We investigate how the retailer adjusts optimal ordering policy in the presence of cap-and-trade system and trade credit, and the corresponding changes of the retailer’s total costs and carbon footprint. Trade credit is one of the most used short-term financing tools. Our study shows that carbon emissions trading will shorten the ordering cycle for products that emit more carbon dioxide during ...

The previous chapter analysed mandatory blends and utilization targets as policy measures that can provide incentives for expanded biofuels production. GHG policies that create a carbon price either through an emissions trading system or directly by taxing GHG emissions also generate increased demand for biofuels. They do so by raising the price of burning the fossil fuels with which biofuels c...

Long-term outlooks are key tools for policy design in the energy sector. These outlooks should also include scenarios considering active policies that address the challenge of climate change. Consequently such a CO2 emission reduction scenario was analysed as a case study within the ACROPOLIS project. This paper presents a method to derive regional emission targets that correspond to an emissio...

In this paper, we present a mean field game to model the production behaviors of a very large number of producers, whose carbon emissions are regulated by government. Especially, an emission permits trading scheme is considered in our model, in which each enterprise can trade its own permits flexibly. By means of the mean field equilibrium, we obtain a Hamilton-Jacobi-Bellman (HJB) equation cou...

The impact of carbon emission trading (ETS) has been widely investigated. In contrast to the existing studies, this article explores for first time theoretical relationship between ETS and industrial green total factor productivity (IGTFP) tests it empirically. Furthermore, investigates mediating mechanisms possible regional heterogeneity influence on IGTFP. To end, a time-varying difference-in...

The estimation of the value of carbon emissions has become a major research and policy topic since the establishment of the Kyoto Protocol. The shadow price of CO2 provides information about the marginal abatement cost of this pollutant. It is an essential element in guiding environmental policy issues, since the CO2 shadow price can be used when fixing carbon tax rates, in environmental cost-b...

Abstract The emissions trading system allows organizations to transact emission permits fit their production practice. This paper develops a new nonparametric methodology for performance evaluation of (or decision-making units, DMUs) considering carbon permit trading. Explicit axioms are discussed, and technology is proposed. Models based on the established evaluating reduction potential DMUs. ...