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Sweden was one of the first countries to introduce a carbon tax back in 1991. We assemble a unique data set tracking CO2 emissions from Swedish manufacturing firms over 26 years to estimate the impact of carbon pricing on firm-level emission intensities. We estimate an emission-to-pricing elasticity of around two, with substantial heterogeneity across subsectors and firms, where higher abatement costs and tighter financial constraints are associated with lower elasticities. A simple calibration suggests that 2015 CO2 emissions from Swedish manufacturing would have been roughly 30% higher without carbon pricing. [ABSTRACT FROM AUTHOR]

We study a newsvendor problem with greenhouse gas (GHG) emissions at the disposal stage regulated by a cap-and-trade policy. We first consider a synchronous version of the problem where the replenishment period and the emission assessment period are the same. For this problem, we propose simple algorithms to derive the optimal quantity and cost for both continuous and discrete demand distributions. We show that ignoring the carbon tax may lead to large overcost, especially when the GHG quota is small. For a normally distributed demand, we also show that the demand standard deviation has a non-linear and non-monotonic effect on the order quantity. We then investigate an asynchronous version of the problem where replenishment decisions occur at a higher frequency than the quota allocation. We formulate this lot sizing problem as a Markov decision process and solve it with a dynamic programming algorithm whose complexity is assessed. Through a numerical experimentation and theoretical results, we demonstrate how and when the flexibility of the optimal dynamic replenishment decisions allows to reduce costs. When approaching the end of the time horizon, the uncertainty reduction allows the decision maker to adopt a riskier policy and order larger quantities. [ABSTRACT FROM AUTHOR]

As the EU and the US successively proposed the carbon border adjustment mechanism (CBAM) and the Clean Competition Act (CCA), importers are now required to declare the carbon emissions of their products. Particularly, wheel companies face increasing time pressure with the gradual development of implementation paths for net-zero emissions and implementing carbon pricing policies in various countries. This research uses the production data of Taiwan wheel companies to establish a mathematical model for the activity-based cost optimisation decision-making process. It explores the impact of different carbon emission costs on a company's product mix with pricing decisions. Further, the research proposes five mathematical programmes for single-period cost optimisation decision-making under carbon pricing. These models provide some detailed view, such as changes in profits and product mix caused by high carbon taxes or other changes for each resource. Furthermore, the production cost optimal model proposed in this research can be used by enterprises to fulfill their social responsibilities while ensuring profitability and serve as a reference for making net-zero transformation decisions. [ABSTRACT FROM AUTHOR]

Carbon tax represents governments' approach to steering the economy towards a greener future. Our research question focuses on the impact of carbon tax policy on a firm's production decision and revenue and on total social welfare. In particular, we assume that a firm's decision is subject to its behavioural considerations or, in other words, its risk attitude. We model a government plan to charge a carbon tax, and a risk-averse (or risk-neutral) firm needs to plan its production and estimate its profit if the carbon tax policy is implemented. We show that it is possible for a risk-averse firm's optimal profit, in some cases, to be higher than that of a risk-neutral firm when facing a carbon tax. This implies that the risk-averse attitude is not necessarily harmful to the firm's profit. For operations management scholars, our model highlights the importance of integrating firms' behavioural responses into the carbon tax price. Our model suggests that for governments to implement carbon tax policy effectively, they should make carbon prices vary under certain conditions and not worry about price variation antagonising firms at large. [ABSTRACT FROM AUTHOR]

In this article we analyze how syngas produced in a renewable way can replace fossil‐fuel based syngas production and thereby play an essential role in the decarbonization of industry. We show that in essentially all industrial applications renewable H2 and/or CO can replace syngas from fossil fuel feedstocks, and quantify the flows of these chemical building blocks required for the transformation of industry towards a net‐zero emitting sector. We also undertake a techno‐economic analysis, in which we demonstrate that under specific assumptions for the learning rates of some of the key process components, renewable syngas can become cost‐competitive with that produced from fossil fuels. Cost competitiveness, however, only materializes for four of the five routes when natural gas prices are at least around 3 €/GJ and carbon taxes increase from 90 €/tCO2 today to 300 €/tCO2 in 2050. [ABSTRACT FROM AUTHOR]

Indigenous communities in the North American Arctic are characterized by mixed economies that feature hunting, fishing, gathering, and trapping activities--and associated sharing practices--alongside the formal wage economy. The region is also undergoing rapid social, economic, and climate changes, including, in Canada, carbon taxation, which is impacting the cost of fuel used in local food harvesting. Because of the importance of local foods to nutrition, health, and well-being in Arctic Indigenous communities, there is an urgent need to better understand the sensitivity of Arctic food systems to social, economic, and climate changes and to develop plans for mitigating potential adverse effects. Here, we develop a Bayesian model to calculate the substitution value and carbon emissions of market replacements for local food harvests in the Inuvialuit Settlement Region, Canada. Our estimates suggest that under plausible scenarios, replacing locally harvested foods with imported market substitutes would cost over 3.1 million Canadian dollars per year and emit over 1,000 tons of CO2-equivalent emissions per year, regardless of the shipping scenario. In contrast, we estimate that gasoline inputs to harvesting cost approximately $295,000 and result in 315 to 497 tons of emissions. These results indicate that climate change policies that fail to account for local food production may undermine emissions targets and adversely impact food security and health in Arctic Indigenous communities, who already experience a high cost of living and high rates of food insecurity. [ABSTRACT FROM AUTHOR]

Recycling carbon revenues as Equal Per Capita Carbon Dividends (ECDs) is thought to neutralise the two main objections to carbon pricing, namely that it is regressive and that it hinders the poor from meeting basic needs. This article focuses on the waste objection to carbon pricing plus ECDs. If the rationale for ECDs is to protect the consumption of the worst off, why pay carbon dividends to the rich as well? I examine three different normative arguments in favour of ECDs. First, the argument of common ownership of the atmosphere, which can be based on both libertarianism and isolationist egalitarianism. Second, the argument that the rich are net contributors to ECDs through their carbon taxes. Third, a consequentialist argument focusing on the pragmatic advantages of ECDs, especially in terms of social acceptability and low information costs. I conclude that none of these arguments can provide a normative justification for ECDs. [ABSTRACT FROM AUTHOR]

