Search

Abstract Changes in consumer behavior due to a personal carbon trading (PCT) scheme are theoretically attractive, yet untested in practice. In this paper, simulations on the basis of an equilibrium model are used to examine the effects of carbon allowance prices on energy use choice under a particular PCT scheme. It is shown that the equilibrium price of allowances would emerge under the PCT scheme considered here. Further analyses indicate that the quantity of energy consumption under PCT is a nonlinear function of the allowance price, with a sharp kink at the point of equilibrium. When the allowance price is below the equilibrium price, consumers would prefer higher-carbon energy. In contrast, when the allowance price is above the equilibrium price, consumers would choose lower-carbon energy. However, when the allowance price equals the equilibrium value, consumers would purchase lower-carbon energy and higher-carbon energy simultaneously. Furthermore, it is shown that the initial allowance allocation could also affect energy use choice. On the basis of these results, one of the main implications is that the allowance price should exceed the breakeven price to stimulate consumers to switch to green energy and progressively live a low-carbon lifestyle. [ABSTRACT FROM AUTHOR]

Research on the word-of-mouth intention of consumers has received increasing attention in hospitality research. However, little research has explored the effect of green image on the word-of-mouth intention of consumers and how this effect was mediated by green satisfaction and green trust. Based on the Stimulus-Organism-Response (S-O-R) framework, this research examined the relationship between green image and the word-of-mouth intention of consumers in the Chinese green hotel industry and explored the mediating effects of green satisfaction and green trust. Considering that Millennials (a large and influential generation born in the 1980s and late 1990s) are extremely concerned about green issues, more concerned about the environment than previous generations, and a powerful source of word-of-mouth about products and services, this research also examined the moderating effect of Millennials. The questionnaire survey method was used to collect data from 324 respondents with the help of travel agencies to test these relationships. The results indicated that the green image of green hotels strongly influences consumer green satisfaction and green trust, and consumer green satisfaction has a significant effect on green trust. The consumers’ green satisfaction and green trust are positively related to their intention to recommend green hotels to individuals around them. Furthermore, significant moderating effects of Millennials were found in all paths between the investigated variables in the proposed model. The results also showed that female tourists are more likely than male tourists to recommend green hotels. The implications of these findings were discussed, and limitations and future research directions were suggested. [ABSTRACT FROM AUTHOR]

Cap-and-trade mechanism has a significant effect on firm's production and operation decisions and carbon emissions. This study develops a mathematical model to examine the effect of cap-and-trade mechanism on firm's production planning and emission reduction strategy. Based on the model, the firm's critical production planning decisions, such as the optimal production quantity, optimal allowance selling price and the maximum profit under the cap-and-trade mechanism are derived firstly. Then based on the cost-benefit analysis, the conditions under which the firm makes the optimal emission reduction strategy between buying carbon allowance from the carbon trading market and conducting low-carbon processing are identified. The result suggests that when the low-carbon processing cost is greater than the potential opportunity benefit, the firm is inclined to purchase carbon allowance from the carbon trading market, and vice versa. Finally, a numerical analysis is conducted to investigate the effects of relevant factors, such as carbon quotas, carbon emission rate, low-carbon processing cost and transaction cost on firm's production and operation decisions. The results indicate that under the cap-and-trade mechanism, the transaction cost has a positive effect on allowance selling price. The firm's optimal production quantity and maximum profit is positively related to carbon quotas, while negatively related to carbon emission rate and low-carbon processing cost. This research contributes to enrich related literature and knowledge with regard to carbon emissions reduction at the firm level and highlight the critical importance of cap-and-trade mechanism in reducing carbon emissions. [ABSTRACT FROM AUTHOR]