The Multi-Period Dynamic Optimization with Carbon Emissions Reduction under Cap-and-Trade

The Multi-Period Dynamic Optimization with Carbon Emissions Reduction under Cap-and-Trade

Under low carbon environment, a multi-period emissions reduction problem for manufacturer is investigated in the paper, where we assume that the government sets mandatory carbon emissions limit to all the enterprises by free of charge and allows the carbon emission quota to be traded or banked inter...

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Main Authors: Baiyun Yuan, Bingmei Gu, Chunming Xu
Format: Article
Language:English
Published: Hindawi Limited 2019-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2019/6987132
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spelling doaj-297a32d002f24eb9af691c01b5ce83532020-11-25T02:37:28ZengHindawi LimitedDiscrete Dynamics in Nature and Society1026-02261607-887X2019-01-01201910.1155/2019/69871326987132The Multi-Period Dynamic Optimization with Carbon Emissions Reduction under Cap-and-TradeBaiyun Yuan0Bingmei Gu1Chunming Xu2Research Center of Energy Economy, School of Business Administration, Henan Polytechnic University, Jiaozuo 454000, ChinaSchool of Management, Shanghai University, Shanghai 200444, ChinaDepartment of Mathematics, College of Science, Tianjin University of Technology, Tianjin 300384, ChinaUnder low carbon environment, a multi-period emissions reduction problem for manufacturer is investigated in the paper, where we assume that the government sets mandatory carbon emissions limit to all the enterprises by free of charge and allows the carbon emission quota to be traded or banked inter-temporally in the carbon trading market. Using discrete-time optimal control theory, the optimal emission reduction strategies for each period are firstly explored for maximizing the sum of net profit under cap-and-trade. The optimal carbon emissions, permit trading quantity, and the number of buying Certified Emission Reduction (CER) are obtained in each period. Furthermore, the effects of carbon price and initial carbon quota given by the government on the firm’s emission reduction strategies are discussed. Finally, numerical examples are illustrated to verify the proposed model, and some managerial inferences for a multi-period emission reduction are provided in conclusions.http://dx.doi.org/10.1155/2019/6987132
collection DOAJ
language English
format Article
sources DOAJ
author Baiyun Yuan
Bingmei Gu
Chunming Xu
spellingShingle Baiyun Yuan
Bingmei Gu
Chunming Xu
The Multi-Period Dynamic Optimization with Carbon Emissions Reduction under Cap-and-Trade
Discrete Dynamics in Nature and Society
author_facet Baiyun Yuan
Bingmei Gu
Chunming Xu
author_sort Baiyun Yuan
title The Multi-Period Dynamic Optimization with Carbon Emissions Reduction under Cap-and-Trade
title_short The Multi-Period Dynamic Optimization with Carbon Emissions Reduction under Cap-and-Trade
title_full The Multi-Period Dynamic Optimization with Carbon Emissions Reduction under Cap-and-Trade
title_fullStr The Multi-Period Dynamic Optimization with Carbon Emissions Reduction under Cap-and-Trade
title_full_unstemmed The Multi-Period Dynamic Optimization with Carbon Emissions Reduction under Cap-and-Trade
title_sort multi-period dynamic optimization with carbon emissions reduction under cap-and-trade
publisher Hindawi Limited
series Discrete Dynamics in Nature and Society
issn 1026-0226
1607-887X
publishDate 2019-01-01
description Under low carbon environment, a multi-period emissions reduction problem for manufacturer is investigated in the paper, where we assume that the government sets mandatory carbon emissions limit to all the enterprises by free of charge and allows the carbon emission quota to be traded or banked inter-temporally in the carbon trading market. Using discrete-time optimal control theory, the optimal emission reduction strategies for each period are firstly explored for maximizing the sum of net profit under cap-and-trade. The optimal carbon emissions, permit trading quantity, and the number of buying Certified Emission Reduction (CER) are obtained in each period. Furthermore, the effects of carbon price and initial carbon quota given by the government on the firm’s emission reduction strategies are discussed. Finally, numerical examples are illustrated to verify the proposed model, and some managerial inferences for a multi-period emission reduction are provided in conclusions.
url http://dx.doi.org/10.1155/2019/6987132
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AT chunmingxu themultiperioddynamicoptimizationwithcarbonemissionsreductionundercapandtrade
AT baiyunyuan multiperioddynamicoptimizationwithcarbonemissionsreductionundercapandtrade
AT bingmeigu multiperioddynamicoptimizationwithcarbonemissionsreductionundercapandtrade
AT chunmingxu multiperioddynamicoptimizationwithcarbonemissionsreductionundercapandtrade
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