The Impacts of Regulations and Financial Development on the Operations of Supply Chains with Greenhouse Gas Emissions

International Journal of Environmental Research and Public Health
Zhuang XiaoZheng Yuan

Abstract

To establish a micro foundation to understand the impacts of greenhouse gas (GHG) emission regulations and financial development levels on firms' GHG emissions, we build a two-stage dynamic game model to incorporate GHG emission regulations (in terms of an emission tax) and financial development (represented by the corresponding financing cost) into a two-echelon supply chain. With the subgame perfect equilibrium, we identify the conditions to determine whether an emission regulatory policy and/or financial development can affect GHG emissions in the supply chain. We also reveal the impacts of the strictness of GHG emission regulation, the financial development level, and the unit GHG emission rate on the operations of the supply chain and the corresponding profitability implications. Managerial insights are also discussed.

References

Jun 26, 2017·Journal of Environmental Management·Wagner Cezar LucatoGeraldo Cardoso de Oliveira Neto

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Citations

May 31, 2018·International Journal of Environmental Research and Public Health·Ning ZhangYuhong Wang
Sep 29, 2019·Environmental Geochemistry and Health·Huaping SunYasir Ahmed Solangi

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