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In the face of the increasingly dire threat of global climate change, reducing carbon emissions has become an urgent priority for governments and corporations worldwide. The aluminum alloy wheel manufacturing industry bears an even heavier burden for emission mitigation due to its high production volume, complex processes, and proportionally higher carbon footprint. With impending carbon taxes and trading policies looming, the industry urgently needs to strike a balance between maximizing profits and minimizing carbon emissions. Leveraging real-world industry data, this research develops four green Activity-Based Costing (ABC) models and utilizes optimization software to compare the following scenarios: non-continuous carbon tax, carbon tax with trading, tiered tax with exemptions, and exemptions combined with trading. Results demonstrate that integrating carbon trading and targeted tax reductions can improve corporate financial positions without severely compromising environmental goals. Although identifying optimal balance points remains a highly complex process, this study equips enterprises and policymakers with quantitative tools to navigate fluctuating carbon regulatory environments. As national policies progress, more multifaceted dynamic carbon tax models will likely provide more profound insights for sustainable development. [ABSTRACT FROM AUTHOR]

The carbon emission trading markets represent an emerging domain within China. The primary objective of this study is to explore whether carbon price volatility influences stock market volatility among companies subject to these emission trading regulations. Employing daily returns data from 293 publicly traded companies regulated by these emission trading markets, this study encompasses the national carbon market and eight pilot regional carbon markets spanning from August 2013 to October 2023. The results demonstrate that volatility in regional carbon prices positively impacts the stock volatility of companies in the corresponding emission trading region, indicating a volatility spillover effect. Moreover, this spillover effect is more pronounced in sectors marked by lesser carbon intensity than those with greater carbon intensity. The volatility transmission is more pronounced in coastal areas than in inland regions. However, no notable distinctions in volatility transmission are discerned between the periods before and throughout the COVID-19 pandemic. Vector autoregression analyses substantiate that lagged carbon price fluctuations possess limited predictive capacity for contemporaneous equity market volatility and vice versa. The robustness of these outcomes is fortified by applying the E-GARCH model, which accounts for the volatility clustering phenomenon. As the first investigation into the volatility spillover effect between China's emission trading market and corresponding stock markets, this study offers valuable insights into the investment strategies of retail investors, the formulation of carbon regulations by policymakers, and the carbon emission strategies of corporate managers. [ABSTRACT FROM AUTHOR]

The greening trend in consumer markets and the marketization and financialization of carbon emission rights have begun to revitalize carbon assets. However, solitary efforts and the spillover of environmental protection effects still hamper enterprises' enthusiasm for carbon emission reduction. To tackle this challenge, two vertical cooperation mechanisms, cost cooperation and alliance cooperation, are proposed. The mathematical models and solutions are developed for both of the two mechanisms, and their values and applicability are explored, respectively. In addition, the impact of fluctuations in consumer markets, financial markets, and carbon markets on cooperation is examined. The results show that both cooperation models effectively motivate enterprises to enhance carbon reduction and boost market demand. However, cost cooperation may result in inflated product prices and even weaken the profitability of the supply chain. In contrast, alliance cooperation can enhance product price performance and effectively increase supply chain profits. Concerning environmental performance, the initial market is better suited for alliance cooperation, whereas cost cooperation fits the mid-to-late market. The higher financing costs of the financial market and the trading price of the carbon market will strengthen the applicability of cost cooperation. This study offers managerial insights for collaborative decision-making in the context of a multi-market cross-section. [ABSTRACT FROM AUTHOR]