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Open Access
Article
Publication date: 30 September 2020

Ye Duan, Zenglin Han and Hailin Mu

There are certain differences in the production products of enterprises. What are the impacts of product differentiation on the iron and steel industry? Based on the macro…

1026

Abstract

Purpose

There are certain differences in the production products of enterprises. What are the impacts of product differentiation on the iron and steel industry? Based on the macro background of CO2 emission reduction, this paper aims to analyze the economic benefits and environmental changes of the iron and steel industry under the dual influence of CO2 emission reduction policy and product differentiation policy.

Design/methodology/approach

Taking the basic data of iron and steel industry in six regions of China as an example, this paper constructed an extended two-stage dynamic game model to analyze the impact of product differentiation and carbon tax policy on the production, economic indicators and CO2 emission levels for the overall industry and regional enterprises.

Findings

As the CO2 emission reduction target increased, the unit carbon tax and total tax increased, whereas the macro-environmental losses, social welfare, consumer surplus and outputs decrease. Emission reduction pressures and other economic indicators showed obvious regional differences. Differentiated products promoted various indicators of enterprises and industries; higher degrees of product differentiation resulted in greater promoting effects on economic indicators.

Originality/value

This paper constructed multiple emission reduction and production backgrounds, and discusses the impact of the comprehensive implementation of these policies, which has been practically absent in previous studies. The results of this study are consistent with the current industrial policy for stable production and environmental protection, and also provides a reference for the formulation of detailed policies in the future.

Details

International Journal of Climate Change Strategies and Management, vol. 12 no. 5
Type: Research Article
ISSN: 1756-8692

Keywords

Article
Publication date: 28 June 2019

Qiang Hou and Jiayi Sun

The authors consider a dynamic emission-reduction technology investment decision-making problem for an emission-dependent dyadic supply chain consists of a manufacturer…

Abstract

Purpose

The authors consider a dynamic emission-reduction technology investment decision-making problem for an emission-dependent dyadic supply chain consists of a manufacturer and a retailer under subsidy policy for carbon emission reduction. The consumers are assumed to prefer to low-carbon products and formulate a supply chain optimal control problem.

Design/methodology/approach

The authors adopt differential game to analyze investment strategies of cost subsidy coefficient with respect to vertical incentive of a manufacturer and a retailer. A comparison analysis under four different decision-making situations, including decentralized decision-making, centralized decision-making, maximizing social welfare, is obtained.

Findings

The results show that the economic benefit and environmental pressure have a win–win performance in centralized decision-making. In four different game models, equilibrium strategies, profits and social welfare show changing diversity and have a consistent development trend as time goes on.

Research limitations/implications

The authors estimate the demand function is a linear function in this paper. According to the consumers’ preference to low-carbon products, consumer’s awareness meets the law of diminishing marginal utility like advertising goodwill accumulation. The carbon-sensitive coefficient might be a quadratic expression, which will complicate the problem and be consistent with reality.

Practical implications

It captures that there is a necessity to strengthen cooperation and exchange of carbon emission technology among the enterprises by simulation of different decision-makings when government granted cost subsidy.

Social implications

The results provide significant guidelines for the supply chain to make decision-makings of emission-reduction technology investment and relevant government departments to determine emission subsidies costs.

Originality/value

An endogenous subsidies coefficient is produced by the social welfare function. Distinguished from previous study, it also considered the influences of carbon emission trade policy and consumer preference.

Details

Kybernetes, vol. 49 no. 2
Type: Research Article
ISSN: 0368-492X

Keywords

Book part
Publication date: 4 December 2014

Richard Smokers, Lóránt Tavasszy, Ming Chen and Egbert Guis

Logistics as a sector has a key role to play in reducing greenhouse gas emissions and in reducing the dependency of our economy on non-renewable energy sources. The…

Abstract

Purpose

Logistics as a sector has a key role to play in reducing greenhouse gas emissions and in reducing the dependency of our economy on non-renewable energy sources. The challenges are enormous: by 2050 the sector needs to have achieved about 50% lower fossil fuel use and CO2 emissions. If freight volumes grow according to expectations, this requires over 70% less CO2 emissions per unit of transport. This chapter explores the options for reducing CO2 emissions from freight transport and their reduction potential, and analyses whether the logistic sector would be likely to achieve the required reduction based on its intrinsic drive for cost reduction alone.

Methodology/approach

In this conceptual chapter we identify options for sustainable logistics and discuss the necessary economic conditions for their deployment using a simple cost/benefit analysis framework. We distinguish between three regimes of measures for improving sustainability: efficiency measures with net negative costs (‘low hanging fruit’), cost-neutral measures and measures that allow to reach societal targets at net positive costs. Policy measures are discussed that may help the sector to implement cost-effective greenhouse gas abatement measures that, in the absence of incentives, go beyond the point of lowest cost from an end user perspective.

