Outsourcing Decision Model of Sewage Treatment Based on Emissions Trading

Abstract

This paper considers the professional treatment manufacturers to participate in emissions trading under the condition of the emissions trading which establish the supply chain between the manufacturers and the providers of professional sewage treatment. By using the strategy analysis method, under the certain conditions this study analyze the difference of the outsourcing decisions on the treatment price fluctuating. This study also conclude that the expected return of the supply chain on the strategy of all manufacturers choose to outsourcing the sewage treatment is less than the expected return on the integration supply chain strategy. Also, this research documents the existence of the supply chain. The conclusions of this paper contribute to the establishment of emissions trading under the conditions of wastewater treatment supply chain and future contributing to the sewage treatment industry with the application.

Key words: Emission trading; Outsourcing decision; Sewage treatment