Mix and Single Carbon Policy Evaluations for Cost-Effectiveness of GHG Reduction in Global Supply Chain Network

To reduce Greenhouse Gas (GHG) emissions in the global supply chain, various carbon policies such as carbon tax and carbon cap-and-trade have been introduced in many countries. By applying a mix policy, there is a possibility that GHG emissions can be reduced more effectively than applying a single policy. Furthermore, it is also necessary to consider tariffs and FTAs for constructing a global supply chain. This study models a global supply chain with mix and single carbon policies, and analyzes the GHG emissions and costs in the supply chain under different carbon prices in carbon tax and carbon cap-and-trade. It was found cases that the mix carbon policy could reduce much GHG emissions with less actual carbon price than carbon prices in single policies.