from the conferences organized by TANGER Ltd.
The aim of the paper is to design the model for the industrial company’s profit optimization. The decision-making on the amount and structure of production is influenced by many constraints. The emphasis is put on the environmental factors including especially EU ETS system with emission trading and fees for released pollutants. These factors influence both – cost (fees that must be paid and emission permits which must be bought for covering released emissions) and revenue (from selling unused permits). Model counts with the possibility of company’s choice which stock market enabling emission trading will be used for trades. The designed model is constructed as a model of linear programming and it is verified on data of the concrete steel company. The result of the paper is that environmental factors have strong influence on company total profit. Thanks to amount of permits granted to steel companies from the EU for free, it is even possible to increase the company profit. The size of this increase can be affected by choosing the most profitable stock market at the moment of making the decision.
Keywords: emissions trading, EU ETS, optimization, environmental factors, steel companies© This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.