Social implications

Sufficient energy saving options are available to be implemented in the short to medium term, which can lead to operational cost savings with a short return on investments period. The potential contribution of the logistics sector to sustainability is larger, however, as logistics can make large steps ahead in sustainability with cost neutrality or with small cost increases. The full potential has been underrated by many stakeholders and should be explored further.

Originality/value of the chapter

Efficiency measures are a necessary but insufficient condition for sustainable logistics. The industry will need to go beyond cost saving measures, or even cost-neutral measures to reach the long-term energy saving and emission reduction targets for freight transport. We provide a systematic presentation of these options and discuss the additional necessary measures.

Details

Sustainable Logistics
Type: Book
ISBN: 978-1-78441-062-9

Keywords

Article
Publication date: 5 May 2022

Jiayuan Han, Lingcheng Kong, Wenbin Wang and Jiqing Xie

A public emission reduction project offers saleable carbon credits to encourage individual residents to participate in activities with low carbon emissions: if the…

Abstract

Purpose

A public emission reduction project offers saleable carbon credits to encourage individual residents to participate in activities with low carbon emissions: if the residents participate, they will earn carbon credits that can be sold to polluting firms for carbon offsetting. This study explores the economic and environmental implications of these projects.

Design/methodology/approach

The authors develop a multiperiod model to incorporate the decisions of individual residents and a polluting firm. The model captures residents' difference in estimating the price of carbon credits: A proportion of residents are naive residents who shortsightedly take the previous market price of carbon credits as the basis of their decision-making.

Findings

A public emission reduction project can improve the cost-efficiency of carbon reduction, increase both the profit of the polluting firm and consumer surplus, but may hurt the welfare of the participating residents. Reducing transaction costs of carbon credits may cause a greater loss to participating residents. As the ratio of naive residents decreases, the overall welfare of participating residents increases and the number of participating residents decreases.

Practical implications

To encourage more residents to reduce carbon emissions, the project should be promoted to new areas (e.g. rural areas) where there are more naive residents. Although reducing transaction costs is an effective way to increase the economic viability of the project, the government should pay attention to protecting the welfare of residents, and educating residents is an effective way to improve their overall welfare.

Originality/value

This paper is the first to reveal the economic and environmental implications of public emission reduction projects.

Details

Industrial Management & Data Systems, vol. 122 no. 5
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 2 November 2021

Jun Wang, Song Yao, Xin Wang, Pengwen Hou and Qian Zhang

The purpose of this paper is to investigate the optimal operational strategies in a green platform supply chain and provide suggestions on the selection of sales and…

159

Abstract

Purpose

The purpose of this paper is to investigate the optimal operational strategies in a green platform supply chain and provide suggestions on the selection of sales and financing modes for the capital-constrained manufacturer.

Design/methodology/approach

This study combines different sales channels with financing modes and investigates three sales-financing modes, i.e. traditional sales-prepayment financing (TSPF), traditional sales-bank financing (TSBF) and online sales e-retailer financing (OSEF). By establishing and comparing Stackelberg game models of these sales-financing modes from the perspectives of economy, environment and social welfare, the optimal strategies of emission reduction, financing, pricing and service improvement are obtained.

Findings

The results suggest that as the commission rate increases to a certain level, a threshold of the cost coefficient of emission reduction can be found such that the manufacturer should choose OSEF below this threshold and TSBF above this threshold. OSEF is Pareto optimal when this cost coefficient is low, and this mode can lead to the highest social welfare when the platform loan interest rate is relatively low. The Pareto areas in TSBF and OSEF enlarge as the default coefficient decreases.

Practical implications

These results can provide operational insights on how to select sales channels and financing modes when manufacturer faces financial constraints in emission reduction.

Originality/value

This paper combines different sales and financing modes to study their comprehensive influence on the decision-makings of chain members and the resulting performance of economy, environment and social welfare.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Open Access
Article
Publication date: 5 August 2021

Ye Duan, Zenglin Han, Hao Zhang and Hongye Wang

Environmental problems such as CO2 (Carbon Dioxide) emissions have seriously affected the development of the steel industry, which has urged the industry to adopt a more…

Abstract

Purpose

Environmental problems such as CO2 (Carbon Dioxide) emissions have seriously affected the development of the steel industry, which has urged the industry to adopt a more effective emission reduction policy. This paper aims to analyze the impact of various CO2 emission reduction policies combinations on the economic benefits and environmental changes of the steel industry and to determine the scope of application.

