Yin, Xing; Chen, Xiaolin; Xu, Xiaolin; Zhang, Lianmin. "Tax or Subsidy? Optimal Carbon Emission Policy: A Supply Chain Perspective". Sustainability. (1582070400)February 19, 2020. https://www.mdpi.com/...

Governments should adopt a supply chain tax policy where the cost of greening or subsidizing the negative impact of carbon emission is high.  While firms decide on the greenness level of the product, governments decide on the adoption of a supply chain tax policy (taxation or subsidy) to maximize the welfare of society and protect the ecological environment.  With the requirement for socio-economic and environmental protection, governments need to enact appropriate policies to induce firms to adopt green technology to realize the rapidly increasing public demand for sustainable development.

Posted on 24/03/21

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