Optimal production, fuel economy investment and credit trading decisions under dual-credit policy

IF 6.7 2区管理学 Q1 MANAGEMENT

Omega-international Journal of Management Science Pub Date : 2025-07-10 DOI:10.1016/j.omega.2025.103375

Zhenxiao Wang , Fen Xu , Li Xiao , Peng Yang

{"title":"Optimal production, fuel economy investment and credit trading decisions under dual-credit policy","authors":"Zhenxiao Wang , Fen Xu , Li Xiao , Peng Yang","doi":"10.1016/j.omega.2025.103375","DOIUrl":null,"url":null,"abstract":"<div><div>We study a production system that produces FVs and NEVs during one selling season under the dual-credit policy (DCP), which is issued to reduce the greenhouse emissions generated from production. One specific feature of our model is that production generates two credits, either positive or negative, and DCP requires nonnegative credits at the end of the selling season and penalizes the negative credits. We show that the optimal production, fuel economy investment, and credit trading decisions depend on the initial capability of generating credits. Based on the optimal decisions, we find that DCP promotes the production of automakers who sell credits and reduces the production of automakers who purchase credits. We next discuss various factors affecting the optimal decisions and the effectiveness of DCP. In particular, a high initial capability to generate positive credits induces a high profit and large production quantity. A high credit purchasing price induces a low profit and a small credit trading volume. However, the optimal fuel economy decision and the credit trading decision are non-monotone in the initial capability to generate credits, and the production quantity and the fuel economy investment are non-monotone in the credit purchasing price.</div></div>","PeriodicalId":19529,"journal":{"name":"Omega-international Journal of Management Science","volume":"138 ","pages":"Article 103375"},"PeriodicalIF":6.7000,"publicationDate":"2025-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Omega-international Journal of Management Science","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S030504832500101X","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"MANAGEMENT","Score":null,"Total":0}

引用次数: 0

Abstract

We study a production system that produces FVs and NEVs during one selling season under the dual-credit policy (DCP), which is issued to reduce the greenhouse emissions generated from production. One specific feature of our model is that production generates two credits, either positive or negative, and DCP requires nonnegative credits at the end of the selling season and penalizes the negative credits. We show that the optimal production, fuel economy investment, and credit trading decisions depend on the initial capability of generating credits. Based on the optimal decisions, we find that DCP promotes the production of automakers who sell credits and reduces the production of automakers who purchase credits. We next discuss various factors affecting the optimal decisions and the effectiveness of DCP. In particular, a high initial capability to generate positive credits induces a high profit and large production quantity. A high credit purchasing price induces a low profit and a small credit trading volume. However, the optimal fuel economy decision and the credit trading decision are non-monotone in the initial capability to generate credits, and the production quantity and the fuel economy investment are non-monotone in the credit purchasing price.

查看原文本刊更多论文

双信用政策下的最优生产、燃油经济性投资和信用交易决策

我们研究了在双重信用政策（DCP）下，在一个销售季节生产fv和新能源汽车的生产系统，该政策旨在减少生产过程中产生的温室气体排放。我们模型的一个具体特征是，生产产生两种积分，要么是正积分，要么是负积分，DCP要求在销售季节结束时获得非负积分，并惩罚负积分。我们证明了最优的生产、燃油经济性投资和信用交易决策取决于产生信用的初始能力。基于最优决策，我们发现DCP促进了销售信用的汽车制造商的生产，减少了购买信用的汽车制造商的生产。接下来，我们将讨论影响DCP最优决策和有效性的各种因素。特别是，产生正信贷的高初始能力会导致高利润和大量生产。信用购买价格高，利润低，信用交易量小。而最优燃油经济性决策和信用交易决策在初始信用生成能力上是非单调的，生产数量和燃油经济性投资在信用购买价格上是非单调的。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Omega-international Journal of Management Science 管理科学-运筹学与管理科学

CiteScore

13.80

自引率

11.60%

发文量

130

审稿时长

56 days

期刊介绍： Omega reports on developments in management, including the latest research results and applications. Original contributions and review articles describe the state of the art in specific fields or functions of management, while there are shorter critical assessments of particular management techniques. Other features of the journal are the "Memoranda" section for short communications and "Feedback", a correspondence column. Omega is both stimulating reading and an important source for practising managers, specialists in management services, operational research workers and management scientists, management consultants, academics, students and research personnel throughout the world. The material published is of high quality and relevance, written in a manner which makes it accessible to all of this wide-ranging readership. Preference will be given to papers with implications to the practice of management. Submissions of purely theoretical papers are discouraged. The review of material for publication in the journal reflects this aim.