Effect of Carbon-tax and Cap-and-trade mechanism on an inventory system with price-sensitive demand and preservation technology investment
In today's global decision-making context, government and organizations are highly concerned with environmental degradation caused by carbon emissions. Being environmental conscious, this paper investigates two different carbon policies viz., “Carbon tax and Cap-and-trade mechanism". It is...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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University of Belgrade
2020-01-01
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| Series: | Yugoslav Journal of Operations Research |
| Subjects: | |
| Online Access: | http://www.doiserbia.nb.rs/img/doi/0354-0243/2020/0354-02432000017K.pdf |
| _version_ | 1818919449502154752 |
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| author | Khanna Aditi Yadav Shikha Priyamvada |
| author_facet | Khanna Aditi Yadav Shikha Priyamvada |
| author_sort | Khanna Aditi |
| collection | DOAJ |
| description | In today's global decision-making context, government and organizations are highly concerned with environmental degradation caused by carbon emissions. Being environmental conscious, this paper investigates two different carbon policies viz., “Carbon tax and Cap-and-trade mechanism". It is observed that the main sources of carbon emissions are transhipments, inventory holding, inventory deterioration, and its preservation. Demand for the item is considered to be selling price dependent. Further, a comparison between a “carbon tax" and \cap-and-trade" policies has been illustrated. Some important managerial insights are obtained from numerical and sensitivity analyses. The present paper contributes to the existing literature of carbon control policies by developing optimal inventory models dealing with deteriorating items with preservation technology. Results suggest that firms should implement “Cap-and-trade" policy to increase their total profit, which at the same time, will help in reducing the carbon emissions. |
| first_indexed | 2024-12-20T01:06:02Z |
| format | Article |
| id | doaj.art-a96afb9f5d534ad5a9d6f470326ef15f |
| institution | Directory Open Access Journal |
| issn | 0354-0243 1820-743X |
| language | English |
| last_indexed | 2024-12-20T01:06:02Z |
| publishDate | 2020-01-01 |
| publisher | University of Belgrade |
| record_format | Article |
| series | Yugoslav Journal of Operations Research |
| spelling | doaj.art-a96afb9f5d534ad5a9d6f470326ef15f2022-12-21T19:58:52ZengUniversity of BelgradeYugoslav Journal of Operations Research0354-02431820-743X2020-01-0130336138010.2298/YJOR190315017K0354-02432000017KEffect of Carbon-tax and Cap-and-trade mechanism on an inventory system with price-sensitive demand and preservation technology investmentKhanna Aditi0Yadav Shikha1Priyamvada2Department of Operational Research, Faculty of Mathematical Sciences, New Academic Block, University of Delhi, Delhi, IndiaDepartment of Operational Research, Faculty of Mathematical Sciences, New Academic Block, University of Delhi, Delhi, IndiaDepartment of Operational Research, Faculty of Mathematical Sciences, New Academic Block, University of Delhi, Delhi, IndiaIn today's global decision-making context, government and organizations are highly concerned with environmental degradation caused by carbon emissions. Being environmental conscious, this paper investigates two different carbon policies viz., “Carbon tax and Cap-and-trade mechanism". It is observed that the main sources of carbon emissions are transhipments, inventory holding, inventory deterioration, and its preservation. Demand for the item is considered to be selling price dependent. Further, a comparison between a “carbon tax" and \cap-and-trade" policies has been illustrated. Some important managerial insights are obtained from numerical and sensitivity analyses. The present paper contributes to the existing literature of carbon control policies by developing optimal inventory models dealing with deteriorating items with preservation technology. Results suggest that firms should implement “Cap-and-trade" policy to increase their total profit, which at the same time, will help in reducing the carbon emissions.http://www.doiserbia.nb.rs/img/doi/0354-0243/2020/0354-02432000017K.pdfcarbon-taxcap-and-tradepreservation technologyselling-price dependent demanddeterioration |
| spellingShingle | Khanna Aditi Yadav Shikha Priyamvada Effect of Carbon-tax and Cap-and-trade mechanism on an inventory system with price-sensitive demand and preservation technology investment Yugoslav Journal of Operations Research carbon-tax cap-and-trade preservation technology selling-price dependent demand deterioration |
| title | Effect of Carbon-tax and Cap-and-trade mechanism on an inventory system with price-sensitive demand and preservation technology investment |
| title_full | Effect of Carbon-tax and Cap-and-trade mechanism on an inventory system with price-sensitive demand and preservation technology investment |
| title_fullStr | Effect of Carbon-tax and Cap-and-trade mechanism on an inventory system with price-sensitive demand and preservation technology investment |
| title_full_unstemmed | Effect of Carbon-tax and Cap-and-trade mechanism on an inventory system with price-sensitive demand and preservation technology investment |
| title_short | Effect of Carbon-tax and Cap-and-trade mechanism on an inventory system with price-sensitive demand and preservation technology investment |
| title_sort | effect of carbon tax and cap and trade mechanism on an inventory system with price sensitive demand and preservation technology investment |
| topic | carbon-tax cap-and-trade preservation technology selling-price dependent demand deterioration |
| url | http://www.doiserbia.nb.rs/img/doi/0354-0243/2020/0354-02432000017K.pdf |
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