 Emission permit banking, pollution abatement and production–inventory control of the firmShoude Li International Journal of Production Economics, 2013, vol. 146, issue 2, 679-685 Abstract: In this paper, we present a dynamic model modified with emission permit banking and pollution abatement, and investigate the effect of emission permit banking and pollution abatement on the production–inventory strategy of the firm. After introducing emission permit banking and pollution abatement, the cost function consists of the inventory holding and production costs, the cost of investment in abatement capital goods and the emission procurement/selling cost. Furthermore, the inventory holding costs are linear, production costs are non-decreasing and convex functions of the production level, and the costs of investment in abatement capital goods are increasing and convex functions of the investment level. We compare the optimal production–inventory strategy before emission permit banking and pollution abatement and thereafter. The mathematical investigation is based on the Arrow–Karlin model. Keywords: Emission permit banking; Production–inventory; Arrow–Karlin model (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:146:y:2013:i:2:p:679-685 DOI: 10.1016/j.ijpe.2013.08.023 Access Statistics for this article International Journal of Production Economics is currently edited by Stefan Minner More articles in International Journal of Production Economics from Elsevier |
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