Decisions on Environmental Investment and Production Planning under a Cap and Trade Policy

• Main Authors: Chi-Wei Kao, 高琦幃
• Other Authors: Dah-Chuan Gong
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/7zge86

碩士 === 中原大學 === 工業與系統工程研究所 === 103 === The reduction of greenhouse gas emissions has been on the top of political agendas in many countries, as the world is increasingly aware of the importance of energy conservation and carbon reductions. In fact, the United Nations stated in 2014 that carbon emissions must be zero by 2070 at the latest to avoid major calamities due to global warming. This has highlighted the importance of greenhouse gas reductions and contributed to the hope for a global climate agreement. The carbon trading mechanism came into being following the Kyoto Protocol and the policies to reduce greenhouse gas emissions in different countries. companies review greenhouse gas inventory and reductions according to ISO 14064 defined by International Standard Organization. Carbon neutrality can be achieved by selling excess carbon credits or buying for the shortfall in carbon credits. It is also necessary to evaluate the feasibility of investment in carbon reductions. In summary, companies have to take into account the government policy intensity, carbon prices and demand trends when they seek to boost competitiveness with carbon reductions. This thesis designs a decision model for carbon reductions with dynamic planning for cost minimization. The model incorporates factors such as carbon prices, emission caps allowed by governments, inventory costs, capacity planning and carbon emissions. It is hoped that companies reduce the total cost by adjusting capacities and with capex in energy efficiency and high productivity equipment. This thesis analyzes the statistics and parameters established before presenting the managerial implications, in order to assist companies in the balancing act between economic sustainability and environmental sustainability.