Optimisation of an Enterprise's Production Technology Upgrade Strategy under a Carbon Tax: Pay the Tax or an Upgrade Fee?

Senyu He; Zhaohua Wang

doi:10.1016/j.egypro.2017.03.832

Optimisation of an Enterprise's Production Technology Upgrade Strategy under a Carbon Tax: Pay the Tax or an Upgrade Fee?

Senyu He, Zhaohua Wang^*

^*Corresponding author for this work

Beijing Institute of Technology

Research output: Contribution to journal › Conference article › peer-review

2 Citations (Scopus)

Abstract

Carbon tax is one of the important policy levers used to reduce CO₂ emissions. When an enterprise is subject to a carbon tax, it has to balance the trade-off between the 'long-term tax fee' and the 'short-term upgrade fee'. In this research, we explore how to optimise an enterprise's production technology upgrade strategy based on existing low-carbon technologies, to minimise the total upgrade cost subject to an expected total cost per product. We propose an integer programming model to formulate the problem, and present a 'multi-agent system - genetic algorithm' (MAS-GA) method for its solution. The model is applied to a numerical example and the results indicate that the MAS-GA method is feasible.

Original language	English
Pages (from-to)	3984-3989
Number of pages	6
Journal	Energy Procedia
Volume	105
DOIs	https://doi.org/10.1016/j.egypro.2017.03.832
Publication status	Published - 2017
Event	8th International Conference on Applied Energy, ICAE 2016 - Beijing, China Duration: 8 Oct 2016 → 11 Oct 2016

Keywords

Carbon Tax
Genetic Algorithm
Multi-agent System
Production Technology Upgrade
Strategy Optimisation

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10.1016/j.egypro.2017.03.832

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title = "Optimisation of an Enterprise's Production Technology Upgrade Strategy under a Carbon Tax: Pay the Tax or an Upgrade Fee?",

abstract = "Carbon tax is one of the important policy levers used to reduce CO2 emissions. When an enterprise is subject to a carbon tax, it has to balance the trade-off between the 'long-term tax fee' and the 'short-term upgrade fee'. In this research, we explore how to optimise an enterprise's production technology upgrade strategy based on existing low-carbon technologies, to minimise the total upgrade cost subject to an expected total cost per product. We propose an integer programming model to formulate the problem, and present a 'multi-agent system - genetic algorithm' (MAS-GA) method for its solution. The model is applied to a numerical example and the results indicate that the MAS-GA method is feasible.",

keywords = "Carbon Tax, Genetic Algorithm, Multi-agent System, Production Technology Upgrade, Strategy Optimisation",

author = "Senyu He and Zhaohua Wang",

note = "Publisher Copyright: {\textcopyright} 2017 Published by Elsevier Ltd.; 8th International Conference on Applied Energy, ICAE 2016 ; Conference date: 08-10-2016 Through 11-10-2016",

year = "2017",

doi = "10.1016/j.egypro.2017.03.832",

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T1 - Optimisation of an Enterprise's Production Technology Upgrade Strategy under a Carbon Tax

T2 - 8th International Conference on Applied Energy, ICAE 2016

AU - He, Senyu

AU - Wang, Zhaohua

PY - 2017

Y1 - 2017

N2 - Carbon tax is one of the important policy levers used to reduce CO2 emissions. When an enterprise is subject to a carbon tax, it has to balance the trade-off between the 'long-term tax fee' and the 'short-term upgrade fee'. In this research, we explore how to optimise an enterprise's production technology upgrade strategy based on existing low-carbon technologies, to minimise the total upgrade cost subject to an expected total cost per product. We propose an integer programming model to formulate the problem, and present a 'multi-agent system - genetic algorithm' (MAS-GA) method for its solution. The model is applied to a numerical example and the results indicate that the MAS-GA method is feasible.

AB - Carbon tax is one of the important policy levers used to reduce CO2 emissions. When an enterprise is subject to a carbon tax, it has to balance the trade-off between the 'long-term tax fee' and the 'short-term upgrade fee'. In this research, we explore how to optimise an enterprise's production technology upgrade strategy based on existing low-carbon technologies, to minimise the total upgrade cost subject to an expected total cost per product. We propose an integer programming model to formulate the problem, and present a 'multi-agent system - genetic algorithm' (MAS-GA) method for its solution. The model is applied to a numerical example and the results indicate that the MAS-GA method is feasible.

KW - Carbon Tax

KW - Genetic Algorithm

KW - Multi-agent System

KW - Production Technology Upgrade

KW - Strategy Optimisation

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DO - 10.1016/j.egypro.2017.03.832

M3 - Conference article

AN - SCOPUS:85020749930

SN - 1876-6102

VL - 105

SP - 3984

EP - 3989

JO - Energy Procedia

JF - Energy Procedia

Y2 - 8 October 2016 through 11 October 2016

ER -

Optimisation of an Enterprise's Production Technology Upgrade Strategy under a Carbon Tax: Pay the Tax or an Upgrade Fee?

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