Uncertainty Analysis of the Carbon Tax on Net Profit for an Enterprise

Abstract:

A carbon emission trading/carbon tax is an economic incentive to encourage enterprises to reduce their carbon emissions. The information of greenhouse gas emissions at 2005-2009, carbon emissions trading prices in Europe, the euro-NT dollar exchange rate, and the profits and losses of enterprises, manufacturers of panel-related technology, were gathered to estimate VaR (Value at Risk) and CVaR (Conditional Value at Risk) values of implementing carbon tax or carbon emissions trading, using the Monte Carlo simulation method with the Crystal Ball software. This study uses sensitivity analysis, tornado diagrams, and spider graphs to determine the influence that variables have on enterprise net profit.

• Periodical: Applied Mechanics and Materials (Volumes 448-453)
• Pages: 4197-4202
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.448-453.4197
• Online since: October 2013
• Authors: Tai Yi Yu, Yung Ching Fan, Ruei Shan Lu, Kuo Wei Peng
• Keywords: Conditional Value at Risk, Monte Carlo Simulation, Value at Risk

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