This study aims to elucidate the implications of carbon peak and carbon neutrality targets on corridor logistics, with a focus on the burgeoning high-speed rail express sector. Acknowledging carbon emissions taxation as an integral component of transportation costs, it examines the competitive dynamics among four cargo transport modes: high-speed rail (HSR), conventional rail, aviation, and road transport. Within a strategic game framework, carriers are analyzed based on freight rates, speed, safety, reliability, and convenience to assess their utility. A dynamic game model and a solution approach are developed, aiming to optimize freight-related variables, maximize carriers' generalized profits, and enhance shippers' utility. Empirical validation is provided through case studies in Xi'an and Lanzhou, northwest China, affirming the model's efficacy. The findings reveal the strong competitive edge of the high-speed rail express in the corridor, offering valuable insights for carrier pricing strategies, emission tax rate setting, and macro-policy adjustments in the transport sector. [ABSTRACT FROM AUTHOR]

Asset pricing and climate policy are analyzed in a global economy where consumption goods are produced by both a green and a carbon‐intensive sector. Given that the economy is initially heavily dependent on carbon‐intensive capital, the desire to diversify assets complements the attempt to mitigate economic damages from climate change. In the longer run, however, a trade‐off between diversification and climate action emerges. We derive the optimal carbon price and the equilibrium risk‐free rate, and risk premia. Climate disasters significantly decrease the risk‐free rate but increase risk premia on financial assets, especially if no climate policy is implemented. [ABSTRACT FROM AUTHOR]

This paper investigates the asymmetric effects of fossil fuels, foreign direct investment (FDI), and globalization on the ecological footprint (EFP) in Mexico from 1975 to 2020. To this end, the Autoregressive Distributed Lag (ARDL), Nonlinear Autoregressive Distributed Lag (NARDL), and the wavelet coherence approach are conducted. Based on the outcomes of the ARDL method, economic growth and fossil fuel consumption lead to ecological degradation, while foreign direct investment improves environmental conditions. Globalization has no impact on the environment. The NARDL approach illustrates that a positive shock to fossil fuels, FDI, and globalization degrades the environment. The wavelet coherence results emphasize the adverse environmental influence of economic growth and fossil fuels. These results imply that the Mexican government should conduct its economic expansion considering the principle of sustainable development. In this context, policymakers should propagate carbon taxes and similar instruments to promote clean energy sources that can replace fossil fuels and are compatible with sustainable development policies. [ABSTRACT FROM AUTHOR]

Increasing strict carbon regulations enforced by regulators are encouraging companies to seek better ways to manage inventories with a desire to reduce carbon emissions from their operations. This work illustrates an inventory model to obtain the retailer's optimal replenishment policy for non-instantaneous deteriorating items with fixed lifetime and partial backordering under cap-and-price, cap-and-trade, and carbon tax regulations with the goal of maximizing a retailer's profit while simultaneously reducing total carbon emissions. To investigate the work from a more general perspective, the market demand structure of perishable products is considered deterministic in nature and is reliant on both the selling price and stock level, while the shortage of items is a decreasing function of waiting time up to the next replenishment. This study examines, for the first time, the best replenishment decisions for non-instantaneous deteriorating items with an expiration date after characterizing their properties theoretically under carbon regulations. Integrating all possible cases of the optimal solutions from theoretical outcomes, different numerical examples are demonstrated, and finally, several management insights are provided by investigating the changing pattern of the optimal strategies for variation in the system parameters. The derived outcomes highlight that the cap-and-price policy performs well both economically and environmentally for the inventory decision-maker when the penalty is less than or equal to the reward for each unit of carbon emission. Furthermore, in cap-and-price regulation, the total profit is increased by 3.14 % , 8.10 % , and 1.63 % from cap-and-trade, carbon tax, and without carbon regulation, respectively, and the total amount of emission is decreased by 5.38% from cap-and-trade and carbon tax regulation. [ABSTRACT FROM AUTHOR]

The worldwide increasing concern for climate change persuades policy makers to take into account also the environmental aspects when designing and assessing the effectiveness of economic policies. Fiscal reforms can be combined with environmental measures to achieve the complex target represented by economic growth and environmental protection. In this vein, this study proposes the reorganisation of federal taxation on corporate and personal income in USA, financed by the introduction of a carbon tax on economic activities. The study uses a dynamic CGE model calibrated on a US Social Accounting Matrix (SAM) with environmental accounts. The economic, socioeconomic and environmental impact assessed in this study gives two major policy recommendations: firstly, the reduction in personal income tax that is more geared to economic growth compared to the reduction in corporate income tax, and secondly, not to be detrimental for growth, the carbon tax introduction must be part of a policy framework. Indeed, if the personal income tax reduction is financed with the introduction of a carbon tax on economic activities, there is no harm to the economic growth and a benefit for the environment arises. [ABSTRACT FROM AUTHOR]

This paper sheds some light on the consequences of a carbon tax increase to achieve the national goal for carbon emissions. By use of a spatial computable general equilibrium model, STRAGO, the main purpose of the paper is to illustrate the effects on sectors in the economy and regions in Sweden from a climate scenario, by estimating expected substitution effects from a predetermined reduction in emissions. The climate scenario implies a gradual increase in the current carbon tax until the goal for the reduction in emissions has been reached. Doubling the carbon tax rate is expected to reduce the total consumption of fossil fuels by 18%, and in terms of reduced emissions and total welfare, the results are of the same order of magnitude as in previous Swedish studies. At the regional level, the effect on production is largest in Region West, as the production of petroleum and a large part of manufacturing is concentrated to this region. In terms of regional welfare, the northern regions, Upper-north in particular, lose more than central regions, which reflects differences in both industrial structure and carbon intensity, due to different transportation expenditures. The impact on welfare in northern regions is however mitigated by the substitution from fossil fuels to biofuels, as production of biofuels is concentrated to these regions. [ABSTRACT FROM AUTHOR]

