System Engineering and Productivity

System Engineering and Productivity

Evaluation of Water Treatment Technologies in Water-Intensive Industries Under Cap-and-Trade Strategy: A Game-Theoretic Approach

Document Type : Research Paper

Authors
Mohammad-Bagher Jamali 1
Mohammad-Ali Eghbali 2
1 Corresponding author: Assistant Professor, Department of Industrial Engineering, Shiraz University of Technology, Shiraz, Iran
2 Assistant Professor, Department of Industrial Engineering, Faculty of Computer and Industrial Engineering, Birjand University of Technology, Birjand, Iran
10.22034/sep.2025.2049011.1245
Abstract
Water-intensive industries such as steel production, with a significant carbon footprint in both production stages and water treatment processes, play a major role in environmental pollution. This issue has prompted governments to develop policies and mechanisms aimed at reducing carbon emissions in these industries. One such policy is carbon trading—a mechanism in which each company is allocated a specific carbon emission quota. Companies that exceed this quota face penalties, while those with lower emissions can sell their surplus quotas to others. This study employs a Stackelberg game model, where the government acts as the leader and producers as the followers. Using game theory, the effects of government subsidies on the equilibrium values of decision variables, including production levels, carbon emissions, and costs, are analyzed. The results of this analysis provide valuable insights for governments and producers in formulating effective policies to reduce the carbon footprint and improve the environmental performance of industries. By offering practical insights into economic and environmental interactions, this research plays a crucial role in understanding the impact of governmental policies on decision-making in water-intensive industries.

Highlights

  • Examining how government subsidies affect production, carbon emissions, and costs.
  • Exploring policies to lower carbon footprints and enhance industrial environmental performance.
  • Analysis of decision-making in water intensive industries influenced by government intervention.

Keywords
Carbon trading
Water-intensive industries
Environmental pollution
Stackelberg model
Game theory
Subjects

Copyright © Mohammad-Bagher Jamali, Mohammad-Ali Eghbali

 

License

This article is released under the Creative Commons Attribution (CC BY 4.0) license. Anyone is free to copy, share, translate, and adapt this article for any purpose, whether commercial or non-commercial, as long as proper citation is given to the authors and original publication.

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System Engineering and Productivity
Volume 5, Issue 2 - Serial Number 15
Serial No. 15, Summer Quarterly
Summer 2025
Pages 1-16

  • Receive Date 01 January 2025
  • Revise Date 07 February 2025
  • Accept Date 17 February 2025
  • First Publish Date 17 February 2025
  • Publish Date 23 August 2025