Equilibrium between Environmental and Economic Objectives: An Activity-Based Costing Approach Application for Carbon Emissions Management in the Aluminum Alloy Wheel Industry
In the face of the increasingly dire threat of global climate change, reducing carbon emissions has become an urgent priority for governments and corporations worldwide. The aluminum alloy wheel manufacturing industry bears an even heavier burden for emission mitigation due to its high production vo...
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| Format: | Article |
| Language: | English |
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MDPI AG
2024-03-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/17/6/1331 |
| _version_ | 1797241328831037440 |
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| author | Wen-Hsien Tsai Shuo-Chieh Chang Yuchun Teng |
| author_facet | Wen-Hsien Tsai Shuo-Chieh Chang Yuchun Teng |
| author_sort | Wen-Hsien Tsai |
| collection | DOAJ |
| description | In the face of the increasingly dire threat of global climate change, reducing carbon emissions has become an urgent priority for governments and corporations worldwide. The aluminum alloy wheel manufacturing industry bears an even heavier burden for emission mitigation due to its high production volume, complex processes, and proportionally higher carbon footprint. With impending carbon taxes and trading policies looming, the industry urgently needs to strike a balance between maximizing profits and minimizing carbon emissions. Leveraging real-world industry data, this research develops four green Activity-Based Costing (ABC) models and utilizes optimization software to compare the following scenarios: non-continuous carbon tax, carbon tax with trading, tiered tax with exemptions, and exemptions combined with trading. Results demonstrate that integrating carbon trading and targeted tax reductions can improve corporate financial positions without severely compromising environmental goals. Although identifying optimal balance points remains a highly complex process, this study equips enterprises and policymakers with quantitative tools to navigate fluctuating carbon regulatory environments. As national policies progress, more multifaceted dynamic carbon tax models will likely provide more profound insights for sustainable development. |
| first_indexed | 2024-04-24T18:21:35Z |
| format | Article |
| id | doaj.art-ad71ec36f05b4517878e63df5623e4cf |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-04-24T18:21:35Z |
| publishDate | 2024-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-ad71ec36f05b4517878e63df5623e4cf2024-03-27T13:35:28ZengMDPI AGEnergies1996-10732024-03-01176133110.3390/en17061331Equilibrium between Environmental and Economic Objectives: An Activity-Based Costing Approach Application for Carbon Emissions Management in the Aluminum Alloy Wheel IndustryWen-Hsien Tsai0Shuo-Chieh Chang1Yuchun Teng2Department of Business Administration, National Central University, 300, Jhongda Rd., Jhongli, Taoyuan 32001, TaiwanDepartment of Business Administration, National Central University, 300, Jhongda Rd., Jhongli, Taoyuan 32001, TaiwanDepartment of Business Administration, National Central University, 300, Jhongda Rd., Jhongli, Taoyuan 32001, TaiwanIn the face of the increasingly dire threat of global climate change, reducing carbon emissions has become an urgent priority for governments and corporations worldwide. The aluminum alloy wheel manufacturing industry bears an even heavier burden for emission mitigation due to its high production volume, complex processes, and proportionally higher carbon footprint. With impending carbon taxes and trading policies looming, the industry urgently needs to strike a balance between maximizing profits and minimizing carbon emissions. Leveraging real-world industry data, this research develops four green Activity-Based Costing (ABC) models and utilizes optimization software to compare the following scenarios: non-continuous carbon tax, carbon tax with trading, tiered tax with exemptions, and exemptions combined with trading. Results demonstrate that integrating carbon trading and targeted tax reductions can improve corporate financial positions without severely compromising environmental goals. Although identifying optimal balance points remains a highly complex process, this study equips enterprises and policymakers with quantitative tools to navigate fluctuating carbon regulatory environments. As national policies progress, more multifaceted dynamic carbon tax models will likely provide more profound insights for sustainable development.https://www.mdpi.com/1996-1073/17/6/1331activity-based costing (ABC)carbon taxcarbon rightcarbon pricingmathematical programming |
| spellingShingle | Wen-Hsien Tsai Shuo-Chieh Chang Yuchun Teng Equilibrium between Environmental and Economic Objectives: An Activity-Based Costing Approach Application for Carbon Emissions Management in the Aluminum Alloy Wheel Industry Energies activity-based costing (ABC) carbon tax carbon right carbon pricing mathematical programming |
| title | Equilibrium between Environmental and Economic Objectives: An Activity-Based Costing Approach Application for Carbon Emissions Management in the Aluminum Alloy Wheel Industry |
| title_full | Equilibrium between Environmental and Economic Objectives: An Activity-Based Costing Approach Application for Carbon Emissions Management in the Aluminum Alloy Wheel Industry |
| title_fullStr | Equilibrium between Environmental and Economic Objectives: An Activity-Based Costing Approach Application for Carbon Emissions Management in the Aluminum Alloy Wheel Industry |
| title_full_unstemmed | Equilibrium between Environmental and Economic Objectives: An Activity-Based Costing Approach Application for Carbon Emissions Management in the Aluminum Alloy Wheel Industry |
| title_short | Equilibrium between Environmental and Economic Objectives: An Activity-Based Costing Approach Application for Carbon Emissions Management in the Aluminum Alloy Wheel Industry |
| title_sort | equilibrium between environmental and economic objectives an activity based costing approach application for carbon emissions management in the aluminum alloy wheel industry |
| topic | activity-based costing (ABC) carbon tax carbon right carbon pricing mathematical programming |
| url | https://www.mdpi.com/1996-1073/17/6/1331 |
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