We establish a general-equilibrium model to compare the efficiency of two emission regulation policies used worldwide: the carbon tax (CT) and the emission trading scheme (ETS). Assuming monopolistic competition and heterogeneous firms, we show that the ETS is better in an economy with a high degree of heterogeneity, and the CT is better otherwise. We also explore how the market distortions under these two regulation policies are different. Moreover, we find that the excessive input of an immobile resource in manufacturing production may result in market inefficiency. [ABSTRACT FROM AUTHOR]

We estimate the effect of the natural gas fuel cost on the choices for a new power generator; the energy source of gas, wind, or solar; and its capacity. Higher fuel costs increase odds of more renewable capacity, as opposed to gas, with large, significant effects for both wind and solar. As the United States has yet to implement nationwide carbon policies, we use fuel cost to proxy for a carbon tax. Our scenarios of $10–$50 per ton of carbon dioxide reduce emissions from new generators by 22%–47%, equivalent to 2%–4% of total electricity emissions. [ABSTRACT FROM AUTHOR]

While countries increasingly commit to pricing greenhouse gases directly through carbon taxes or emissions trading systems, indirect forms of carbon pricing—such as fuel excise taxes and fuel subsidy reforms—remain important factors affecting the mitigation incentives in an economy. Taken together, how can policy makers think about the overall price signal for carbon emissions and the incentive it creates? We develop a methodology for calculating a total carbon price applied to carbon emissions in a sector, a fuel, or the whole economy. We recognize that rarely is a single carbon price applied across an economy; many direct carbon pricing instruments target specific sectors or even fuels, much like indirect taxes on fossil fuels; and carbon and fuel taxes can be substituted for one another. Tracking progress on carbon pricing thus requires following both kinds of price interventions, their coverage, and specific exemptions. This inclusive total carbon pricing measure can facilitate progress in discussions on minimum carbon price commitments and inform assessments of the pricing of carbon embodied in traded goods. Calculations across 142 countries from 1991 to 2021 indicate that although direct carbon pricing now covers roughly one-quarter of global emissions, the global total carbon price is not that much higher than it was in 1994 when the United Nations Framework Convention on Climate Change entered into force. Indirect carbon pricing still comprises the lion's share of the global total carbon price, and it has stagnated. Taking these policy measures into account reveals that many developing countries—particularly net fuel importers—contribute substantially to global carbon pricing. Tackling fuel subsidy reform and pricing coal and natural gas emissions more fully would have a profound effect on aligning carbon prices across countries and sectors and with their climate costs. [ABSTRACT FROM AUTHOR]

The world is currently suffering from a significant environmental crisis characterized by global warming, rising sea levels, foods, and droughts. This has adversely affected the poorest nations, resulting in increased occurrences of both droughts and flooding that impact their means of livelihood. In order to address this issue, countries globally need to develop policies that efficiently reduce environmental destruction and achieve zero carbon emissions. A number of empirical estimates were used in this study. The Friedman, Frees, and Pesaran tests are used to evaluate cross‐sectional dependence. Unit root tests, such as the augmented Dickey–Fuller test, are used to assess the stationarity of variables. The Pedroni test is used in co‐integration analysis to find the long‐term relationships between variables, and a novel Panel quantile auto‐regression distributed lag methodology to investigate both long‐term and short‐run dynamics across G‐17 countries spanning from 2000 to 2021. The results clarify the pivotal role of carbon taxes, technological innovation, and renewable energy consumption in reducing carbon dioxide (CO2) emissions, thereby enhancing environmental quality, while the sustained use of natural resources is harmful to environmental quality. Furthermore, the finding reveals that Fintech's association with CO2 emissions negatively impacts environmental quality. The study also demonstrates the efficacy of environmental taxes in reducing CO2 emissions across, supporting for higher carbon pricing as a viable policy tool for environmental protection. [ABSTRACT FROM AUTHOR]

With the continuous growth of low-carbon economy and people's increasing preference for low-carbon products, the building carbon emission reduction (CER) has been highly concerned by the government. Therefore, in this study, we establish a game model through differential game to analyze the impact of government policies on building's CER. We get: (1) Compared with the carbon tax policy, the government policy combining carbon tax and cost subsidy is more conducive to reducing carbon emissions; (2) For the three government policies, when the cost subsidy rate is lower than a fixed value, the government policy combining carbon tax and cost subsidy is the optimal strategy for building's CER. When the cost subsidy rate is greater than a fixed value, the cost subsidy policy is the best strategy for building's CER. [ABSTRACT FROM AUTHOR]

In this work, we propose a new model to evaluate the impact of potential governmental policy as a green transition to decarbonise road freight transport. Contrary to the classical literature on the topic, our approach employs a bilevel structure optimization scheme. More precisely, a single-leader-multi-follower (SLMF) model is developed, where the state represents the leader and the freight companies act as the followers. A carbon tax is the selected public policy to foster the shift to less polluting freight technologies. The model responds to an exogenously determined demand that must be satisfied by a fleet that remains constant in size through time. The aim is thus to determine to what extent the tax policy will generate an evolution of the fleets of the different companies towards greener vehicles. An additional scientific contribution of the paper is that the SLMF model is solved thanks to a new numerical approach based on the so-called SOS1 technique. The implementation is applied in the case of the Ecuadorian freight transport and the results highlight an interesting evolution of the fleets. [ABSTRACT FROM AUTHOR]

Rates of achieving Urban Sustainability vary between world countries, it is one of the United Nations Sustainable Development Goals (SDGs 20230). Sustainable urbanism could be achieved through some common basic mechanisms such as awareness, enacting binding laws and legislation, imposing taxes, and fees, or providing various fiscal and urban incentives. Developing countries often do not resort to using fiscal incentives to avoid its reduction effect on their limited financial resources, and they may also avoid imposing relevant taxes such as carbon tax, energy tax, and climate change tax to prevent its negative effect on the competitiveness of the developing industrial and economic sectors there. Therefore, the research aims to propose the most appropriate urban incentives for Egypt and developing countries in general, with minimum negative commercial effect, and as one of the most influential means towards sustainability to fulfill the Egyptian Housing Strategy and activate GPRS “Green Pyramid Rating System”. The research follows comparative methodology, it compares the commonly used incentives in many countries globally and regionally. It identifies the incentives that may be more appropriate for Egypt and other developing countries in general. [ABSTRACT FROM AUTHOR]

