Research On Production Decision Model Under Carbon Emission Constraints

With the rapid development of global economy,the greenhouse effect caused by carbon emissions has leaded to serious of natural and social problems.In order to solve these problems,different countries or regions have introduced various policies to limit their carbon emissions.The carbon emission policies effectively curbed the greenhouse gases(GHGs)to a certain extent,but it also seriously affected the operations of the manufacturing firms.How to measure and reduce the carbon emissions of each production link has become an urgent problem to be solved.In face of such challenges,introducing new technology and investing in new capacity have become the best choice of most firms in order to maintain their market competitiveness.The investment of new technology can not only reduce carbon emissions,but also improve the operational efficiency of firms.However,due to the uncertainty of the market environment and the impact of different carbon emission policies,the expansion of new technology capacity still have many problems to solve.As a classic problem of strategic management and operation management,the capacity expansion problem has achieved many theoretical and practical results.However,a gap still exists in research between how manufacturers can expand their capacity and the carbon emission regulations.Considering the influence of the carbon emission policies,the problem which combins capacity investment and carbon emission regulations is extended in this paper.The main research contents of this thesis are as follows:1.The literature review,including the newsboy model,carbon emission constraint policy and green supply chain theory.On the basis of this,this paper reviews and summarizes the relevant literature on the capacity decision under the carbon emission regulations.2.The capacity expansion and production planning under cap-and-trade policy and carbon tax policy are studied respectively.The decision process of the firm is divided into two stages: capacity expansion decision and production planning decision.In the first stage,constrained by the carbon emission regulations,the manufacturer decides whether to invest in new capacity based on the original capacity.In the second stage,after the demand and carbon emission price are realized,the manufacturer decides its production quantities by using the original and new capacity,respectively.According to the optimization theory,a two-stage capacity expansion model with stochastic demand is constructed to maximize the firm's long-term profit.By analyzing the capacity expansion model,the optimal capacity expansion and production decision of new and original technology are obtained.3.On the basis of the optimal capacity expansion and production planning of the firm,the management significance of the model is analyzed.Firstly,under the cap-and-trade regulation,it is found that the optimal expansion capacity of the firm is independent of the carbon emission cap but related to the carbon credit price in the market.This conclusion provides a theoretical basis for the international cooperation to reduce carbon emission.Secondly,under the carbon tax regulation,on the one hand,it is found that the increasing carbon tax rate is not always conducive to the introduction of new technologies.On the other hand,subsidies for new technology investment has been studied and it is found that subsidies for new technologies to enable firms to introduce more new technology.Therefore,the government should increase subsidies for new energy technologies in order to promote the new technology.Finally,numerical analyses are studied under the cap-and-trade policy and the carbon tax policy.