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631. Should the Governments Charge a Carbon Tax from Servitizing Firms?
Invited abstract in session TD-24: Sustainable Food and Health Care Logistics, stream Sustainable Supply Chains.
Tuesday, 14:30-16:00Room: 83 (building: 116)
Authors (first author is the speaker)
| 1. | Mehmet Alegoz
|
| Industrial Engineering, Eskisehir Technical University |
Abstract
Carbon tax is one of the widely used emission policies to encourage companies to decrease their emissions. Although numerous attempts have been made to investigate the effects of a carbon tax policy on the traditional selling business model, the effects of this policy on the servitization business model, in which the firms sell the use or the outcome of a product, remain as an important research gap. Motivated by this fact, this study proposes Stackelberg Game models to investigate the economic, environmental, and social effects of a carbon tax policy on the servitizing firms. Equilibrium results reveal that carbon tax yields an increase in the usage fee, and thus aggregate usage in the market decreases as a result of working under a carbon tax policy. This decrease in aggregate usage, on the one hand, yields a decrease in the environmental impact, and on the other hand, deteriorates the servitizing firm’s profit.
Keywords
- Supply Chain Management
- OR in Sustainability
- Game Theory
Status: accepted
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