Coping Decisions of Production Enterprises under Low-Carbon Economy

Yanhong Yuan, Yaru Zhang, Lei Wang and Li Wang
Additional contact information
Yanhong Yuan: College of Economics and Management, Taiyuan University of Technology, Jinzhong 030600, China
Yaru Zhang: College of Economics and Management, Taiyuan University of Technology, Jinzhong 030600, China
Lei Wang: College of Economics and Management, Taiyuan University of Technology, Jinzhong 030600, China
Li Wang: School of Science, Shenyang Aerospace University, Shenyang 110136, China

Sustainability, 2022, vol. 14, issue 15, 1-21

Abstract: It aims to study the production and emission reduction decisions of production enterprises under carbon constraints. In the case of carbon constraints in production, manufacturers have four strategic choices: production within the carbon quota, adopting emission reduction technologies, purchasing carbon emission rights, and using emission reduction technologies and purchasing carbon emission rights. Based on the income model of production enterprises under four different strategies, first, under the condition of maximizing the interests of production enterprises, the optimal profit, optimal production, optimal total carbon emission, and optimal emission reduction rate under different carbon constraints are determined, and summarize its laws. Afterward, in order to further optimize corporate profits, the impact of changes in the carbon reduction scale cost and consumers’ low-carbon preference was studied. Several important conclusions are shown as follows. First, the stricter the carbon constraint policy, the greater the optimal emission reduction rate of enterprises. Second, the adoption of emission reduction technology can effectively reduce the impact of carbon constraint on output. Third, the optimal strategy is to both reduce emissions and purchase carbon emission rights, which can realize environmental economic dividends. Fourth, the lower the cost factor of the carbon reduction scale and the higher the low-carbon preference of consumers, the easier it is for firms to achieve carbon sufficiency in their production.

Keywords: carbon constraint; carbon reduction technology; carbon emission rights; consumers’ low-carbon preference (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/15/9593/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/15/9593/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:15:p:9593-:d:880340

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().