An economical single-vendor single-buyer framework for carbon emission policies

Abbas Sepehriar and Reza Eslamipoor ()
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Abbas Sepehriar: Sharif University of Technology
Reza Eslamipoor: De Montfort University

Journal of Business Economics, 2024, vol. 94, issue 6, No 3, 927-945

Abstract: Abstract Previous research indicates that it is feasible to incorporate carbon considerations into production and inventory management by making informed decisions based on total costs and other relevant factors. In this article, the inventory model of single-vendor single-buyer with fixed demand is considered and carbon emission costs are added to the model according to the two policies of carbon tax and emission trading, and the model is also discussed through environmental concerns. The objective of this study is to establish an equilibrium between the costs associated with single-vendor single-buyer (SV-SB) and carbon emissions, utilizing carbon tax and carbon trading policies to regulate the quantity of carbon generated. The results show using the carbon trading policy is more economical although it is much more complicated in implementation than carbon tax policy.

Keywords: Single vendor single buyer; Economic production quantity; Carbon emission; Carbon tax; Carbon trading (search for similar items in EconPapers)
JEL-codes: F1 F3 O3 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s11573-024-01192-w

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