Production Decision Model for the Cement Industry in Pursuit of Carbon Neutrality: Analysis of the Impact of Carbon Tax and Carbon Credit Costs

Wen Hsien Tsai, Wei Hong Lin

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

One of the solutions to achieve the goal of net-zero emissions by 2050 is to try to reduce the carbon emission by using the carbon tax or carbon credit (carbon right). This paper examines the impact of carbon taxes and carbon credit costs on the cement industry, focusing on ESG indicators and corporate profits. Utilizing Activity-Based Costing and the Theory of Constraints, a production decision model is developed and analyzed using mathematical programming. The paper categorizes carbon tax models into continuous and discontinuous progressive tax rates, taking into account potential government policies like emission tax exemptions and carbon trading. It finds that reducing emission caps is more effective than increasing carbon tax rates in curbing emissions. These insights can assist governments in policy formulation and provide a reference framework for establishing carbon tax systems.

Original languageEnglish
Article number2251
JournalSustainability (Switzerland)
Volume16
Issue number6
DOIs
StatePublished - Mar 2024

Keywords

  • activity-based costing (ABC)
  • and trade
  • cap
  • carbon credit
  • carbon emissions
  • carbon tax
  • cement industry
  • circular economy
  • green economy
  • mathematical programming
  • theory of constraints

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