Introduction
Researchers have realized that Carbon
is the largest economic threat in the world. It has been the cause of increased global warming which has put life on the planet at risk of extinction. One of the greatest contributors to global warming is fossil fuels; measures are being put by the governments to make sure carbon footprints are reduced. a good example is the continued decrease in allowable emissions and increment of tax each year. (Alexandra, 2006)
The possibility of reducing energy consumption and plant’s carbon footprints in the times when almost all electrical power is generated from gas, oil, and coal-based power plants. In the industries where vacuum material handling systems are used. The solution of using the latest vacuum technology for vacuum handling applications is the most advisable use. In the production of vacuum cleaners, we can not assume the production to have undergone market failure since we are talking about the change in the production system of the products made in the firm. the market force in this particular situation is serving the market but to put into consideration reduction in social cost, consideration of public health, and/or the impact of the emitted carbon to the environment the need for change in production come automatically. The management has put into consideration the externalities this may be because of measures taken by the government to restrict production of Eldis and Barrows that have high social cost forcing the respective manufacturers to restate their firms or the will by management to improve technologically to improve the future marketing of their product.
Reducing firm’s carbon footprint
The Financial times has on it that carbon markets create a muddle, living much space for manipulation. The impression that we should clear old forest into the quick-growing forest that will be able to clear carbon in the place is still in the minds of people. Reduction of pollution is the key statement in a restatement of the company compliance to the technology come later but a key issue under discussion in the report. Carbon credits are a key component of national and inter-nation Emissions Trading schemes. these carbon credits provide a way to reduce the greenhouse effect. (Alexandra, 2006)
Details per product of carbon footprint
The old the technology in use the more energy is in use. According to the research, the traditional vacuum source usually provides various points of use at different distances. On the contrary, a decentralized source locates vacuum pumps nearer to the point of use. By shifting from the former to the latter, energy consumption is significantly reduced.
This comes with projections of costs of change and marketing of the new brand to the market. On the other hand, using low carbon emission gadgets which will use low electricity will make a poor quality machine which will not attract as many customers as the earlier.
Reducing customers emissions for vacuum cleaners
Customers cost regulations
In many cases, people and organizations have bought credit worthless goods that do not yield any reductions in carbon emissions. Industrial companies profiting from gaining carbon credits on the basis of efficiency gains from which they have already benefited substantially. Inadequate verification makes it difficult for buyers to access the true value of carbon credits. (David, 2003)
Consumers’ aspirations should be put into consideration. Improving technology to reducing carbon footprints means an increment in production cost; this will translate to the high cost of the product under discussion. An increase in price will lower the purchasing power of the customer which intern affect the demand for the vacuum cleaner.
Putting this into account one of the shortest paths one can follow is to reduce customers’ emissions for vacuum cleaners for buy bags less than quality is to be weighed.
The consumer will tend to maximize utility and producer attempts to maximize profits of Eldis And Barrows subject to their constraints I. e. demand for the products, technology applied and the prices of the inputs used in production. the producer will always compare the marginal revenue and marginal cost of the goods which reach at break-even at equilibrium further increase in marginal revenue will get to marginal profits by the producer. On the other hand marginal utility point the net price of the goodwill reaches zero.
The Market projections
Prospects the company must be put into concern. Ways to maintenances of it customers also should be focused on with great care. Consumers react very quickly to prices differentials. putting our concern on efficiency in production and consumption. The most common observation suggests consumer choice be the most significant source of welfare loss. Much of this report take on the production of carbon-neutral products and consumer efficient material.
Taking cost-benefit analysis to aid social decision making, the intervention in Eldis and barrows production impacts consumer’s ability to account for the added amount on the cost of the two products. the public willingness to pay for the improved gadget or avoiding extra cost can only be calculated in terms of opportunity cost. this measurement can only be guided by considering the monetary value of the ongoing production vis a vis the expected return. the production management will in this particular case take the manufacturing expenses, marketing expenses then compare the two to come up with the estimated cost of the products.
Cost of Factory Restatement and Advertisement
The cost of changing the production of the commodity will be the cost of the foregone product, the equivalent cost of the physical capital of the old Eldis and Barrows.
