2022
DOI: 10.3390/su142013445
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Robust Emission Reduction Strategies under Cap-and-Trade and Demand Uncertainty

Abstract: In this study, we consider robust emission reduction strategies for a monopolistic manufacturer facing demand uncertainty under governments’ cap-and-trade regulations. We model the manufacturer’s decision making and associated profits under four different emission reduction strategies: no mitigation measure, undertaking remanufacturing, improving the greening level, and both remanufacturing and improving the greening level. We find that the cap-and-trade regulation enhances the manufacturer’s motivation to be … Show more

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Cited by 3 publications
(2 citation statements)
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“…To effectively reduce carbon dioxide emissions, various carbon reduction policies have been introduced. The carbon cap-and-trade system, as an effective emission reduction approach, has been extensively analyzed by scholars in its impact on emission reduction through factors such as carbon trading prices [7][8][9][10][11] and carbon allowances [9]. As research progresses, scholars have integrated the carbon cap-and-trade mechanism with supply chain issues such as inventory management [12,13], supply chain financing [14,15], remanufacturing [8,16,17], channel structure [17][18][19], and competition [20].…”
Section: Literature Reviewmentioning
confidence: 99%
“…To effectively reduce carbon dioxide emissions, various carbon reduction policies have been introduced. The carbon cap-and-trade system, as an effective emission reduction approach, has been extensively analyzed by scholars in its impact on emission reduction through factors such as carbon trading prices [7][8][9][10][11] and carbon allowances [9]. As research progresses, scholars have integrated the carbon cap-and-trade mechanism with supply chain issues such as inventory management [12,13], supply chain financing [14,15], remanufacturing [8,16,17], channel structure [17][18][19], and competition [20].…”
Section: Literature Reviewmentioning
confidence: 99%
“…However, it assumes that the uncertain parameters fluctuate in an interval [26][27][28][29][30]. Since its emergence, robust optimization theories have been applied to many fields, such as group decision-making [31][32][33][34][35][36], portfolios [37][38][39][40][41], efficiency evaluation [42,43], supply chain management [44][45][46][47][48][49], etc. In emergency medical location decisions, some scholars have adopted the stochastic programming method for modeling [50][51][52][53][54].…”
Section: Introductionmentioning
confidence: 99%