Carbon Tax Regulation Research Articles

An inexact fractional multi-stage programming (IFMSP) method for planning renewable electric power system

The growing levels of greenhouse gas (GHG) emissions have made renewable energy sources a crucial aspect of power generation, especially in developing countries. However, with more investment in additional renewable energy components and the mandatory decommissioning requirement of the thermal stations, the uncertainty of renewable energy availability and the changeable policy environment have brought great complexity to the electric power systems. Hence, an innovative approach, the inexact fractional multistage programming (IFMSP), has been proposed to address the challenges of electric power system planning in transitioning to clean energy, specifically in South Africa from 2021 to 2050. The IFMSP approach balances economic benefits and GHG emission mitigation, providing a more constrained optimum interval solution than binary integer programming. The results illustrated a decline in the expansion of conventional energy sources, with natural gas, wind energy and solar energy taking the place of thermal power generation. In terms of performance, solar power ranks second to wind. By assessing various expansion scenarios, it is demonstrated that zero nuclear energy growth would yield more competitive economic advantages and fewer GHG emissions than no geothermal expansion, whereas a 20% increase in gas expansion capacity would achieve the most optimal ratio at [304.2, 317.3] (Rand/t CO2 eq). By utilizing the proposed approach, decision-makers in developing countries can generate multiple expansion scenarios for Belt and Road Initiative (BRI) investments. This enables them to identify generation modes, capacity expansion schemes, financial planning, and carbon tax regulations, even under complex uncertainties.

Modeling a Carbon-Efficient Road–Rail Intermodal Routing Problem with Soft Time Windows in a Time-Dependent and Fuzzy Environment by Chance-Constrained Programming

This study explores a road–rail intermodal routing problem. To improve the carbon efficiency of transportation, reducing CO2 emissions is considered by the routing. Soft time windows are incorporated into the routing to optimize the timeliness of the first-mile pickup and last-mile delivery services in intermodal transportation. The routing is further modeled in a time-dependent and fuzzy environment where the average truck speeds of the road depend on the truck departure times and are simultaneously considered fuzzy along with rail capacities. The fuzzy truck speed leads to the fuzziness of three aspects, including speed-dependent CO2 emissions of the road, a timetable-constrained transfer process from road to rail, and delivery time window violation. This study formulates the routing problem under the above considerations and carbon tax regulation as a combination of transportation path planning problem and truck departure time and speed matching problem. A fuzzy nonlinear optimization model is then established for the proposed routing problem. Furthermore, chance-constrained programming with general fuzzy measure is used to conduct the defuzzification of the model to make the problem solvable, and linearization techniques are adopted to linearize the model to enhance the efficiency of problem-solving. Finally, this study presents an empirical case to demonstrate the effectiveness of the designed approach. This case study evaluates the performance of carbon tax regulation by comparing it with multi-objective optimization. It also focuses on sensitivity analysis to discuss the influence of the optimistic–pessimistic parameter and confidence level on the optimization results. Several managerial insights are revealed based on the case study.

Energy conservation strategy and coordination of a closed-loop supply chain with risk-averse members under carbon tax regulation

Energy conservation strategy and coordination of a closed-loop supply chain with risk-averse members under carbon tax regulation

The Urgency Of Carbon Accounting Based on Willingness to Pay Carbon Tax

Main Purpose - The research aims to understand human behavior that plays an important role in reducing CO2 emissions through the concept of WTP which is based on psychological factors, that cover self-esteem, mortality salience, and health consciousness along with demographic factors including income level, knowledge, education, and gender. Method - This study used a survey method, where data was collected through questionnaires that were distributed online to respondents with ages over 17 years. This study collected 150 respondents and data were analyzed using PLS-SEM.Main Findings - The results of the study show that the urgency to legitimize carbon taxes is seen as important by respondents. The average additional burden that respondents are willing to pay is Rp.25.000,- per month. Besides that, all psychological and demographic factors are proven can influence respondents' willingness to pay carbon taxes except for the relationship between income-WTP and self-esteem-health consciousness-WTP.Theory and Practical Implications - The results of this analysis provide insight into the strong will of individuals that can encourage individuals to pay for losses due to carbon emissions based on TMT which will help the regulator to legitimize the implementation of carbon accounting followed by formulating the carbon tax regulations comprehensively as part of global climate governance. Moreover, regulators can focus on the principles of improving the quality of human life rather than just technical issues.Novelty - This research helps to understand the WTP taxes associated with a psychological perspective within the TMT framework.