Background: The combustion of coal, the world's most polluting form of energy, must be significantly curtailed to limit the global average temperature increase to well below 2°C. Since carbon pricing is politically constrained, alternative policies, such as compensating coal plant owners, for early closure are being considered. Methods: Germany is the only country to date to have implemented a reverse auction to give compensation payments for early coal retirement. We analyse the merits and demerits of Germany's policy, drawing comparisons with other countries that have phased out coal through other means. Results: While bilateral negotiations can lead to excessive compensation due to asymmetric information, a competitive auction can discover the true cost of closure and help allocate funds more efficiently and transparently. Germany's experience illustrates the practical necessity of adjusting auction design to ensure additionality, reduce the risk of gaming and manage the security of supply. Conclusion: While auctions have attractive properties in theory, in practice, their design must address these concerns to unlock the full benefits. Retirement auctions that deliver compensation payments can be a pragmatic policy option, particularly in countries where an incumbent coal lobby makes punitive measures such as carbon taxation hard to implement. However, where there is a concentration in coal plant ownership, auctions will not work and alternative policies, such as enhanced incentives for scrappage and repurposing of coal assets, could be used instead. In many coal-burning areas, the decline of coal is slowed down by long-term contracts that insulate coal-fired generation from competition. Compensation for early closure is a 'pay-to-break' mechanism which may be a politically feasible alternative to 'polluter-pays' policies such as carbon pricing. Competitive auctions can deliver efficient and transparent compensation payments for early coal closures relative to negotiations which suffer from asymmetric information. Ensuring that there is sufficient competition in a coal closure auction through design adjustments can ensure discovery of true closure costs. Shutting down coal-fired power plants can lead to fiscal savings in countries where coal-fired generation is supported by capacity payments. [ABSTRACT FROM AUTHOR]

In recent decades, there has been increasing research interest in individuals' support of and resistance to climate and environmental policy instruments. However, there is an empirical bias in the literature, as few studies have been conducted in low-income countries. Based on a survey with 4,766 respondents we identify the level of public acceptability for climate policy instruments and their determinants in East Africa (Ethiopia, Kenya, Rwanda, Tanzania and Uganda). While our sample is not fully representative of the East-African population, we capture highly educated individuals in urban areas, who are likely to have a large influence on policy processes. In line with previous studies in other contexts, we find that higher education and climate change concern are linked to the acceptability of policies aimed at reducing fossil fuel consumption. Specifying how the revenue from a climate tax or subsidy removal would be used, almost doubled the support for these policy instruments. In contrast to earlier studies, we find that investments in social programmes, not environmental programmes, was the revenue specification that increased the acceptability the most. One possible explanation would be that in a context where poverty is more prevalent, social issues are more salient to people. We also find weak associations between trust in government and the acceptability of climate policy instruments in East Africa and large heterogeneity across the five focal East African countries. Besides establishing an empirical foundation for future research on climate policy support in East Africa, the study provides essential policy insights: Investing in education and improved information, contributing to increased awareness and understanding of climate concerns, can potentially increase support for climate policy proposals also in the East African context. Earmarking revenues from climate policy instruments for social programmes may also significantly boost support. However, as our study is not fully representative of the population in the five countries and relies on stated preferences, which may be subject to different biases, the results should be interpreted with caution. In a sample skewed towards more urban and educated East-Africans, specifying how the tax revenue would be used more than doubled the acceptability for climate taxes. Investments in social programmes was the revenue specification that increased the acceptability for climate taxes the most. Earmarking revenue use may be a way to increase carbon tax acceptability in East Africa. Investing in education and improved information contributing to increased awareness and understanding of climate concerns, can potentially increase support for climate policy proposals. The acceptability of a climate tax on fuel is lower than the acceptability of a quantity-based regulation on fossil fuel across the urban, well-educated and potentially politically influential population in East Africa. [ABSTRACT FROM AUTHOR]

Excessive emission of greenhouse gases leads to the increasing greenhouse effect, adversely affecting the global climate. Carbon dioxide is the dominant part of greenhouse gases; reducing its emission is the most important way to solve the climate problem. Aiming at the characteristics of the dangerous goods transportation market and the development of the carbon tax policy, the carbon tax cost and the cost of dangerous goods transportation are introduced, and the characteristics of the dangerous goods transportation and the road traffic network and the road traffic in each period are fully analyzed. The optimization model of the path of the hazardous goods vehicles is established with the optimization objective of the lowest total cost. Then, by analyzing the advantages and disadvantages of bacterial foraging algorithm (BFA) and ant colony algorithm (ACO), the hybrid BFA-ACO algorithm is established by combining the two, and the replication and convergence operations of bacterial foraging algorithm are introduced into the ACO algorithm to improve the convergence speed and global convergence ability of the algorithm. The hybrid algorithm is then used to optimize and solve the path optimization model of hazardous materials vehicles and compared with the classical algorithms Genetic Algorithm (GA) and ACO for solving the path of dangerous materials vehicles. A comparison of the optimization results reveals that optimizing the model by bacterial foraging-ACO algorithm is better than optimizing the model by a single algorithm. [ABSTRACT FROM AUTHOR]

Price incentives for reducing fossil fuel related carbon emissions are an important component of effective and efficient climate policy. Current incentives stem from a mixture of energy taxes and carbon pricing (incentivizing less emissions) and diverse support measures for fossil fuels (incentivizing more emissions). We develop a net carbon price indicator that complements existing subsidy and carbon pricing indicators. It can be calculated on different aggregation levels and compared across countries. We calculate the different components and our aggregate indicator for the year 2018 and for eight countries including the worlds' six largest emitters. Our analysis reveals large differences in net carbon prices across countries and across sectors within countries. We argue that the sectoral differences can inform about adequate national policy reforms while the aggregate national indicator can be useful for international negotiations about comparable national efforts. [ABSTRACT FROM AUTHOR]

