Manufacturer’s decision-making model under carbon emission permits repurchase strategy and capital constraints

Yuyan Wang, Lingxue Lv, Liang Shen and Rongyun Tang

International Journal of Production Research, 2024, vol. 62, issue 22, 8073-8091

Abstract: Considering that the manufacturer produces normal products (NPs) and low-carbon remanufactured products (LCRPs), this paper studied the production decisions under capital constraints and the Carbon Emission Permits Repurchase Strategy (CEPRS). The direct selling model and supply chain model are constructed respectively and optimal decisions are given. On this basis, the influences of CEPRS on optimal decisions and corporate performance are analyzed. This study shows that for the capital-constrained manufacturer, adopting the CEPRS is conducive to promoting the production of LCRPs. In the direct selling model, a higher end-of-period carbon price is not always beneficial for the environment. In the supply chain model, as the end-of-period carbon price increases, the low-cap manufacturer tends to lower the wholesale price of LCRPs, while the high-cap manufacturer tends to increase the wholesale price of NPs. A lower carbon cap is more effective in controlling carbon emissions, while a higher carbon cap generates a higher profit. Moreover, the manufacturer’s preference for operation mode is affected by the carbon cap. Specifically, the low-cap manufacturer prefers the direct selling model, while the high-cap manufacturer prefers the supply chain model.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00207543.2021.1934909 (text/html)
Access to full text is restricted to subscribers.

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:taf:tprsxx:v:62:y:2024:i:22:p:8073-8091

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TPRS20

DOI: 10.1080/00207543.2021.1934909

Access Statistics for this article

International Journal of Production Research is currently edited by Professor A. Dolgui

More articles in International Journal of Production Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().