Abstract
Carbon reduction has become a hot issue in academic and business circles. Carbon tax is one of the effective ways to cut carbon emissions and has been adopted by many countries. The paper examines the pricing and green technology investment of a two echelon supply chain consisting of two suppliers and a prefabricated building assembler. We investigate three models, i.e. the centralized model, tax on assembler model and tax on supplier model. We derive the optimal retail price, wholesale price and green technology investment of different models. We show that the suppliers invest less in green technology for carbon reduction in decentralized model. We also show that no matter which member of the prefabricated building supply chain is taxed, the optimal price and unit carbon emissions are unchanged and the wholesale price can play a regulatory role to keep the supply chains profit and its allocation unchanged when the tax object is changed.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Cachon GP (2004) The allocation of inventory risk in a supply chain: push, pull, and advance-purchase discount contracts. Manag Sci
Chen JH, Yang LR, Tai HW (2016) Process reengineering and improvement for building precast production. Autom Constr 68:249–258
Chen X, Hao G (2015) Sustainable pricing and production policies for two competing firms with carbon emissions tax. Intl J Prod Res 53(21):6408–6420
Chery H, Jeff J, Kemsley J (2014) Global-warming warnings. Chem Eng News 91(3):4–4
Hong J, Shen GQ et al (2015) Greenhouse gas emissions during the construction phase of a building: a case study in china. J Clean Prod 103:249–259
Hong J, Shen GQ et al (2016) Life-cycle energy analysis of prefabricated building components: an inputcoutput-based hybrid model. J Clean Prod 112:2198–2207
Jiang W (2017) Pricing and greening policy for manufacturer with low carbon strategic customers. In: Proceedings of the 11th international conference on management science and engineering management
Li CZ, Hong J et al (2016) Schedule risks in prefabrication housing production in hong kong: a social network analysis. J Clean Prod 134:482–494
Liang QM, Wang T, Xue MM (2016) Addressing the competitiveness effects of taxing carbon in china: domestic tax cuts versus border tax adjustments. J Clean Prod 112
Ma X, Ji P et al (2018) Optimal procurement decision with a carbon tax for the manufacturing industry. Comput Oper Res 89:360–368
Mao C, Shen Q et al (2013) Comparative study of greenhouse gas emissions between off-site prefabrication and conventional construction methods: two case studies of residential projects. Energy Build 66(5):165–176
Parry ML, Canziani OF et al (2007) IPCC fourth assessment report: climate change 2007 (ar4). Technical report, IPCC
Wang Z, Hu H, Gong J (2018) Framework for modeling operational uncertainty to optimize offsite production scheduling of precast components. Autom Constr 86:69–80
Acknowledgements
This research is partially supported by National Natural Science Foundation of China (No. 71602134) and Research project of Education Department of Sichuan Province (No. 17ZB0335).
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer International Publishing AG, part of Springer Nature
About this paper
Cite this paper
Li, J., Yuan, L., Jiang, W. (2019). Pricing and Green Technology Investment of Prefabricated Building Supply Chain with Carbon Tax. In: Xu, J., Cooke, F., Gen, M., Ahmed, S. (eds) Proceedings of the Twelfth International Conference on Management Science and Engineering Management. ICMSEM 2018. Lecture Notes on Multidisciplinary Industrial Engineering. Springer, Cham. https://doi.org/10.1007/978-3-319-93351-1_112
Download citation
DOI: https://doi.org/10.1007/978-3-319-93351-1_112
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-93350-4
Online ISBN: 978-3-319-93351-1
eBook Packages: Intelligent Technologies and RoboticsIntelligent Technologies and Robotics (R0)