Journal
INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS
Volume 162, Issue -, Pages 160-173Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.ijpe.2015.01.020
Keywords
Carbon cap; Carbon trade; Production decisions; Remanufacturing
Categories
Funding
- National Natural Science Foundation, China [71102068, 71473085, 71431004, 71202052]
- Shanghai Pujiang Program [14PJC020]
- Program for New Century Excellent Talents in University, China [NCET-11-0637]
Ask authors/readers for more resources
We study a monopolist manufacturer who makes new products in the first period and makes new and remanufactured products simultaneously in the second period. The manufacturing and remanufacturing activities in the two-period planning horizon are limited by carbon cap and trade mechanism (CCT-mechanism), and the manufacturer has to determine the optimal production quantities for each period. With the consideration of CCT-mechanism, we propose two profit-maximization models for the independent demand market (ID-market) and the substitutable demand market (SD-market), respectively, and characterize the corresponding optimal production decisions. Based on the theoretical and numerical studies, we analyze the impacts of the CCT-mechanism and carbon related parameters. The results show that the CCT-mechanism has a great influence on firm's production decisions of manufacturing and remanufacturing. In specific, the carbon price is more effective in controlling productions and emissions compared with the carbon cap in both types of market. In the ID-market, the CCT-mechanism cannot induce the firm to choose the low-carbon remanufacturing technology, while in the SD-market, it may induce the firm to choose the low-carbon remanufacturing technology. (C) 2015 Elsevier B.V. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available