2026-09-19T19:52:45Zhttps://dspace.mit.edu/server/oai/requestoai:dspace.mit.edu:1721.1/1466612022-12-01T03:26:33Zcom_1721.1_7582com_1721.1_7581col_1721.1_131023
Graves, Stephen C.
Zheng, Y. Karen
Wyler, Paige
Massachusetts Institute of Technology. Operations Research Center
Sloan School of Management
2022-11-30T19:39:41Z
2022-11-30T19:39:41Z
2022-05
2022-08-25T19:15:56.628Z
https://hdl.handle.net/1721.1/146661
Carbon emission reductions have been at the center of decision-making for companies across industries, particularly in automotive. As electric vehicles are introduced to the market, there is a large potential for reducing emissions associated with transportation. However, the process to build and use these vehicles is itself carbon intensive.
This thesis explores mechanisms to enable effective decision-making to meet carbon reduction goals. Carbon accounting is a new concept for most original equipment manufacturers, and they lack a framework for weighing the importance of carbon alongside competing business objectives. Additionally, most mechanisms used in other industries require a high level of data availability and knowledge management that may not exist in a dynamic, fast-growing company launching its first products.
In this thesis, we test carbon decision-making mechanisms in a high-growth business environment. A framework is developed for carbon decision-making, and the use of a carbon price is tested for specific business use cases by adding this cost to the objective function of a cost-optimized battery storage system. Using the results from these use cases, recommendations are made for applying carbon pricing to future decisions as knowledge management infrastructure evolves. This work provides a model for decision-making in a high-growth environment and creates clear conditions under which carbon pricing can effectively impact decisions.
S.M.
M.B.A.
Massachusetts Institute of Technology
In Copyright - Educational Use Permitted
Copyright retained by author(s)
https://rightsstatements.org/page/InC-EDU/1.0/
Developing a Decision-Making Framework for Carbon: Incorporating Carbon into Optimized Business Objectives
Thesis
application/pdf
Master
Master of Science in Operations Research
Master of Business Administration
Publication
unknown
unknown
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<Abstract>Carbon emission reductions have been at the center of decision-making for companies across industries, particularly in automotive. As electric vehicles are introduced to the market, there is a large potential for reducing emissions associated with transportation. However, the process to build and use these vehicles is itself carbon intensive.
This thesis explores mechanisms to enable effective decision-making to meet carbon reduction goals. Carbon accounting is a new concept for most original equipment manufacturers, and they lack a framework for weighing the importance of carbon alongside competing business objectives. Additionally, most mechanisms used in other industries require a high level of data availability and knowledge management that may not exist in a dynamic, fast-growing company launching its first products.
In this thesis, we test carbon decision-making mechanisms in a high-growth business environment. A framework is developed for carbon decision-making, and the use of a carbon price is tested for specific business use cases by adding this cost to the objective function of a cost-optimized battery storage system. Using the results from these use cases, recommendations are made for applying carbon pricing to future decisions as knowledge management infrastructure evolves. This work provides a model for decision-making in a high-growth environment and creates clear conditions under which carbon pricing can effectively impact decisions.</Abstract>
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