ARTICLE
TITLE

Optimal decisions on pricing and greening policies of multiple manufacturers under governmental regulations on greening and carbon emission

Manoranjan De    
Bibhas Chandra Giri    

SUMMARY

This paper is determines the optimal decisions on pricing and greening strategies of substitutable products which are manufactured by duopoly competitor firms in a consumer sensitive market where a consumer can choose a particular product by its retail price and greening level. The firms simultaneously produce these substitute products under carbon emission regulations enacted by government administration. Government’s carbon emission regulation like carbon tax or cap and trade may not be enough to direct optimization of social greening welfare but may force to mandate the firms to satisfy a standard greening level to handle it. A penalty or subsidy is levied per unit difference in greening standards as well as with the cape and trade regulation on carbon emission. The, contesting firm managers face the problem of fixing the conflicts on carbon penalty and greening investment to decide the optimum policies. For numerical examples, the optimal decisions of the firm managers are obtained by maximizing the profit following government’s mandatory regulations. Some managerial insights are outlined and sensitivity analyses on key parameters of the model are graphically presented.

 Articles related

Ana C. Dias,Luís Arroja    

Aim of study: This study aims to develop a calculation model for estimating carbon accumulation in cork products, both whilst in use and when in landfills, and to apply the model to Portugal as an example.Area of study: The model is applicable worldwide ... see more

Revista: Forest Systems

Peter Grimes,Jeffrey Kentor    

This research examines the impact of foreign investment dependence on carbon dioxide emissions between 1980 and 1996. In a cross-national panel regression analysis of 66 less developed countries, we find that foreign capital penetration in 1980 has a sig... see more


Genoveva G. Canals-Revilla,Enrique V. Gutierrez-del Olmo,Juan Picos-Martin,Roberto Voces-Gonzalez    

Aim of study: The study quantifies carbon stock in particleboard and fibreboard, for the period 1990-2006. It is the first accounting made for the Spanish wood industry using industrial accurate data and it could be comparable to other European studies.A... see more

Revista: Forest Systems

ANUP KRISHNA GUPTA, Ajoy Kumar Dutta    

Coal is a major source of energy. It has stimulated India's industrialization and is being used to produce thermal electricity (around 70%) and in the manufacturing industries like textile, steel, chemicals, fertilizers, etc. The increased trend of coal ... see more