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

Author

Listed:
  • Abbas Sepehriar

    (Sharif University of Technology)

  • Reza Eslamipoor

    (De Montfort University)

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.

Suggested Citation

  • Abbas Sepehriar & Reza Eslamipoor, 2024. "An economical single-vendor single-buyer framework for carbon emission policies," Journal of Business Economics, Springer, vol. 94(6), pages 927-945, August.
    • Handle: RePEc:spr:jbecon:v:94:y:2024:i:6:d:10.1007_s11573-024-01192-w
    DOI: 10.1007/s11573-024-01192-w
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    Citations

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    Cited by:

    1. Alok Yadav & Anish Sachdeva & Rajiv Kumar Garg & Karishma M. Qureshi & Bhavesh G. Mewada & Mohamed Rafik Noor Mohamed Qureshi & Mohamed Mansour, 2024. "Achieving Net-Zero in the Manufacturing Supply Chain through Carbon Capture and LCA: A Comprehensive Framework with BWM-Fuzzy DEMATEL," Sustainability, MDPI, vol. 16(16), pages 1-19, August.

    More about this item

    Keywords

    Single vendor single buyer; Economic production quantity; Carbon emission; Carbon tax; Carbon trading;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F3 - International Economics - - International Finance
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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