This article explores various challenges faced by domestic and international security, including climate change, loss of democratic governments, reproductive rights, and mass shootings. It highlights the efforts of individuals and organizations in America's heartland to address these issues. The article also discusses the rise of populist movements globally and emphasizes the importance of engagement with the rest of the world. Specific initiatives mentioned include the development of zero-emission infrastructure along the Interstate 80 Midwest corridor and the use of renewable natural gas by Cummins Inc. and Purdue University. The article emphasizes the need for local action, innovation, and collaboration to tackle these challenges. The federal government has recognized the potential of hydrogen to transform transportation and has provided funding to MachH2. The Midwest Hydrogen Hub, located in a key industrial and transportation corridor, plans to use hydrogen in various sectors such as steel and glass production, power generation, and transportation. The hub aims to create jobs and produce hydrogen using renewable energy, natural gas, and low-cost nuclear energy. Indiana is also promoting electric vehicle adoption through incentives and the installation of EV charging stations. The state is attracting foreign car manufacturers like Subaru, which is considering expanding its EV manufacturing capacity in Indiana. Indiana is also investing in renewable energy projects such as the Mammoth Solar farm and the Fowler Ridge Wind farms, driven by financial incentives and the need to transition away from coal and reduce carbon emissions. [Extracted from the article]

The refining industry is shifting from decarbonization to hydrogenation for processing heavy fractions to reduce pollution and improve efficiency. However, the carbon footprint of hydrogen production presents significant environmental challenges. This study couples refinery linear programming models with life cycle assessment to evaluate, from a long-term perspective, the role of low-carbon hydrogen in promoting sustainable and profitable hydrogenation refining practices. Eight hydrogen-production pathways were examined, including those based on fossil fuels and renewable energy, providing hydrogen for three representative refineries adopting hydrogenation, decarbonization, and co-processing routes. Learning curves were used to predict future hydrogen cost trends. Currently, hydrogenation refineries using fossil fuels benefit from significant cost advantages in hydrogen production, demonstrating optimal economic performance. However, in the long term, with increasing carbon taxes, hydrogenation routes will be affected by the high carbon emissions associated with fossil-based hydrogen, losing economic advantages compared to decarbonization pathways. With increasing installed capacity and technological advancements, low-carbon hydrogen is anticipated to reach cost parity with fossil-based hydrogen before 2060. Coupling renewable hydrogen is expected to yield the most significant economic advantages for hydrogenation refineries in the long term. Renewable hydrogen drives the transition of refining processing routes from a decarbonization-oriented approach to a hydrogenation-oriented paradigm, resulting in cleaner refining processes and enhanced competitiveness under emission-reduction pressures. [ABSTRACT FROM AUTHOR]

Discourse concerning themost effective way for enterprises to offset environmental impacts is well established. While certain approaches like the Triple Bottom Line (TBL) have gained widespread acceptance, other initiatives like introducing the Carbon Tax in Australia have not been successful. This study examines the practical implementation of two environmental accounting models, the TBL and Carbon Tax, analysing their benefits and drawbacks and focusing on their application within the Australian accounting system. Using discourse and content analysis within two case studies of two different sectors -- the banking sector (Westpac) and themanufacturing sector (BlueScope), this research contributes to the discourse concerning the implementation of such disclosures and how models such as theTBLand CarbonTax initiative could be effectively used in practice. The results show that the implementation of theTBLwas more widely adopted and seen as a positive factor in determining the company's environmental impact as viewed by investors. The Carbon Tax was initially adopted less frequently until modifications were made to allow for voluntary compliance. This was due to the misalignment of the cost of the tax with the financial priorities of each sector. Furthermore, the study suggests that a more comprehensive approach that leverages the strengths of both models to complement each other within an integrated framework may be the best solution for organisations seeking a more systemic approach to environmental disclosures and offsetting in their supply chain network. [ABSTRACT FROM AUTHOR]

Purpose: This study investigates the association between debt overhang and carbon emissions (both direct and indirect emissions) using a sample of US publicly listed firms. Design/methodology/approach: The study applies generalized least squares (GLS) regression analyses to a sample of 2,043 US firm-year observations over a period of 14 years from 2007 to 2020. The methods include contemporaneous effect, lagged effect, alternative measures of carbon emissions and debt overhang, intensive versus non-intensive analysis, channel analysis, firm fixed effects, change analysis, controlling for credit rating analysis, propensity score matching approach, instrumental variable analysis with industry and year fixed effect. Findings: This study's findings reveal that the debt overhang problem increases carbon emissions. This finding holds when the authors use alternative measures of carbon emissions and debt overhang. The authors find that carbon abatement investment is a channel that is negatively impacted by debt overhang, which in turn increases carbon emissions. This study's results are robust for several endogeneity tests, including firm fixed effects, change analysis, propensity score matching approach and two-stage least squares (2SLS) instrumental variable analysis. Practical implications: The outcome of this research has policy implications for several stakeholders, including investors, firms, market participants and regulators. This study's findings offer insights for investors and firms, helping them allocate resources effectively and make financing decisions aimed at reducing carbon emissions. Regulators and policymakers can also use the findings to formulate policies that promote alternative sustainable finance practices. Originality/value: The outcome of this research is likely to help firms develop their understanding of the debt overhang problem and undertake strategies that yield a significant amount of funding to invest in reducing carbon emissions. [ABSTRACT FROM AUTHOR]

We study how the implementation of emissions trading systems (ETSs) impacts emissions reductions and the usage of renewable energy using a panel sample of the largest 100 countries worldwide. Exploiting cross-country variations in ETS implementations, we show that ETS adoption materially reduced greenhouse gas (carbon dioxide) emissions by 12.1% (18.1%). Moreover, ETSs reduced overall emissions by cutting the usage of fossil fuels such as coal by 23.70% while boosting the usage of renewable energy by 61.59%, on average. In contrast, introducing carbon taxes has a less effective impact on emissions reduction. It fails to boost the usage of renewable energy, though elevating tax rates and expanding tax coverage may help enhance the efficacy of carbon taxes. This paper was accepted by Victoria Ivashina, finance. Funding: H. Ru thanks the financial support from the Nanyang Technological University, and Ministry of Education, Singapore, under its Tier 1 RG134/20. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2023.03143. [ABSTRACT FROM AUTHOR]