Strategic interactions between product line design and carbon tax regulation

Along with carbon neutrality becoming recognized worldwide as one of the most effective ways to address global climate change and environmental challenges, there have emerged numerous attempts on the optimization of manufacturing and production management when facing carbon regulation. However, the previous literature considers mainly firms selling only single product variants, while consumer products in the real world are often sold in product lines. To gather theoretical guidance to achieve carbon neutrality, it is both necessary and urgent to explore the interactions between product line selling and carbon regulation. This paper analyzes the strategic interactions between product line design and carbon tax regulation. We show that a short product line may weaken policy makers’ incentive for carbon tax regulation if the unit environmental damage of production is sufficiently small. We also show that a longer product line does not necessarily lead to a higher carbon tax rate (CTR) unless the unit environmental damage of production is not sufficiently large. Additionally, we identify the condition under which a firm can have more incentives to extend product line with a predetermined CTR (pre-CTR) than that with a post-determined CTR (post-CTR). That is, unless the product line extension fee is sufficiently large, a firm with a pre-CTR would have more incentives to extend product line than that with a post-CTR when the unit environmental damage is moderate.

Studying the effect of carbon tax policy on a dual-channel supply chain for deteriorating products

The present study tries to investigate a joint inventory-pricing control problem in a dual-channel supply chain network for deteriorating products under carbon tax regulations. To this end, a mathematical model is developed with an objective function that can maximize the total profit. Then, the model is solved using the hybrid algorithm combined with the simulated annealing (SA) algorithm and the Gradient descent search. The theoretical results show that the developed model is concave. Findings suggest that an increase in the deterioration rate reduces the total profit. Moreover, whenever the carbon tax rises, the manufacturer tends to decrease the number of deliveries to the retail store but increases the amount of the delivered products in order to avoid unnecessary costs. Based on our results, price elasticity is the most influential parameter to determine the total profit of the dual-channel supply chain for deteriorating products under carbon tax policies.

Integrating prepayment installment, pricing and replenishment decisions for growing items with power demand pattern and non-linear holding cost under carbon regulations

Increasingly strict carbon regulations enforced by regulators are encouraging companies to seek better ways to manage inventories with a desire to reduce carbon emissions from their operations. This work investigates joint prepayment installment, pricing and replenishment decisions for a growing item under cap-and-price, cap-and-trade and carbon tax regulations with the goal of maximizing a livestock farming company's profit while simultaneously reducing total carbon emissions. To investigate the work in a more general perspective, the consumption structure of the slaughtered growing items is considered as a power pattern in both price and storage time, while the cumulative holding cost to hold a weight unit up to any time is a non-linear function of storage time under an imposed prepayment mechanism. This study examines, for the first time, the best prepayment installment decision for a growing item after characterizing its properties theoretically under carbon regulations. Integrating all possible cases of the optimal solutions from theoretical outcomes, an algorithm is suggested to achieve joint optimal decisions for the farm. Five different numerical examples are solved to examine the working performance of the algorithm and finally, several management insights are provided by investigating the changing pattern of the optimal strategies for variation of the system parameters. The derived outcomes highlight that the cap-and-price policy performs well both economically and environmentally for the livestock farming company when the penalty is less than or equal to the reward for each unit of carbon emissions. Furthermore, increased customer demand in the early stages of the cycle compels the farm to purchase a higher number of growing items amid a higher number of prepayment installments and set a lower selling price for the slaughtered growing items for increasing profit. The farming company should try to finish the prepayment using multiple payments in small amounts when the prepayment portion, the rate of interest charged and the authorized time period for prepayment are all high.

