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3330. On Carbon Tax Effectiveness in Inducing a Clean Technology Transition: An Evaluation Based on Optimal Strategic Capacity Planning
Invited abstract in session WD-53: Carbon Taxing and Emissions Controls, stream Sustainable and Resilient Systems.
Wednesday, 14:30-16:00Room: 8007 (building: 202)
Authors (first author is the speaker)
| 1. | Jorge Weston
|
| Friedrich-Alexander-Universtät Erlangen-Nürnberg |
Abstract
In this work we study how carbon tax induces a transition to cleaner production under different types of technologies and different demands over a planning horizon. To determine the effectiveness of carbon tax we propose a model based on strategic capacity production planning under carbon taxes. We also present different performance measures to quantify the effectiveness of carbon taxes. The model used is formulated as a mixed integer linear problem (MILP) and consider elements that previous works have not jointly studied, such as machine replacement, workforce planning, and maintenance; elements that are relevant when studying the technological transition. The effectiveness measures proposed in this works, consider levels of clean production and periods to reach a full technological transition. Our computational experiments, based on a real case, have shown that in the absence of carbon taxes, a firm has no incentive to transition to clean technology. Still, the effectiveness of carbon taxes depends on the characteristics of the technology available for the production process and the magnitude of the demand. Finally, we present managerial insights aimed at both companies and the environmental authority to help the planning for a transition to clean technology.
Keywords
- OR in Sustainability
- Capacity Planning
- Strategic Planning and Management
Status: accepted
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