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Abstract

Reducing carbon emissions is an important issue in the global supply chain. Governments have formulated different carbon policies to achieve carbon neutrality or emission reduction, in particular, the carbon tax as a policy provides greater certainty about the potential cost to emitters. The Taiwan government is expected to implement the carbon tax policy in 2024 and does not rule out the inclusion of a progressive mechanism which is more effective than a single carbon tax in curbing high carbon emissions Recent studies have also confirmed that a high level and complete carbon tax could encourage companies to invest in green technologies, which can reduce emissions while reducing internalization costs. In addition, scholars have proposed that the transportation process has a significant impact on carbon emissions. Therefore, in this paper, we combine with the EOQ model of the integrated supply chain under the pro[1]gressive carbon tax, transportation cost, and green technology investment, the proposed model can help decision makers determine the optimal order quantity and green technology investment costs to minimize total costs and carbon emissions. It is also for the government to the trade-off between the carbon tax system and economic activities. Finally, numerical results are discussed to provide managerial insights.

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