Optimal Decisions for Two Risk-Averse Competitive Manufacturers under the Cap-and-Trade Policy and Uncertain Demand

Sun, Hua; Yang, Jie; Zhong, Yang

doi:10.3390/ijerph17031010

Cited by 7 publications

(4 citation statements)

References 50 publications

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“…These uncertainties also create the risk of irreversible socio‐economic and environmental disruptions on a global scale (Ermolieva et al, 2015). Therefore, it is crucial to adopt appropriate approaches that account for uncertainty to enhance the effectiveness of the EU's emission trading policies (Ermolieva et al, 2015; Sun et al, 2020).…”

Section: Barriers To Carbon Emission Tradingmentioning

confidence: 99%

Carbon trading practices adoption for sustainable construction: A study of the barriers in a developing country

Oke,

Oyediran,

Koriko

et al. 2023

Sustainable Development

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The construction industry provides infrastructure and structures to society by consuming a substantial quantity of non‐renewable energy, which results in significant carbon dioxide emissions. Carbon dioxide (CO2) could pose a serious danger to the economy of any nation if proper measures are not put in place with the country being one of the leading producers and end‐users of fossil fuels in the world. This article seeks to evaluate the barriers to the adoption of carbon trading practices (CTP) in the construction sector with the view to ensuring low carbon usage. The article adopted quantitative approach with data obtained using questionnaire. Mean Item Score (MIS), standard deviation (SD), factor analysis and Kruskal–Wallis test was carried out in relation to the research questions. The study showed that the most significant barriers to the adoption of carbon trading are difficulties in obtaining finance, attitude to environmental sustainability and climate change, lack of cost‐effective abatement options and methods, lack of awareness of carbon market opportunties and risk in changes in the rules governing participation and credit among others. This study provides valuable insights into barriers of CTP in construction and will help stakeholders concerned with building energy performance to develop a functional framework for energy analysis in buildings to prepare possible risk analysis from the onset of project design spanning through completion.

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Section: Barriers To Carbon Emission Tradingmentioning

confidence: 99%

Carbon trading practices adoption for sustainable construction: A study of the barriers in a developing country

Oke,

Oyediran,

Koriko

et al. 2023

Sustainable Development

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show abstract

“…They used product collection based on cap-and-trade regulation in a closed-loop supply chain in decentralized and centralized decision models. Sun et al [40] discussed the carbon emission reduction and price policies of two risk-averse competitive manufacturers under the cap-and-trade policy in the presence of uncertain market demand. Lee and Wang [25] estimated the marginal abatement cost of undesirable outputs concerning the Nash equilibrium on the stochastic semi-nonparametric envelopment of data (StoNED) in an imperfectly competitive market under a cap-and-trade policy.…”

Section: 2mentioning

confidence: 99%

Waste emission reduction decision-making for industrial symbiosis chains in a competitive market considering environmental regulations

Cao

Xiao

Zhou

2023

JIMO

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<p style='text-indent:20px;'>We develop a perfect competitive upstream and downstream manufacturers model in an industrial symbiosis chain that produces partially differentiated products and generates pollution as a byproduct. We investigate the waste emission reduction decision-making of the industrial symbiosis chain in a competitive market while considering environmental regulations imposed by policy-makers or the government in the form of waste emission taxes and subsidies for waste usage. We prove that environmental regulation and market competition positively affect manufacturers' strategies to implement industrial symbiosis. In addition, we discover that implementing industrial symbiosis requires government leadership, while the market mainly plays a supporting role. Similarly, we show that the degree of competition plays a critical role in determining the economic consequences of environmental regulation. Our results suggest that the government or policy-makers should consider market competition when making environmental regulations. Through our simulations, when the upstream and downstream market sizes are the same, we discover that regardless of the market size, as the market competition becomes fiercer, the profit of the centralized model always dominates that of the other models. At the same time, a waste emission contract can be the technique to improve the performance of the decentralized industrial symbiosis chain. We further find that the market size does not affect the manufacturers' final strategies but only has a specific impact on the value.</p>

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“…Wang et al [ 42 ] analyzed the impact of decision makers’ risk avoidance characteristics on the performance of low-carbon supply chain system by comparing the decision-making process under the risk-neutral and risk-avoidance scenarios. Further, Bai et al [ 14 ] and Sun et al [ 43 ] studied the influence of a risk-aversion coefficient on carbon emission reduction rate and price considering horizontal competition among manufacturers. However, they did not focus on supply chain coordination.…”

Section: Literature Reviewmentioning

confidence: 99%

Coordination Decisions for a Low-Carbon Supply Chain Considering Risk Aversion under Carbon Quota Policy

Zou

Qin

Long

2022

IJERPH

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To mitigate climate change, the governments of various countries have formulated and implemented corresponding low-carbon emission reduction policies. Meanwhile, consumers’ awareness of the necessity of environmental protection is gradually improving, and more consumers pay attention to the environmental attributes of products, which all encourages enterprises to have great power to implement low carbon technology. As rational decision makers, members tend to show the characteristics of risk aversion. How to meet the needs of consumers and reduce their own risks has become a key point of low-carbon supply chain management. Considering carbon quota policy, in this paper, the optimal pricing decision-making process of a supply chain system is discussed under risk-neutral and risk-avoidance decision-making scenarios by game theory, and a cost-sharing contract is used to coordinate the decision-making process of a supply chain system. By analyzing the influence of the risk aversion coefficient on the optimal strategies of participants, we find that when the manufacturer has the risk aversion characteristic, the risk aversion coefficient will further reduce the carbon emission rate, the wholesale price of the product and the manufacturer’s profit but increase the product order quantity and the retailer’s profit. In addition, if consumers have a high preference for low-carbon products, the manufacturer’s risk-aversion coefficient will lead to a lower selling price than in the centralized decision-making situation, and the profit of the supply chain system will also be further reduced. When the cost-sharing contract is adopted for coordination, the Pareto improvement of supply chain members’ profits can be achieved when the parameters of the cost-sharing contract are appropriate, regardless of the manufacturer’s risk-neutral decision or risk-aversion decision.

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Optimal Decisions for Two Risk-Averse Competitive Manufacturers under the Cap-and-Trade Policy and Uncertain Demand

Cited by 7 publications

References 50 publications

Carbon trading practices adoption for sustainable construction: A study of the barriers in a developing country

Carbon trading practices adoption for sustainable construction: A study of the barriers in a developing country

Waste emission reduction decision-making for industrial symbiosis chains in a competitive market considering environmental regulations

Coordination Decisions for a Low-Carbon Supply Chain Considering Risk Aversion under Carbon Quota Policy

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