Design/methodology/approach

To compare the impact and applicable implementation conditions, a production decision game model that incorporates these two policies has been constructed. Short-, medium- and long-term constraints are set on the emission reduction indicators and the indicators’ changes under various scenarios are compared.

Findings

In the case of a single emission reduction policy, the carbon trading (CT) mechanism is better than the carbon tax mechanism. The mixed carbon trading mechanism is superior to the mixed carbon tax mechanism in terms of total output and subsidies, but worse in terms of overall social welfare, producer surplus and macro losses.

Originality/value

This paper constructs multiple emission reduction and production backgrounds and discusses the impact of the comprehensive implementation of these policies, which is practically absent in previous studies. It is in line with the current industrial policy for stable production and environmental protection and also provides a reference for the formulation of detailed policies in the future.

Details

International Journal of Climate Change Strategies and Management, vol. 13 no. 3
Type: Research Article
ISSN: 1756-8692

Keywords

Article
Publication date: 6 September 2021

Na Wang, Yulin Zhang and Jing Li

Outsourcing remanufacturing is a major form of remanufacturing, and emission reduction is an important part of a manufacturer's production. This paper aims to investigate…

Abstract

Purpose

Outsourcing remanufacturing is a major form of remanufacturing, and emission reduction is an important part of a manufacturer's production. This paper aims to investigate carbon emission reduction strategies in a closed-loop supply chain (CLSC) with outsourcing remanufacturing and design a contract to coordinate the CLSC.

Design/methodology/approach

The authors establish two-period game models between an original equipment manufacturer (OEM) and third-party remanufacturer (TPR) in different scenarios, including decentralized decision, centralized decision and coordinated decision. Furthermore, the authors study the optimal decisions by maximizing the profit model. The authors also investigate the impact of a carbon tax and emission reduction on the optimal decisions through comparative analysis.

Findings

Emission reduction increases the quantity of new products and the OEM's profit. However, emission reduction decreases the outsourcing fee, which is not conducive to remanufacturing; thus, the TPR's profit does not necessarily increase. Compared with a decentralized scenario, the output of remanufactured products and the total profit increase. When the acceptance level of remanufactured products is high enough or when emissions from remanufacturing are low enough, the total carbon emissions are reduced in the centralized scenario. For the coordination of the CLSC, the OEM needs to increase the outsourcing fee and the TPR needs to share part of the emission reduction costs.

Research limitations/implications

The TPR can choose three different remanufacturing strategies, namely, no remanufacturing, partial remanufacturing or full remanufacturing. For the majority of firms, it is difficult to remanufacture all used products. Therefore, the analysis is based only on partial remanufacturing.

Practical implications

The results provide insights for remanufacturing and emission reduction decisions, as well as a decision basis for the cooperation between the OEM and TPR.

Originality/value

The authors combine the OEM's carbon emission reduction with outsourcing remanufacturing, and investigate the impact of technological spillover on the TPR's profit.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 7 November 2019

Sani Damamisau Mohammed

Carbon emissions from gas flaring in the Nigerian oil and gas industry are both a national and international problem. Nigerian government policies to eliminate the problem…

Abstract

Purpose

Carbon emissions from gas flaring in the Nigerian oil and gas industry are both a national and international problem. Nigerian government policies to eliminate the problem 1960-2016 yielded little or no results. The Kyoto Protocol (KP) provides Clean Development Mechanism (CDM) as an international market-based mechanism to reducing global carbon emissions. Therefore, the purpose of this paper is to analytically highlight the potentials of CDM in eliminating carbon emissions in the Nigerian oil and gas industry.

Design/methodology/approach

This paper reviewed the historical background of Kyoto protocol, Nigerian Government policies to eliminating gas flaring in its oil and gas industry 1960-2016 and CDM projects in the industry. The effectiveness of the policies and CDM projects towards ending this problem were descriptively analysed.

Findings

Government policies towards eliminating gas flaring with its attendant carbon emissions appeared not to be yielding the desired results. However, projects registered under CDM in the industry looks effective in ending the problem.

Research limitations/implications

Therefore, the success recorded by CDM projects has the policy implication of encouraging Nigeria to engage on establishing more CDM projects that ostensibly proved effective in reducing CO2 emissions through gas flaring reductions in its oil and gas industry. Apparent effectiveness of studied CDM should provide a way forward for the country in eliminating gas flaring in its oil and gas industry which is also a global menace. Nigeria could achieve this by providing all needed facilitation to realising more CDM investments.

