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Carbon tax policy analysis based on distribution channel strategy

This paper establishes a theoretical model to study the carbon tax policy based on a firm’s different distribution channel strategy. First, we examine the firm’s optimal distribution channel strategies in the absence of government policy intervention. Then, on the assumption that the firm is owned b...

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Bibliographic Details
Published in:Environmental science and pollution research international 2022-04, Vol.29 (18), p.26385-26395
Main Author: Li, Xuzhao
Format: Article
Language:English
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Summary:This paper establishes a theoretical model to study the carbon tax policy based on a firm’s different distribution channel strategy. First, we examine the firm’s optimal distribution channel strategies in the absence of government policy intervention. Then, on the assumption that the firm is owned by the society as a whole and taking into account the environmental impact of the firm’s decisions, we describe the product distribution strategy that optimizes social welfare. Through the comparison of the above two situations, we find that without the intervention of government policies, the firm’s decision may deviate from the decision that optimizes social welfare. Finally, on the basis of the analysis, we propose a carbon tax policy for retailers in distribution channels under different firm distribution strategies. We hope that with the intervention of carbon tax policy, firm decisions can achieve optimal social welfare.
ISSN:0944-1344
1614-7499
DOI:10.1007/s11356-021-17855-y