Production Operation Strategies For Manufacturing Enterprises Under Carbon Quota Constraints

To achieve the emission reduction goal,on the basis of drawing lessons from experience of oversea emission trading systems(ETS),China has actively carried out seven ETS pilot projects,which has accumulated knowledge and experience in the full completion of the nation carbon market in 2017.The implementation of carbon ETS will impact on the business model of a company.Based on previous studies at home and abroad,taking the manufacturing enterprise as the research object,this research focuses on the core issue of “production operational strategies with carbon quota constraints”.We continue our research with the framework “how will the competitiveness change-how to alleviate the competitive loss-how will the upstream-downstream supply relationship change-how to optimize the configuration of the whole supply chain”.Under the framework,based on game theory and operational research methodology,we build model to analyze the changes of cost,profit,relative competitiveness change,supply relationship with upstream supplier,and supplier selection decision of a company with carbon quota constraints.The main issues and innovative work are as follows:Firstly,by building a duopoly model with different carbon intensity,the influence of carbon intensity on production strategies under carbon quota constraints is revealed.It this part,carbon intensity is first identified as a new competitiveness after ETS is carried out.Then,game theory and duopoly model is used to analyze the different emission mitigation pressures caused by different carbon intensities.Secondly,we discuss the possibility of using carbon offsetting mechanism to ease the competitiveness loss caused by carbon quota constraints.After summarizing the mainstream offsetting design,we analyze the company's competitiveness change under different offsetting schemes.A numerical case is used to show how to use the offsetting scheme to flexibly cope with ETS by adjusting the production outcomes,offsetting emission amount,and quota purchasing amount.The results provide reference not only for enterprises to make operational decisions,but for governments to design offsetting policy scheme in order to balance the economic development and carbon emission reduction.Thirdly,we discuss the upstream and downstream supply relationship change under carbon quota constraints.In addition to the cost of purchasing carbon quotas,when both upstream supplier and downstream manufacturer participate the ETS,the higher price of raw materials caused by ETS is the indirect impact.Considering the indirect cost pressure of downstream manufacturer,we use stackelberg model to analyze the dynamic supply relationship between upstream supplier and downstream manufacturer,focusing on the outcome change of downstream manufacture and pricing strategy of upstream supplier.Fourthly,we extend the research object from supplier and manufacturer to the whole supply chain.Taking the footprint of the whole supply chain into account,we make an optimal layout for the supply chain under carbon quota constrains.The innovative work is that we consider the embodied carbon emissions of the raw material,which have impact on the supplier selection.Finally,according the research conclusion of each part,combining the impact of carbon quota constraints on enterprises and their reacts,we propose corresponding policy suggestion for the framework design of ETS.Also,some forecast to the further research is proposed by combing the frontier issues and shortcomings of this research.