This article examines a supply chain network that considers both economic and environmental factors. The network faces challenges related to multi‐item products and non‐homogenous vehicle types with different costs. Additionally, the production process involves multiple energy sources that emit different levels of air pollution. The main objective is to maximise profits while adhering to different carbon policies. To achieve this goal, the paper presents several supply chain models that are compared under different schemes: no carbon policy (basic one), carbon tax policy, carbon emission policy and carbon trading policy. These models were coded and solved to demonstrate their effectiveness for different conditions and scenarios. The results provide valuable insights for supply chain managers, enabling them to make well‐established decisions for executive planning. [ABSTRACT FROM AUTHOR]

There is still considerable resistance against carbon pricing — i.e. carbon taxation or cap-and-trade — in the social and policy sciences. We review its main arguments and conclude that they are not supported by the theoretical and empirical literature on instrument performance. Critics are also unable to offer alternative and feasible instruments that limit free riding in climate solutions and perform better on main evaluation criteria, namely effectiveness, efficiency, equity, and global-harmonization potential. Their argument that carbon pricing meets strong political resistance is countered by its widespread implementation already and by its ability to compensate inequitable impacts. We argue that overcoming unsubstantiated criticism on carbon pricing will lead to more consistent advice from policy experts to politicians, thus improving the feasibility of, and accelerating progress towards, globally harmonized and stringent climate policy. All in all, it might be more widely acknowledged that the remarkable feature of carbon pricing is that, if well implemented, it has a great number of advantages and few disadvantages. Rather than weakening political support by criticizing carbon pricing, critics would contribute more productively to effective global climate policy by defending proper and uniform implementation of it. [ABSTRACT FROM AUTHOR]

With the increasing requirements for environmental protection, authorities have enacted different carbon policies to promote sustainable practices. This study considers the competition among different manufacturers and multiple demand markets in the supply chain network. We examine and compare their equilibrium decision conditions under three common carbon policies: carbon cap, carbon cap‐and‐trade, and carbon tax. Results suggest that under lower carbon caps, manufacturers greatly reduce their carbon emissions by reducing production quantities, which causes a decrease in profits. However, an appropriate carbon cap size can not only motivate manufacturers to reduce carbon emissions but also improve their profits. Under a certain price for carbon credit, the effectiveness of a carbon cap‐and‐trade policy is similar to that of a carbon cap policy, but it has more flexibility. Carbon tax is effective, but it brings more tax burden to manufacturers. We provide implications for companies to optimize their production methods to achieve sustainability. [ABSTRACT FROM AUTHOR]

This paper investigates the optimal production and carbon reduction strategy for a capital‐constrained remanufacturing firm considering demand uncertainty. The remanufacturing firm can accept low‐carbon credit financing. We construct optimization models with no financing and low‐carbon credit financing and analyze the impacts of capital, carbon emission caps, and other factors on the remanufacturer's decision and profit. The results show that (i) the output of remanufactured products and overall profit are higher when using low‐carbon credit financing, regardless of strict carbon emission conditions; (ii) low‐carbon credit can help remanufacturers withstand the impact of carbon price fluctuations; (iii) the demand uncertainty of new and remanufactured products has opposite effects on carbon emission reduction investment; (iv) increasing the carbon cap can enhance the remanufacturing level while a high carbon cap reduce incentives to remanufacture. [ABSTRACT FROM AUTHOR]

Based on the perspective of fiscal decentralization, the study focuses on 30 provinces in China and employs various econometric models including the threshold model, spatial econometric model, mediation model, and regulation model. The research findings indicate that fiscal decentralization has a double‐threshold effect on government intervention, market mechanisms, and regional carbon emission reduction. Both government intervention and market mechanisms have inhibiting effects on carbon emission, with significant coefficients of GOVI and MARM at the 1% level. The cooperation between government intervention and the market mechanism effectively limits carbon emissions. Government intervention facilitates regional carbon emission reduction through the construction of new infrastructures and energy structure transformation, yielding a significant intermediary effect. The market mechanism is positively regulated through green finance and technology innovation to promote regional carbon emission reduction. Moreover, government intervention enables the market to achieve carbon emission reduction more effectively, especially in areas with a higher degree of government intervention. Continuous improvement and upgrading of regional and national carbon markets are essential to attain the carbon peak and carbon neutrality goals. Furthermore, attracting more participants to these markets for emission control subjects is necessary to enhance the effectiveness of government–market coordination. [ABSTRACT FROM AUTHOR]

A supply chain with a manufacturer and a seller is studied in this paper for the impact of monetary and symbolic incentives on reducing carbon emissions. It is the responsibility of the manufacturer to invest in carbon emission abatement technologies and that of the seller to sell such products to consumers with green preferences. The study findings reveal that (1) both monetary and symbolic incentives can contribute to reducing carbon emissions but the choice between them depends on the trade‐off between the cost‐sharing ratio and the market interest rate; (2) implementing a hybrid policy could crowd‐out carbon emission effects; and (3) the manufacturer may maximize his profits under a hybrid policy, but the seller may struggle to cover his expenses, which could hinder effective collaboration within the supply chain. [ABSTRACT FROM AUTHOR]

This study takes a supply chain network composed of manufacturers, retailers and demand markets as the research object and analyses the impact of the government's carbon trading price (CTP), carbon tax (CT) and low-carbon product subsidy (LPS) policies on the supply chain network equilibrium. We determine the equilibrium state of members by using variational inequality and then construct a network equilibrium model that considers these three policies. A modified projection algorithm is used to verify and solve the model. The results show that a higher CTP helps to reduce carbon emissions but reduces the transaction quantity of products. Further, when the CTP increases, the system's profits increase only under the LPS policy. However, regardless of the CTP level implemented, if the CT rate is higher than the subsidy level, carbon emissions are lower. Notably, under the same levels of LPS and CT, LPS has a greater effect on the system. [ABSTRACT FROM AUTHOR]

