Inventory Model On The Effect Of Investment In Green Technology Under Cap And Trade Policy

Document Type : Primary Research paper


Department of Mathematics, Holy Cross College (Autonomous), Affiliated to Bharathidasan University, Tiruchirappalli-620002, India.


This study investigates the effect of carbon policy and green technology in the inventory model with consideration of carbon emissions from the process of product production, setup, transportation, storage and recycle. The purpose of this study can assist firms in determining their corresponding optimal order quantity and green investment amount with an aim of minimizing the costs under carbon cap and trade policy. Also, this study provides practical implications for the government to make appropriate policies and regulations in balancing the trade-off between environmental protection and economic growth. The results indicate the firms adopting the carbon tax policy would prefer to invest in a relatively efficient green technology. Finally, the formulated model explained with numerical example.