Closed-loop supply chain coalitional cooperation and coordination under differentiated carbon tax regulation

This paper presents a systematic two-stage analysis to improve a three-echelon closed-loop supply chain cooperation and coordination under differentiated carbon tax regulation, which enriches non-cooperative and cooperative game theory applications in remanufacturing circular economies. Firstly, we utilize non-cooperative games to explore the optimal operations of new and remanufactured products across five coalitional models. Then, we adopt cooperative games to achieve profit coordination. Specifically, Shapley values are employed for allocating a grand coalition profit in a centralized setting. In order to alleviate carbon taxpayers' fairness concerns, we proposed a novel revised Shapley value algorithm incorporating differentiated carbon tax costs to improve their utility. The results show that regulators can reduce emissions by adjusting carbon tax rates on different products more effectively. The optimal environmental and economic performance can also be achieved by forming a grand coalition. Shapley value algorithms achieve the supply chain system Pareto improvement. Moreover, carbon taxpayers' (i.e., manufacturer and remanufacturer) utilities in our revised Shapley are improved by 20.15% and 77.71%, respectively, compared with the classical Shapley value under certain conditions. These results benefit regulators' carbon tax policy formulation and industrial managers’ remanufacturing practices.

A generalized payment policy for deteriorating items when demand depends on price, stock, and advertisement under carbon tax regulations

The down-cash-credit method is quite common in today’s real-world commercial transactions. In light of existing legislation to decrease carbon pollution, this research aims to investigate how down-cash-credit payments impact business strategies for perishable items in the context of the most commonly utilized carbon tax legislation. Specifically, this article demonstrates an inventory system from the buyer’s point of view in which (a) the demand curve is determined by the price, displayed volume, and frequency of advertisement, (b) the product is constantly deteriorating, (c) the supplier provides one of the frequently utilized down-cash-credit payment methods, and (d) the buyer gets taxed at a consistent rate for each ton of carbon emissions. Moreover, the goal of pharmaceutical stores is to optimize overall profit by simultaneously determining order cycle, price, and frequency of advertisements. Finally, the theoretical results are validated by solving two numerical illustrations and conducting a sensitivity analysis of the main factors resulting from the following managerial implications: (a) credit pay provides the minimum sales price, but the maximum profit margin of any financing method, (b) an increase in scale demand raises selling price and length of the cycle while increasing overall profit significantly.

Peran Regulasi Keuangan Berkelanjutan terhadap Tingkat Kesiapan Wajib Pajak dalam Penerapan Pajak Karbon di Indonesia

The carbon tax regulation that will be implemented in Indonesia has been postponed considering the macroeconomic situation that is happening nowadays. This research studies the readiness for its implementation in Indonesia by assessing the implementation of POJK No. 51 in 2021 which regulates the carbon emission disclosure in the sustainability report. In addition, this research discusses an effective scheme for carbon tax implementation in Indonesia based on POJK No. 51. The data that is used in this research mainly is secondary data obtained from coal sector companies’ sustainability reports in Indonesia which are listed in Bursa Efek Indonesia for 2021, government’s regulation, and previous studies about the carbon tax. It is found that 34,62% of the coal companies haven’t disclosed their carbon emission. However, POJK No. 51 is proven to improve the readiness of the coal sector companies for the tax carbon implementation. Carbon tax implementation can use sustainability report that published by each company, which already contains the carbon emission. Even though, a more detailed regulation is still needed to support the carbon tax implementation based on the carbon emission disclosure by coal companies in 2021.

Pajak Karbon dalam Langkah Pelestarian Lingkungan

The purpose of this study is to analyze Indonesia's commitment to reducing greenhouse gas emissions, to examine carbon tax regulations that have been set by the government, and to analyze the potential for carbon taxes in environmental preservation. The research method used is the descriptive-qualitative method. The research results show that the Indonesian government is committed to reducing GHG emissions. This is contained in sustainable and environmentally sound development activities and is on the agenda of the National Medium-Term Development Plan. The government also stipulates laws and regulations to provide legal certainty and reduce gas emissions. The government has passed a carbon tax regulation as an effort to accelerate climate change mitigation. Carbon tax provisions are applied to the consumption of products that contain carbon or activities that produce carbon emissions. Setting carbon tax rates equal to or higher than the price of carbon in the carbon market per kilogram of carbon dioxide equivalent or equivalent unit Although carbon prices follow price movements in the carbon market, the government sets a floor on carbon tax rates. Thus, carbon taxes serve as a tax instrument used to correct social costs arising from negative externalities due to environmental pollution.

