Studies on the Optimal Pollution Prevention Model for Transnational Enterprises

• Main Authors: JING-HONG HUANG, 黃景鴻
• Other Authors: Tyrone Lin
• Format: Others
• Language: en_US
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/87978515940851933565

碩士 === 國立東華大學 === 國際企業學系 === 97 === Recently, issues about the environment, economics and pollution prevention have become more and more important. Under social responsibility, firms need to measure the pollution cost and make a choice between reducing product cost or reducing pollution cost. Under an economics environment, how to choose an optimal pollution prevention strategy is important for transnational enterprises. In this study, we focus on when technology follows GBM. Transnational enterprises have these strategies that can reduce pollution cost： upgrade pollution proceeding technology, industry exodus to another country. Transnational enterprises need to choose an optimal pollution prevention strategy to reduce pollution. This study introduces the real option approach (ROA) to construct a mathematical decision-Making model of optimal transnational enterprises pollution prevention standards under an economics environment . Using this model we can find the optimal decision threshold. Research results refers that government subsidy policy and the more profits transnational enterprise get from prevent strategies, they have more motive to invest and to improve firms to reduce pollution. Research results can refer to transnational enterprises when facing the choice of optimal technology threshold under an economics environment.