| dc.description.abstract | In recent years, organizations has established environment protection conferences to mitigate the impacts of climate change brought by natural disasters and propose specific approaches to make improvements. Taiwan’s Legislative Yuan recently passed the “Greenhouse Gas Reduction Law” in addition to the “Greenhouse Gas Reduction and Management Act” which imposed emission reduction and price changes. By implementing these regulations, the country’s greenhouse gas emission is expected to drop 50% in 2050, which is twice lower than in 2005. Carbon policies such as carbon tax and cap and trade can be considered to reduce emissions, and also enhance the said protocols.
This research focuses on the bicycle industry of Taiwan. Considering production capacity, material costs, and carbon dioxide emission restrictions, this study firstly uses mathematical programming to construct an appropriate model in respect with carbon tax, and cap and trade policies. The data used in this study is then subjected to sensitivity analysis to evaluate the effects of carbon tax and emission parameters to the total cost and selection of component suppliers. Under the carbon tax policy, results show that a low carbon tax cannot effectively reduce the carbon emission cost. Setting a high carbon tax, even though with limited emission cost, can still lead to a substantial increase in operating costs. In the case of cap and trade policy, the total controlled amount of emission with varied transaction prices can generate differences in costs. The model constructed in this study can help companies choose the best component supplier combinations while minimizing costs incurred in the supply chain. More importantly, organizations can comply with the current regulations and social responsibilities in the manufacturing process of bicycles simultaneously.
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