Optimal decision making, using interval uncertainty techniques, of a production-inventory model under warranty-linked demand and carbon tax regulations

Optimal decision making, using interval uncertainty techniques, of a production-inventory model under warranty-linked demand and carbon tax regulations

Impact of Carbon Tax and Environmental Regulation on Inbound Cross-Border Mergers and Acquisitions Volume: An Evidence from India

Climate change, global warming, and carbon emission are global issues. Countries are strengthening their environmental regulations to mitigate the emission problem. According to the pollution haven hypothesis, rich countries invest in emerging economies where the institutional framework is weak to migrate the emissions. With this background, this study examines the impact of the introduction of the carbon tax in India and environmental regulation restriction distance on India’s inbound cross-border mergers and acquisitions (a form of foreign direct investment) volume using a 979 country-pair-year observation sample. The Tobit regression model findings suggest that carbon tax introduction and environmental regulation distance negatively impact India’s inbound cross-border mergers and acquisitions volume. Furthermore, control of corruption intensifies its impact by effectively moderating them. The results indicate that India can avoid becoming a pollution haven by strengthening its environmental policies and controlling corruption. These results provide insight into strengthening the policies relating to environmental regulations and continuing the efforts required to control corruption in India.

Dynamic production and carbon emission reduction adjustment strategies of the brand-new and the remanufactured product under hybrid carbon regulations

In recent years, the government and consumers are concerned about environmental issues. Motivated by carbon regulations and consumers’ low-carbon preferences, manufacturers have implemented carbon emission reduction (CER) through green technologies and remanufacturing. Most of the existing literature related to the low-carbon supply chain considered single carbon regulation and assumed that enterprises are completely rational. However, in practice, it is rather difficult for the government to achieve the carbon reduction target only by a single carbon regulation, and manufacturers are bounded rational due to the complexity of the low-carbon market. Consequently, based on bounded rationality, this paper aims to investigate the dynamic production and CER adjustment strategies of the brand-new and the remanufactured product under hybrid carbon regulations, i.e. the carbon tax regulation and the cap-and-trade regulation. Furthermore, the impacts of adjustment parameters and important parameters on decision variables, expected profits, and total carbon emissions are explored. The results showed that adjustment speeds of production and CER have significant impacts on the system stability. For both manufacturers, excessive production and CER adjustment strategies not only reduce their own expected profits but also cause more harm to the environment. In addition, the increase of the carbon tax, the carbon trading price, and consumers’ low-carbon preferences all shrink the stable regions of adjustment parameters, but the increase of these parameters can promote CER behaviors and reduce total carbon emissions. Finally, the feedback control method was used to control the chaos of the supply chain system.

A Supply Chain Inventory Model for Deteriorating Products with Carbon Emission-Dependent Demand, Advanced Payment, Carbon Tax and Cap Policy

Emissions are a major contributor to climate change. Some nations are now concentrating their efforts on lowering carbon emissions. In many nations, carbon taxes and caps are the main tools that are used to attain this goal. The majority of the inventory retailer-supplier model assumed that the retailer’s order cost should be paid to the supplier at that time when he gets their order. Few suppliers can expect to receive the entire or a portion of the total cost in advance from retailers in this real-life situation, and others will offer prepayment in numerous equal installments. The advance payment offers the customer the lowest price for the order, but it has the largest carbon footprint. The advance payment has a great impact on carbon emissions and production. Therefore, this study looked at a carbon tax and cap supply chain inventory model for deterioration with carbon emission-dependent demand, and Three payment options: Preliminary, cash, and post-payment have been considered. The model was constructed by first assessing the overall cost of supply chain participants with carbon tax regulation. Finally, we illustrate numerical examples of the proposed approach and its outcomes. The implications of adjusting the various parameters on the optimal total cost are also graphically and tabularly discussed in depth. With the help of Mathematica version-12, a sensitivity analysis was also performed. Several management takeaways are also emphasized. These findings are incredibly managerial and enlightening for enterprises seeking profitability while still fulfilling their environmental duties, and this study is extremely useful for any country’s government policy.

