Highlights The effect of carbon tariffs on global carbon emission control is examined. Two specific strategic responses of supply chain managers are explicitly considered. Charging a carbon tariff does not necessarily reduce global emissions. Managerial implications for policymaking are presented via a numerical study.
Abstract This paper investigates the effect of carbon tariffs on global emission control. We propose a global supply chain model consisting of a retailer in an emission-regulated country and supplier in a non-emission-regulated country. The equilibrium solutions are obtained, and the effects of a carbon tariff on global emission control are studied. Through analytical study and numerical study, we find that a carbon tariff does not necessarily reduce global emissions under certain circumstances. The paper discusses insights and the carbon tariff policy implications from this finding.
The effect of carbon tariffs on global emission control: A global supply chain model
2019-11-26
Article (Journal)
Electronic Resource
English
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