The introduction of the new machinery will and the change in the production of the goods introduced to carry a burden of the introduction of new goods to the market cost of advertisement also not accounted for. Production and consumption quantities of Eldis and Barrows will coordinate by supply and demand products. More to this restatement of the firm will come as a decision to change the whole mechanism laid down to improvements in technology and production of goods at an improved degree. One of the most obvious experiences is an increment in production costs of the Eldis and Barrows. A lesser rate of production accelerates with time.
Implication for the consumer to the Product
The rise of the cost of the product will be received by the consumers with mixed reactions. many tend to identify other commodities that are cheaper. The understanding of advancement in technology and the impact of carbon emission will also in one way or another contribute to the marketing of the commodity. The company must incur some cost in familiarizing their new product to the market.
The new product will have increased utility in the market and the sale mechanism will automatically change with the change of the product. (Wrigley, 2004)
Goods produced in the market are commonly characterized by their prices and quantities. these are usually related to the supply and demand of the goods in mention. regulation in production of Eldis and Barrows will be reflected in prices and quantity demanded by the customers due to change in production cost which is reflected in prices of Eldis and Barrows i. e. there is efficient communication between all these factors. the results of which are reflected in the final product cost. the equilibrium of demand and supply of Eldis and Barrows will reflect the actual cost of the products incurred by the customers.
Arithmetic calculations of the NPV
Net Present Value (NPV) of Eldis and Barrow has been computed as shown below.
Eldis
NPV=950000+750000/(1+0.05)1+750000/(1+0.05)2+750000/(1+0.05)3
+750000/(1+0.05)4+750000/(1+0.05)5
NPV = cumulative value-net cost
= 4197107.74-1077496
=3119611.74
Barrow
NPV=950000+1800000/(1+0.1)1+1800000/(1+0.1)2+1800000/(1+0.1)3+1800000/(1+0.1)4
+1800000/(1+0.1)5
NPV=cumulative value-1077496
=69184160-1077496
=584,046,649
The projections of the NPV
NPV value is usually obtained using variable discount rates with the years of the investment duration better reflects the real situation than that calculated from a constant discount rate for the entire investment duration. The investment funds are targeting a specified rate of return.
Objectives of the study
There are four major sectors in carbon emission in the world today; electricity leading in emitting 42%, followed by transport by 24%, industry processes by 20% trailing is residential and commercial uses with145. Four major sectors produce carbon emissions. There is a solution to the reduction of the emission in all the four sectors by use of alternative technology, use of wind and sun and geothermal power for all electricity generation this will decline the use of fossil fuel in appliances and machine this will decline the emission of carbon and the greenhouse effect. (Wrigley, 2004)
Fortunately, changes can be made in each of these sectors to reduce carbon emissions using readily available technology. Shifting to wind, solar, and geothermal power for all electricity generation could greatly reduce the use of fossil fuels. Increased appliance and machinery efficiency could lower industrial and residential energy use. In the short term, shifts away from personal vehicles toward mass transit, along with increases in fuel efficiency, can reduce transportation emissions. And in the longer term, the use of hydrogen-fueled cars and buses could cut emissions even further. addressed as CO2e. A wide range of emissions are encompassed in emission sources, this is from direct use of fuel to indirect impacts. It can also be from other organizations within the chain of supply. (Alexandra, 2006)
Conclusion and Recommendations
though the cost of change is high the cost of solving the existing problem will be high. This emission can be classified in three ways; Direct emissions that result from activities controlled by the organization. these are activities like the combustion of fuels, emission of gases during operation,
Emissions from electricity usage; this can be in the usage of the light heating and in our case study the powering of equipment; when the company produces goods that are indirectly capable of emissions. either on transportation or when being used by the consumer. Based on the improvement of technology, seeking more efficient and more reliable, machine for a vacuum cleaner which is simple to install and can be adapted to meet your specific application to meet market requirement one will need to introduce cutting-edge solutions to the world of vacuum cleaners technology, to come up with carbon-neutral products that can also reign in the marketing world. (Alexandra, 2006)
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