbon cap, carbon tax and carbon cap-and-trade policies is considered, the robust equivalence form of the problem is studied. The profit comparison under different policies is given. Numerical experiments show that the carbon cap-and-trade policy can better control the carbon emission of enterprises.

Sustainability in a Reverse Logistics Inventory Model with Carbon Emission, Reliability and Credit Financing Policy

Sustainability in a Reverse Logistics Inventory Model with Carbon Emission, Reliability and Credit Financing Policy

Impact of Carbon Emission Policy on Fresh Food Supply Chain Model for Deteriorating Imperfect Quality Items

Impact of Carbon Emission Policy on Fresh Food Supply Chain Model for Deteriorating Imperfect Quality Items

Carbon emission scenario simulation and policy regulation in resource-based provinces based on system dynamics modeling

In China, numerous cities are resource-based, with substantial energy consumption, emissions, and pollution and they expand quickly and economically, notably enhancing their carbon emissions. Nevertheless, they have considerable potential for emission reduction. Assuming the “dual-carbon” goal as a backdrop, this study considered Shanxi Province, the largest coal resource-based province in China, for a case in point. It established a carbon emission system dynamics model, constructs five carbon emission systems, namely, economy, energy, population, land, and environment, and sets up four scenarios. Finally, in light of the scenario simulation's outcomes, we explored the optimal path and policy regulations for resource-based cities to reach carbon peaks. The study conclusions show the following: (1) All factors are exhibit correlated with each other, and their influence in the four scenarios is ranked as follows: GDP, energy consumption, industrial structure, total population, land-use structure. (2) Although GDP is a key factor influencing total carbon emissions, regulating only a single factor cannot achieve the carbon emission target. Thus, all factors need to be considered and synergistically regulated to achieve optimal carbon benefits. (3) Carbon emissions are higher and grow faster in the Baseline Development Scenario and the Fast Development Scenario, particularly in the FDS scenario, where they reach 614.48 million tons. Both scenarios exceed the peak carbon target by 4.4% and 7.1%. (4) In the Low-Carbon Optimization model and Resource Saving Scenario have low and slow-growing carbon emissions. Although the RSS has lower carbon emissions of 539.83 million tons, sacrificing sustainable development to reduce these emissions is unrealistic. In comparison, the LOS scenario represents the optimal path for achieving sustainable growth and lowering carbon emissions in Shanxi Province, with emissions totaling 550.99 million tons. This study implements strategies to manage the pace of population expansion, optimize the industrial structure, modify the energy structure, and optimize the allocation of land resources. The results of the study not only do our findings offer data reinforcement and implementation strategies for the low-carbon conversion of similar resource-based cities in China, but also offer case studies for different kinds of resource-based cities that fulfill the “carbon peak” objective.

Stackelberg–Cournot dynamic game and risk management of heterogeneous supply chain enterprises under government carbon emission policy

AbstractThis paper presents the development of a model incorporating two manufacturers in a competitive carbon emissions trading market with varying degrees of market competitiveness. Among them, the manufacturer is in a limited market leadership position, and the game process lies between the Stackelberg game and the Cournot game. Additionally, the Pareto solution sets at various model periods are investigated. In addition, the model examined the effect of dynamic government adjustments on carbon emission limitations. The paper conducts an analysis of the fundamental factors contributing to system instability and evaluates the influence of various factors on the model's stability. At the same time, we also discussed the influence of government adjustment strategy on retail decision‐making and stability. The results highlight that the instability of the system is mainly caused by the adjustment strategy of the market leader, whereby the system becomes increasingly unstable as the market leader's position becomes stronger. In addition, the government's implementation of carbon emission limits will promote market stability.

Using Game Theory to Explore the Multinational Supply Chain Production Inventory Models of Various Carbon Emission Policy Combinations

This study uses Stackelberg game theory, considering different combinations of carbon emission reduction policies and that high-carbon-emission enterprises may face various carbon emission reduction regulations, to explore the production inventory problems in a multinational supply chain system. The purpose is to determine the manufacturer’s optimal production, shipping, carbon reduction investment, and the retailer’s replenishment under the equilibrium for different carbon emission policy combinations. To develop the production inventory models, this study first develops the total profit and carbon emission functions of the supply chain members, respectively, and then obtains the optimal solutions and total profits of the manufacturer and the retailer under different carbon emission policy combinations through the mathematical analysis method. Further, this study used several numerical examples to solve and compare the proposed models. The results of numerical analysis show that regardless of the increase in carbon price or carbon tax, the manufacturer and retailer will adjust their decisions to reduce carbon emissions. Specifically, an increase in the carbon price contributes to an increase in the total profit of manufacturers, while an increase in the carbon tax reduces the total profit of manufacturers. This study also explores a sensitivity analysis on the main parameters and has yielded meaningful management insights. For instance, in cases where low-carbonization strategies are required, the manufacturer or retailer can effectively reduce the carbon emissions resulting from production or purchasing activities, thereby significantly reducing overall carbon emissions. It is believed that the results of this study can provide enterprises/supply chains with reference to their respective production, transportation, carbon reduction investment, and inventory decisions under carbon emission policies, as well as information on partner selection and how to adjust decisions under environmental changes.

