Carbon taxes and carbon right costs analysis for the tire industry

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Abstract

As enterprises are the major perpetrators of global climate change, concerns about global warming, climate change, and global greenhouse gas emissions continue to attract attention, and have become international concerns. The tire industry, which is a high-pollution, high-carbon emission industry, is facing pressure to reduce its carbon emissions. Thus, carbon prices and carbon trading have become issues of global importance. In order to solve this environmental problem, the purpose of this paper is to combine mathematical programming, Theory of Constraints (TOC), and Activity-Based Costing (ABC) to formulate the green production decision model with carbon taxes and carbon right costs, in order to achieve the optimal product mix decision under various constraints. This study proposes three different scenario models with carbon taxes and carbon right used to evaluate the effect on profit of changes in carbon tax rates.

Original languageEnglish
Article number2121
JournalEnergies
Volume11
Issue number8
DOIs
StatePublished - 2018

Keywords

  • Activity-Based Costing (ABC)
  • Carbon emissions
  • Carbon trading
  • Mathematical programming
  • Tire industry

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