Dynamic analysis of a dual-channel closed-loop supply chain with fairness concerns under carbon tax regulation.

In this work, we study a dual-channel closed-loop supply chain (CLSC) where the manufacturer sells the new products via one fair caring retailer in the traditional channel and distributes the remanufactured products through her own direct channel in the presence of the carbon tax regulation. After solving the single-period Stackelberg game model by backward induction and analyzing the impacts of key parameters on the optimal pricing strategies and the performance of channel members, a multi-period dynamic Stackelberg game model with heterogeneous players is further established. The local stability of the Nash equilibrium point and complexity properties of the model are investigated by numerical simulation. The results reveal that (1) the retailer's fairness concern degree is negatively related to the optimal wholesale price as well as positively related to the optimal retail price of the new product. A high level of consumer discount perception for the remanufactured product is conducive to the manufacturer obtaining more profits while it is detrimental to the retailer. (2) The excessive value of the price adjustment speed, carbon tax rate or retailer's fairness concern degree has a strong destabilization effect on the system's stability. (3) The manufacturer suffers profit loss while the retailer's utility levels are elevated when the system falls into periodic cycles and chaotic motions. (4) The delay feedback control method can eliminate the chaos effectively in the dual-channel CLSC system.

Correction to: Reselling or marketplace mode for an online platform: the choice between cap-and-trade and carbon tax regulation

Correction to: Reselling or marketplace mode for an online platform: the choice between cap-and-trade and carbon tax regulation

Optimizing Product Configuration Problems with Multisourcing Supplier Selections under Both Carbon Cap and Carbon Tax Regulations

Product configuration is a key enabling technology for mass customization production. Previous studies mainly focus on the solving technologies for obtaining a feasible configuration or optimal configuration but ignore environmental factors like CO2emissions, especially the environmental regulations from international organizations. In this article, we address product configuration optimization problems considering both carbon cap and carbon tax regulations. A two‐stage approach that combines both Particle Swarm Optimization (PSO) and a greedy algorithm is presented to solve the product configuration problems with carbon emission concerns. A case study of a configurable ranger‐drilling machine is illustrated to demonstrate the effectiveness of the presented approach. The impacts of carbon cap and carbon tax regulations on configuration results are compared. Further, the models are extended to analyze the effects of single‐sourcing and multisourcing on product configuration. The analysis shows that multisourcing in combination with carbon tax regulation can facilitate a manufacturer to provide more green and low‐carbon customized products for customers. Numerical experiments are conducted to validate the effectiveness of the model and the efficiency of the proposed solution method.

Greening, Pricing and Marketing Coordination for a Complex Three-Level Supply Chain Under the Carbon Tax in China

This paper examines a complex supply chain consisting of a raw material manufacturer, a consumer goods fabricator, a retailer and an end user. A sequential decision game model is constructed under carbon tax regulation, considering multiparty green technology innovation and green product marketing efforts in the supply chain. Using a backward-induction analysis process, the Nash equilibria of the game are obtained. With the help of numerical simulation, the sensitivity analysis of the key parameters affecting system performance is carried out. We find the following results. (i) Carbon tax regulation brings about a new cost burden for supply chain members in different ways, with the largest impact being on the profit of the raw material manufacturer. (ii) The marginal emission reduction effect of carbon tax regulation shows a declining trend. The cost of greening efforts will exceed the carbon tax rate as it continues to rise. (iii) Customer demand is significantly affected by the footprint and energy efficiency of products and is much more relevant for energy efficiency than for footprint in the production phase.

Reselling or marketplace mode for an online platform: the choice between cap-and-trade and carbon tax regulation

Reselling or marketplace mode for an online platform: the choice between cap-and-trade and carbon tax regulation