An Optimal Pricing Strategy of Manufacturer by Considering Mandatory Carbon Emission Capacity and Consumer Environmental Protection Preference
Date Issued
2016
Date
2016
Author(s)
Huang, Shih-Hao
Abstract
Humans gradually gain environmental awareness due to excessive consumption of resources on earth. Therefore, green supply chain has been receiving increasing attention in recent years, governments from all around the world start to formulate carbon tax to suppress carbon emissions from human beings. Due to carbon tax, enterprises have to figure out how to maximize their profits and cover the carbon tax costs. This study investigates the optimal pricing policy of a manufacturer under mandatory carbon emissions capacity in the green supply chain. Moreover, this study considers the situation that customers have environmental awareness specifically under mandatory carbon emission capacity, which influence their purchasing decisions. The result shows that, first, when carbon emission limit become looser, manufacturer can maximize the profit by lowering large amount of manufactured product price, and small amount of new product price. Second, higher unit carbon emission cost lead to higher pricing strategy to lower the demand quantity and carbon emission quantity. Third, when the carbon emission limit becomes tighter, and unit carbon emission cost becomes higher, manufacturer can increase new product price and increase relatively less remanufactured price to make remanufactured product replace new product to sustain the profit effectively. Moreover, to cope with higher unit carbon emission cost, manufacturer should increase more remanufactured product price to suppress demand quantity, and lead to lower carbon emission quantity.
Subjects
Green supply chain
Mandatory carbon emission capacity
Pricing policy
Remanufactured product
Type
thesis