We analyze the economic impact of using carbon pricing revenue to fund the European Union (EU) budget. Such a reform would redistribute from countries with above‐average carbon‐intensive production to less‐carbon‐intensive countries. Once the reform is implemented, the low‐carbon countries will prefer a lower carbon price (i.e., laxer climate policy at the EU level) than before the reform, and vice versa. As a result, EU climate policy becomes less ambitious and less disputed, where quantitative impacts presumably remain small. Weaker incentives for national governments to enforce emission taxes after revenue centralization might also contribute to higher emissions. [ABSTRACT FROM AUTHOR]

Related Articles Many countries are implementing carbon taxation to limit emissions, and this provides a new form of tax revenue. Studies have taken up the question of what forms of expenditure from carbon taxation receive public support and whether ‘revenue recycling’ can improve support for carbon taxation. However, public attitudes are ambiguous. We argue that some of the diverse findings partly reflect that previous studies have lacked the trade‐offs that come with expenditures and that we need to expand focus beyond what the average citizen wants. Therefore, we use an approach where members of the Danish public are asked how they would like to divide the total sum of carbon tax revenues between eight specific areas. We employ hierarchical cluster analysis, which shows a diverse field of groups. This reveals that, while generally popular, expenditures toward climate mitigation and adaptation need to be complemented by social spending to achieve broader support.Ike, Vivian. 2020. “The Impact of Veto Players on Incremental and Drastic Policy Making: Australia's Carbon Tax Policy and Its Repeal.” Politics & Policy 48(2): 232–64. https://doi.org/10.1111/polp.12346.Lachapelle, Erick, Thomas Bergeron, Richard Nadeau, Jean‐François Daoust, Ruth Dassonneville, and Éric Bélanger. 2021. “Citizens' Willingness to Support New Taxes for COVID‐19 Measures and the Role of Trust.” Politics & Policy 49(3): 534–65. https://doi.org/10.1111/polp.12404.Tuxhorn, Kim‐Lee, John D'Attoma, and Sven Steinmo. 2021. “Do Citizens Want Something for Nothing? Mass Attitudes and the Federal Budget.” Politics & Policy 49(3): 566–93. https://doi.org/10.1111/polp.12406. [ABSTRACT FROM AUTHOR]

This paper studies supply chain pricing and production/ordering decisions under carbon tax policy and retailer's stochastic demand. Firstly, a supply chain model with random demand obeying normal distribution is established. Based on this, a stochastic optimization problem with the goal of maximizing expected social welfare is constructed. The multi-agent consensus is used to solve the optimization problem, and the pricing and production/ordering decisions with random demand obeying normal distribution are obtained. Finally, the theoretical results are verified by numerical simulation, and the influence and effectiveness of multi-agent consensus theory on supply chain decision-making are demonstrated in the presence of random demand and sudden failure of an enterprise in the supply chain and further analyze the impact of carbon tax policy on supply chain decision-making. [ABSTRACT FROM AUTHOR]

Our ability to fight COVID-19 demonstrates that where there's a will, there's a way. Yet proactive action will not be the single driving force behind us winning a stable and benign environment for our children. This article focuses on the not so obvious yet impactful trends affecting our ability to stave off the worst of climate change. These trends include carbon taxation, climate litigation, AI, space exploration, Direct Air Capture and an ever younger, more motivated demographic. Some trends will affect our efforts in unknown and unpredictable ways, while others will drive them with ever more force over the years to come. Carbon taxation requires a proactive change in government policy, but that change will place implementation in the hands of the free market. As we face an existential crisis never before seen by humanity, perhaps the largest driving force affecting our ability to ensure a healthy planet will be a more engaged public. [ABSTRACT FROM AUTHOR]

Background: To curb human-made carbon-dioxide emissions, the European Union will introduce carbon pricing for buildings and transport in 2027. Central and East European (CEE) countries are pressured to embark on ambitious decarbonization pathways leading to carbon-neutral economies by 2050. This paper is the first to investigate the public acceptance of and the willingness to pay (WTP) for a carbon tax in a CEE country, Hungary. It analyzes the support-increasing effects of five revenue-recycling mechanisms (tax cuts, green spending, support for poor households, funding for health care and education, and debt reduction), a wider range than covered in previous studies. A national face-to-face survey of 3013 adults on public attitudes to climate change, conducted in summer 2022, is the main method of data collection. This is combined with secondary analysis of related statistics and documentary analysis of relevant materials. Results: The results show low public acceptance, with only a modest increase from 20.3% to 27.3% due to revenue recycling. This is accompanied by low WTP values and WTP increases. All these are lower than those found in Western surveys. A novel empirical result is the relative popularity of public health care and education in revenue recycling, though differences in revenue-recycling preferences are apparent between those who accept a carbon tax even without a redistribution mechanism and those who are willing to pay only if redistribution is included. Green spending also performed relatively well, while supporting the poor fared less well, albeit with relatively high WTP values. Reducing taxes and public debt were the least likely to instigate carbon-tax acceptance. Conclusions: The results highlight the importance of carefully assessing the distributional impact of implementing carbon pricing mechanisms and thoroughly integrating social considerations into climate policy. Based on this, as well as the analysis of the social conditions and political economy of climate policy development in Hungary, policies—such as a gradually increasing carbon tax, social cushioning, legal earmarking of carbon-tax revenues, and policy bundling—are proposed to make carbon pricing socially tolerable and politically acceptable. The findings and conclusions might also be relevant for other parts of the CEE region. [ABSTRACT FROM AUTHOR]

This article relies on the first and only representative survey data to estimate household carbon footprints (CFs) of China's large yet vastly understudied ethnic minority population, documenting for the first time significant ethnic disparities in CFs driven by ethnic minorities' relatively worse-off living standards: From 2010 to 2020, China's ethnic minority population contributed less than 6 percent of residential emissions, about 50 percent less than expected based on population share alone. Next, results from a counterfactual policy analysis find that the distributive effects of a carbon tax are regressive in urban areas but not in rural areas, increasing within and between ethnic group inequality in urban China. A carbon tax with revenue-neutral schemes, by contrast, helps to mitigate existing inequalities in society, reducing income- and ethnic-based forms of inequality. Results are robust to machine learning techniques employed to simulate potential heterogeneous household abatement scenarios. The findings emphasize the potential benefits of a carbon tax, contributing to a more comprehensive understanding of climate justice and informing policy decisions that promote equitable outcomes for vulnerable segments of society. [ABSTRACT FROM AUTHOR]

