Carbon Asset Management Mode Selection for Capital-Constrained Enterprises

Yutong Lang, Xiaoyu Ji (), Yingtong Wang and Yingfu He
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Yutong Lang: School of Business, Renmin University of China, Beijing 100872, China
Xiaoyu Ji: School of Business, Renmin University of China, Beijing 100872, China
Yingtong Wang: School of Management Science and Engineering, Shandong University of Finance and Economics, Jinan 250014, China
Yingfu He: SINOPEC Exploration and Production Research Institute, Beijing 100083, China

Mathematics, 2024, vol. 12, issue 22, 1-29

Abstract: Carbon asset management has become an important way to reduce carbon costs. There are three main carbon asset management modes, including carbon quota compliance, carbon asset autonomous management, and custody. A key challenge faced by capital-constrained enterprises is how to scientifically select a carbon asset management mode based on actual needs. This paper considers the impacts of setup costs of carbon asset management departments, carbon asset appreciation, custody costs, and revenue sharing, maximizes the enterprises’ profits, develops optimization models for three modes, and provides the optimal low-carbon production strategies. This paper provides evidence for enterprises to choose optimal modes under different capital levels and carbon emissions by comparing modes. The conclusions are as follows. When setup costs are low, the carbon asset autonomous management mode is suggested for the optimal profit. With higher setup costs, either carbon asset compliance or custody mode is recommended. Under abundant capital, the carbon asset custody mode is suggested. Given a certain amount of capital and low setup costs, high-emission enterprises are encouraged to adopt the carbon asset autonomous management mode for a win–win of profits and carbon emissions. The carbon asset custody and compliance modes are suggested for medium-emission and low-emission enterprises, respectively.

Keywords: carbon asset; capital-constrained; carbon asset custody; carbon quota compliance (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2024
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