SUNConferences, Computers and Industrial Engineering 42

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A Contrastive Analysis Of Different Carbon Policies In A Multi-Plant Location Problem
Zhao Qiuhong, Chen Zhen, Zheng Haitao

Last modified: 2012-06-25


This paper addresses a multi-plant location problem, and compares the carbon policies issued by the government with that of joint implementation of the government-issued carbon policies and the market adjustment based carbon policy (carbon trade), where the government-issued carbon policies include carbon tax, as well as command-and-control regulation. A mixed-integer mathematical model is set up, followed by the numerical studies. It is shown by sensitive analysis that, the concurrent implementation of both the government-issued carbon policy and the market adjustment based policy outperforms merely government-issued carbon policies or merely market adjustment based policy , since it benefits not only the enterprises in terms of cost minimization; it also benefits the government since the carbon emission quantity can be minimized.

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