Sustainable Trade Credit and Replenishment Policies under the Cap-And-Trade and Carbon Tax Regulations

Abstract

Abstract:The paper considers the sustainable trade credit and inventory policies with demand related to credit period and the environmental sensitivity of consumers under the carbon cap-and-trade and carbon tax regulations. First, the decision models are constructed under three cases: without regulation, carbon cap-and-trade regulation, and carbon tax regulation. The optimal solutions of the retailer in the three cases are then discussed under the exogenous and endogenous credit periods. Finally, numerical analysis is conducted to obtain conclusions. The retailer shortens the trade credit period as the environmental sensitivity of the consumer is enhanced. The cap has no effects on the credit period decisions under the carbon cap-and-trade regulation. Carbon trade price and carbon tax have negative effects on the credit period. The retailer under carbon cap-and-trade regulation is more motivated to obey regulations than that under carbon tax regulation when carbon trade price equals carbon tax. Carbon regulations have better effects on carbon emission reduction than with exogenous credit term when the retailer has the power to decide with regards credit policies.

Measurement and Prediction: Coupling Coordination of Finance and Air Environment

“…Finance activities change the approaches and scales of investments into the energy consumptions [22], and the investments into the traditional energy fields inevitably lead to climate changes and increase the burden on the air environment protection. Finance changes energy consumptions by expanding industrial productions and by adjusting industrial structures [23,24], both of which clearly explain how finance affects the air environment [25,26].…”

Are Economic Distance and Geographic Remoteness Important in Sustainable Trade? Evidence from the Bilateral Trade between China and Kazakhstan

“…Focusing on the relationship between green logistics and international trade, they find that the logistics performance indexes (LPI) of exporting and importing countries are positively correlated with trade volumes, and that the LPIs of exporting countries positively affect the probability of trade. Similarly, Qin et al [9] examine sustainable trade credit and inventory policies when demand is related to the credit period and consumers' environmental sensitivity under carbon cap-and-trade and carbon tax regulations. They consider decision models that are constructed for three cases: without regulations, with carbon cap-and-trade regulations, and with carbon tax regulations.…”

The Capacitated Sustainable EOQ Models: Models Considering Tax Emissions

“…3, if > 0, Q is optimal by using equation (2). Conversely, if < 0, equation (12) is employed. Table 3 summarizes the results of the SEOQ model with tax.…”

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