Given the consequences for the climate and human well-being, there is unquestionable universal fear about the ecological impact of socioeconomic activity. Therefore, this research aims to investigate the effects of carbon tax and resource efficiency on environmental sustainability while controlling economic growth and total energy supply in France between 1995 and 2020. As a result, the empirical findings would shed light on ecological sustainability in France and spark new debate. This study employs a novel Fourier autoregressive distributed lag cointegration method for cointegration and a nonlinear autoregressive distributed lag approach for long-run estimation. The empirical outcomes show that resource efficiency is negatively connected to environmental pollution. Moreover, the impact of a carbon tax on environmental pollution is negative. Lastly, energy use and economic growth positively influence environmental pollution. The study concludes that carbon taxes can help to achieve sustainable development goals and resource efficiency. [ABSTRACT FROM AUTHOR]

The relationship between environment and trade is gradually regaining prominence on the international scene, but this relationship is not a trivial one. The environment originated in international law initially in non-binding declarations, and treaties, producing effects for the signatory parties only. Today, it is discussed whether the environmental concern would also be evolving into a custom widely accepted by the international community. The World Trade Organization (WTO) rules allow environmental requirements to be used as exceptions to trade rules if they do not consist of arbitrary and discriminatory measures. However, these exceptions are not always clear, and may camouflage protectionist measures, raising questions, especially now with many trade initiatives under discussion in the European Union (EU), such as the recent restrictions on products from deforestation, carbon taxes for imported products and anti-green washing methods. The WTO dispute body has ways of interpreting trade agreements, considering trade treaties, as well as other sources of international law, including customs. Additionally, the International Court of Justice (ICJ) has a central role in approaching these pressing new issues. Therefore, the evolution of environmental principles into a custom of international law is key and can help to incorporate the environment into the commercial agenda, which is gaining increasing momentum. The purpose of this study is to analyse the relationship between how environmental issues are addressed in the WTO, and how the environment is evolving from a range of non-binding principles to a custom widely accepted by the international community [ABSTRACT FROM AUTHOR]

This paper examines the asymmetric link between carbon pricing and the comparative advantage in environmental goods exports in South Africa from 1995 to 2021. The non‐linear autoregressive distributed lag model is utilized to investigate the effects of both minor and major positive and negative fluctuations in carbon taxes, technological innovation, and energy transition on comparative advantage. The results reveal that carbon taxes have an asymmetric effect on comparative advantage in both the short and long runs, with positive shocks exerting a greater beneficial influence than negative shocks. Specifically, it is found that a 1% reduction in carbon taxes corresponds to a 1.24% decline in the response variable, whereas a 1% increase in carbon taxes is associated with a 2.72% increase in comparative advantage in environmental goods exports, which is twice as large. The study also uncovers evidence of an asymmetric relationship between low‐carbon technological innovation and comparative advantage in environmental goods exports. However, strong evidence of a long‐run asymmetric linkage between the energy transition and comparative advantage is not established. Nevertheless, it is noteworthy that a positive shift in energy transition is linked with a 0.32% rise in comparative advantage in environmental goods exports, whereas a negative shift in energy transition corresponds to a 0.11% decrease. The practical policy implications are also discussed. [ABSTRACT FROM AUTHOR]

The article is an obituary for economist Robert Solow, highlighting his influential work on economic growth and the development of the Solow growth model. It discusses his approach to economics, which emphasized the use of simple mathematical models tailored to specific problems and taking into account all available evidence. The article also mentions Solow's contributions to the rise of modeling in economics and his work on the rate of technological progress. Solow believed in using plausible models aligned with observations and criticized simplistic assumptions in economic models. He emphasized the importance of challenging nonsense and holding out against misleading theories in economics. [Extracted from the article]

This article is a response to criticisms raised by Kian Mintz-Woo regarding carbon offsets. The author disagrees with Mintz-Woo's arguments and focuses on three main areas of disagreement: factual claims about offsets, justice in determining baseline actions, and individual moral responsibility in addressing climate change. The author defends the use of carbon offsets and emphasizes the need for further research on effective individual actions. The article also provides a list of academic publications by Luke Elson, an Associate Professor of Philosophy at the University of Reading, whose research interests include rational choice theory and ethics. [Extracted from the article]

Carbon emissions can be decreased by adopting the carbon cap-and-alternate policy. The current study suggests a carbon buying and selling mechanism for things that are deteriorating or of poor quality while taking into account chilled logistics services in a fresh food supply chain. In addition to deliveries of perishables, suppliers also provide retailers with chilled logistics services and carbon emission certificates for excess inventory. The retail price, the cost of chilled strategies, and the contributions to various carbon trading options--such as internal carbon trade, external carbon exchange, and carbon exchange both internally and externally for the destruction of low-quality goods have all been evaluated in this paper. The store network members give estimating systems to new food, emanation permits and refrigerated planned operations administrations. We likewise uncover the connection between carbon purchasing and advancing and refrigerated strategies administrations and test out their joint effect on the provider retailer's helpful dating. Store network donors are also encouraged to participate in the carbon exchanging mechanism, which benefits from more sophisticated asset utilisation and more ruthless stockpile chains. The numerical examples have helped to validate the results. In the end, a thorough sensitivity analysis has been provided. [ABSTRACT FROM AUTHOR]

The financial industry is transforming due to the confluence of digital finance and green investments, which brings unprecedented potential and problems. This study rigorously examines the consequences of implementing carbon taxes on financial reporting in the corporate sectors of the European Union from 2000 to 2020. We utilize a comprehensive econometric model that includes stable variables, past patterns, and industry-specific differences to examine a dataset of business financial disclosures. Our goal is to determine the magnitude and characteristics of the impact caused by carbon taxes on reporting practices. This presentation highlights the possibilities for speeding up the world's energy transitions as it examines the synergies between sustainable investments and digital finance. The financial industry's growing use of digital technology makes green financing and ecologically responsible investments possible. However, there are also hazards associated with this convergence, which makes a thorough grasp of regulatory structures necessary. [ABSTRACT FROM AUTHOR]