Research on coupling optimization of carbon emissions and carbon leakage in international construction projects

Due to the rapid economic development of globalization and the intensification of economic and trade exchanges, cross-international and regional carbon emissions have become increasingly severe. Governments worldwide establish laws and regulations to protect their countries' environmental impact. Therefore, selecting robustness evaluation models and metrics is an urgent research topic. This article proves the reliability and scientific of the assessment data through literature coupling evaluation, multidisciplinary coupling mathematical model and international engineering case analysis. The innovation of this project's research lies in the comprehensive analysis of the complex coupling effects of various discrete data and uncertainty indicators on the research model across international projects and how to model and evaluate interactive effects accurately. This article provides scientific measurement standards and data support for governments worldwide to formulate carbon tariffs and carbon emission policies. Case analysis data shows that the carbon emission ratio of exporting and importing countries is 0.577:100; the carbon trading quota ratio is 32.50:100.

Three-echelon circular economic production–inventory model for deteriorating items with imperfect quality and carbon emissions considerations under various emissions policies

Traditional production systems have a sole focus of maximising economic outcomes but due to the world’s ever-growing awareness about environmental issues, circular production systems, with a dual focus of maximising economic output and minimising environmental impact, have become prevalent in recent years. These types of production systems incorporate circular economy initiatives in their operational processes with the aim of reducing their carbon footprints. However, this is a voluntary measure to reduce carbon footprints and for this reason, various governments have introduced regulatory measures to involuntarily reduce carbon footprints of production systems. These regulatory measures include carbon tax, cap, cap-and-trade and cap-and-offset policies that are designed to reduce carbon emissions from production processes. With this in mind, this paper proposes an integrated sustainable production–inventory model for a three-echelon supply chain for imperfect quality deteriorating items with a circular economy indicator under various carbon emissions regulations. Using four different combinations of functions for both the demand rate and unit gross profit and four different carbon emissions regulations, 16 variants of the model are solved and analysed using heuristic algorithms. The model variants are not only aimed at optimising inventory replenishment decisions but also the circularity economy indicator of the deteriorating inventory. Of the 16 variants, the highest profit is achieved for the logistic demand and linear profit functions combination under cap-and-offset, despite a circularity indicator of 81.75%. The results also show that carbon emissions policies are effective at reducing the supply chain’s carbon footprint, albeit with a slight impact on the profit.

Synergic effect of carbon regulation policies and multi-period credit financing in global retailing with reworking

Carbon emissions regulation has become one of the most important priorities for the business sector these days to enhance customer satisfaction. Carbon emissions regulation in the retail sector is crucial to mitigate the industry's environmental impact. It promotes the company's adherence to emission standards by conducting environmentally friendly practices like energy-efficient operation and supply chain management. This study considers various carbon emissions regulation policies, especially with reworking which repairs the imperfect items in global retailing to enhance customer satisfaction. To detect defects, a machine-based autonomated inspection is used. Also, for active global retailing, multi-period credit financing is applied in the model. Under such multi-period credit financing and carbon emission regulations, we optimize cycle time, selling price, and investments for autonomated inspection and product biodegradability to maximize the profit of the retail industry. Nine different cases regarding the carbon emission policy and credit financing are studied and compared. We found that the retail industry will earn a maximum profit when cycle time is less than the first credit period under a limited carbon emissions policy which is at least 0.09% higher compared to other cases. Credit financing helps to increase the profit by 1.57%. Consequently, profit becomes the least when cycle time is greater than the second delay period under the carbon taxation policy.

The Impacts of Payment Schemes and Carbon Emission Policies on Replenishment and Pricing Decisions for Perishable Products in a Supply Chain

In the supplier–retailer–consumer system, the retailer’s replenishment and pricing strategies impact the entire transaction process, forming a comprehensive trading market. Suppliers offer advance-cash-credit payments to retailers, while retailers provide customers with cash-credit payment options. In the current health-conscious consumer market, purchasing decisions are influenced not only by commodity prices but also by the freshness of products, particularly perishable goods. Growing awareness of climate change and the advent of carbon emission policies have raised concerns about the environmental costs of business transactions. This study focuses on perishable products whose demand is influenced by both price and freshness. It explores the adoption of various payment methods by suppliers and retailers, as well as the impact of carbon emission cap-and-trade policies or carbon tax policies on management and pricing strategies. Suitable inventory models are established to determine the optimal replenishment and pricing strategies for maximizing the current value of total profit. We illustrate that the current value of total profit demonstrates joint concavity concerning both the selling price and the replenishment time. Finally, we verify the proposed models using numerical examples and present the findings of sensitivity analyses. The findings of this study yield several valuable insights for inventory management of perishable goods.