Carbon tax regulation and consumers' low-carbon preference act as incentives for firms to abate emissions. Manufacturers can improve product sustainability and retailers can strengthen the promotion of low-carbon products as part of such abatement. Current incomplete rationality also affects product sustainability and low-carbon promotion level. In this context, we consider a supply chain with ...

Economists have almost uniformly treated anthropogenic greenhouse gas emissions as a market failure, requiring government measures to counterbalance the negative externality. William Nordhaus, a pioneer and leader in the field, uses the latest calibration of his DICE model to determine the “optimal” time-indexed carbon tax, starting at $42 per ton (of carbon, not ton of CO2) in 2015 and rising ...

In this paper, we study the impact of carbon tax on carbon emission and retail price in a two-echelon supply chain consisting of a manufacturer and a retailer. Specifically, by adopting two types of contracts, i.e., the modified wholesale price (MW) and the modified cost-sharing contract (MS), supply chain coordination is achieved, which promotes the supply chain efficiency. Our study shows tha...

We design a global refunding scheme as a new international approach to address climate change. A global refunding system allows each country to set its carbon emission tax, while aggregate tax revenues are partially refunded to member countries in proportion to the relative emission reductions they achieve within a given period. In a simple model we show that a suitably designed global refundin...

Global climate change has encouraged international and regional adoption of pollution taxes and carbon emission reduction policies. Europe has taken the leadership in environmental regulations by introducing the European Union Emissions Trading System (EU-ETS) in 2005 and by developing and promoting a set of policies destined to lower carbon emissions from transport sectors. These environmental...

In a world with the need of climate protection through emission reduction, China’s domestic mitigation will be put on the national agenda. The large-scale deployment of innovative technologies induced by climate policies is a key determinant for reducing emissions in an effective and efficient manner. A distinguishing feature of the Chinese energy sector (especially electricity generation), is ...

In this study we investigate the economic effects of carbon taxes on the Russian economy. The main findings of this study are the following: an introduction of carbon taxes compensated by an increase in lump-sum subsidies may weak the Russian economy through higher energy costs. Moreover, such an environmental tax reform could induce Dutch disease in Russia because of increases in the domestic ...

W political leaders in the European Union, Canada, Australia, Japan, and the U.S. Congress move toward cap-and-trade systems as their preferred approach for achieving meaningful reductions in emissions of CO2 and other greenhouse gases, there is a lively debate among economists, many of whom have been critical of the cap-and-trade approach in the climate context and have endorsed carbon taxes i...

Current economic instruments aimed at climate change mitigation focus mainly on CO(2) emissions, but efficient climate mitigation needs to focus on other greenhouse gases as well as CO(2). This study investigates the distributional effects of climate change taxes on households belonging to different income and lifestyle groups; and it compares the effects of a CO(2) tax with a multiple GHG tax ...