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ORIGINAL RESEARCH article

Front. Environ. Sci.
Sec. Environmental Economics and Management
Volume 12 - 2024 | doi: 10.3389/fenvs.2024.1488448
This article is part of the Research Topic Advancing Carbon Reduction and Pollution Control Policies Management: Theoretical, Application, and Future Impacts View all 14 articles

Optimal joint production and green investment decisions of green credit financing under uncertain demands

Provisionally accepted
Zhiping Yu Zhiping Yu Xin Feng Xin Feng *
  • Nanjing Forestry University, Nanjing, China

The final, formatted version of the article will be published soon.

    Green credit financing (GCF) is a specialized financial service offered by banks, aimed at incentivizing borrowers to engage in environmentally sustainable investments, and thus promote sustainable development. It is worth noting that in the practical economic environment, the ability of enterprises to adapt their production and green investment decisions to unforeseen market demand is critical for their green credit financing. This paper investigates a joint production and green investment optimization problem of manufacturers financed through GCF under uncertain demand. Only the interval bound of the demand are known. The problem is initially formulated as a min-max regret model to maximize robustness. Based on problem characterizations, an optimal joint production and green investment decision is proposed. To determine the effectiveness of the proposed decision, computational experiments are conducted on real-world instances. Besides, sensitivity analysis is conducted to derive managerial insights on the implementation of GCF under uncertain demand.

    Keywords: green credit, carbon emission, robust optimization, min-max regret, Uncertain demand

    Received: 30 Aug 2024; Accepted: 18 Dec 2024.

    Copyright: © 2024 Yu and Feng. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

    * Correspondence: Xin Feng, Nanjing Forestry University, Nanjing, China

    Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.