Practical implications

CDM as a policy has proved effective in eliminating gas flaring in the Nigerian oil and gas industry. The government should adopt this international policy to achieve more gas flaring reductions.

Social implications

Social problems of respiratory diseases, water pollution and food shortage among others due to gas flaring are persisting in oil and gas producing areas as government policies failed to end the problem. CDM projects in the industry have proved effective in eliminating the problem, thus improving the social welfare of the people and ensuring sustainable development.

Originality/value

The paper analysed the effectiveness of Nigerian Government policies and an international market-based mechanism towards ending gas flaring in its oil and gas industry.

Details

Sustainability Accounting, Management and Policy Journal, vol. 11 no. 3
Type: Research Article
ISSN: 2040-8021

Keywords

Article
Publication date: 17 April 2009

Stephen Howes

The purpose of this paper is to identify the (three) critical issues that will need to be addressed in a post‐2012 (post‐Kyoto) global agreement on climate change, sets…

Abstract

Purpose

The purpose of this paper is to identify the (three) critical issues that will need to be addressed in a post‐2012 (post‐Kyoto) global agreement on climate change, sets out the options and difficulties in relation to them, and outlines a way forward on each.

Design/methodology/approach

The paper assesses proposals for national and international mitigation already put forward both by negotiating countries and by academics.

Findings

Global mitigation efforts have so far achieved little and negotiations are currently deadlocked. This lack of progress has led to an proliferation of alternative policy proposals for an international agreement, but only those proposals which build on international agreements to date have at the current time any reasonable prospect of guiding global mitigation effort post‐2012. There are three main issues that will need to be addressed within that framework: emission reduction targets for developed countries; the nature and extent of actions to limit emissions growth in developing countries; and the funding of emission reduction efforts in developing countries. Using a number of explicit assumptions, the paper identifies likely ranges for emission reduction targets for developed countries and emission growth limits for developing countries. The best (worst) case involves developed countries as a group reducing 2020 emissions by 20 per cent (10 per cent) over 1990 levels, and developing countries limiting annual average emissions growth between 2012 and 2020 to 1.5 per cent (3.5 per cent) a year. This is estimated to give global emissions in 2020 in the range of 47‐53 Gt CO2‐e. The bottom end of this range is consistent with the long‐term goal of stabilizing the concentration of greenhouse gases in the range of 550 CO2‐e ppm, provided there is rapid adjustment post‐2020. Crucial to reaching a deal at the ambitious end of this range will be reform of the clean development mechanism, and a commitment by developed countries to large public funding in support of developing country mitigation.

Originality/value

The paper accepts the current negotiating framework, and provides a systematic and quantified treatment of the critical issues which arise within it.

Details

Indian Growth and Development Review, vol. 2 no. 1
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 27 June 2008

Loreta Stankeviciute and Patrick Criqui

The purpose of this paper is to quantify the possible interactions among the three European objectives in the horizon of 2020: the reduction of 20 per cent of greenhouse…

2243

Abstract

Purpose

The purpose of this paper is to quantify the possible interactions among the three European objectives in the horizon of 2020: the reduction of 20 per cent of greenhouse gas emissions (GHG); the saving of 20 per cent of the European energy consumption; and a share of 20 per cent of renewable energies in the overall energy consumption. Particular focus is, however, placed on the influence of the CO2 emission reduction targets and on their consequences on the carbon price in 2020.

Design/methodology/approach

In order to explore the interactions among the three European objectives and their induced effects, a number of scenarios are tested within a combination of two modeling tools: the POLES world energy model and ASPEN, an auxiliary model dedicated to the analysis of quota trading systems. With reasonable assumptions for the burden sharing among the member states, the energy efficiency objectives and the renewable energy targets are achieved using national quota systems in each European country (white and green certificate systems and their implicit prices), while the CO2 emission reduction is carried out within the European Emissions Trading Scheme (ETS) in line with the objective of 20 per cent emission reduction.

Findings

The paper shows, in particular, that the two quota policies (white certificates and green certificates) decrease significantly the European marginal emission reduction cost and consequently, the compliance costs for ETS participants. The high‐renewable target compliance cost could be reduced significantly if carbon price signal and energy saving policies are in place. The paper also shows that the sole carbon price signal has a limited influence for stimulating renewable energies and energy savings and thus concludes on the need for specific policies targeting these two areas.

Originality/value

This paper is a first attempt to comprehensively deal with the economic fundamentals of the 3D regulatory system proposed by the Commission for Energy and Climate and is of value in proposing a comprehensive approach of the economics of the “20/20/20” European policy.

Details

International Journal of Energy Sector Management, vol. 2 no. 2
Type: Research Article
ISSN: 1750-6220

Keywords

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