Abstract
Carbon emission regulation policies have emerged as mechanisms to control firms' carbon emissions. To meet regulatory requirements, firms can make changes in their production planning decisions or invest in green technologies. In this study, we analyze a retailer's joint decisions on inventory replenishment and carbon emission reduction investment under three carbon emission regulation policies. Particularly, we extend the economic order quantity model to consider carbon emissions reduction investment availability under carbon cap, tax and cap-and-trade policies. We analytically show that carbon emission reduction investment opportunities, additional to reducing emissions as per regulations, further reduce carbon emissions while reducing costs. We also provide an analytical comparison between various investment opportunities and compare different carbon emission regulation policies in terms of costs and emissions. We document the results of a numerical study to further illustrate the effects of investment availability and regulation parameters. © 2013 Taylor & Francis.
Recommended Citation
A. Toptal et al., "Joint Decisions on Inventory Replenishment and Emission Reduction Investment under Different Emission Regulations," International Journal of Production Research, vol. 52, no. 1, pp. 243 - 269, Taylor and Francis Group; Taylor and Francis, Jan 2014.
The definitive version is available at https://doi.org/10.1080/00207543.2013.836615
Department(s)
Engineering Management and Systems Engineering
Publication Status
Full Access
Keywords and Phrases
Carbon emissions; Economic order quantity; Green technology; Investment
International Standard Serial Number (ISSN)
1366-588X; 0020-7543
Document Type
Article - Journal
Document Version
Citation
File Type
text
Language(s)
English
Rights
© 2024 Taylor and Francis Group; Taylor and Francis, All rights reserved.
Publication Date
01 Jan 2014
