The choice of green manufacturing modes under carbon tax and carbon quota

Jianhua Zhu, Ying Lu, Zhiting Song*, Xuefeng Shao, Xiao-Guang Yue

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

26 Citations (Scopus)

Abstract

Green manufacturing has become an important measure for energy conservation and emission reduction. The government has issued a series of policies, including carbon taxes and quotas, to promote green manufacturing. This study identifies effective green manufacturing modes under government carbon tax and carbon quota policies, considers the automobile manufacturing industry as the research object, and constructs three green manufacturing modes: (i) Product Remanufacturing Mode (PRM), (ii) Green Product Manufacturing Mode (GPMM), and (iii) Hybrid Manufacturing Mode. The analysis reveals that (i) Contrary to common sense, when the government carbon quota is larger, the carbon emission of PRM is lower than that of GPMM. However, when the government reduces carbon allowances, the carbon emissions of PRM are higher than that of GPMM. (ii) When the R&D of remanufacturing technology is more difficult than that of green product innovation technology (without considering price competition), if the government sets a low carbon tax, companies will generate more profit by choosing PRM. Otherwise, companies will obtain more profits by choosing GPMM. However, considering price competition, if the carbon tax is low, companies will obtain more profits by choosing GPMM. Or the company will obtain more profits by choosing PRM. (iii) However, when R&D of remanufacturing technology is less difficult than that of green product innovation technology contrary conclusions of (ii) follow.

Original languageEnglish
Article number135336
Pages (from-to)1-19
Number of pages19
JournalJournal of Cleaner Production
Volume384
DOIs
Publication statusPublished - 15 Jan 2023

Keywords

  • Carbon emissions
  • Carbon policy
  • Green manufacturing modes
  • Stackelberg game
  • Supply chain

Fingerprint

Dive into the research topics of 'The choice of green manufacturing modes under carbon tax and carbon quota'. Together they form a unique fingerprint.

Cite this