Altruistic profit allocation rules for joint replenishment with carbon cap-and-trade policy

Purpose In the era of climate change, industrial organizations are under increasing pressure from consumers and regulators to reduce greenhouse gas emissions. The purpose of this paper is to examine the effectiveness of product mix as a strategy to deliver the low carbon supply chain under the cap-and-trade policy. Design/methodology/approach The authors incorporate the cap-and-trade policy into the green product mix decision models by using game-theoretic approach and compare these decisions in a decentralized model and a centralized model, respectively. The research explores potential behavioral changes under the cap-and-trade in the context of a two-echelon supply chain. Findings The analysis results show that the channel structure has significant impact on both economic and environmental performances. An integrated supply chain generates more profits. In contrast, a decentralized supply chain has lower carbon emissions. The cap-and-trade policy makes a different impact on the economic and environmental performances of the supply chain. Balancing the trade-offs is critical to ensure the long-term sustainability. Originality/value The research offers many interesting observations with respect to the effect of product mix strategy on operational decisions and the trade-offs between costs and carbon emissions under the cap-and-trade policy. The insights derived from the analysis not only help firms to make important operational and strategic decisions to reduce carbon emissions while maintaining their economic competitiveness, but also make meaningful contribution to governments’ policy making for carbon emissions control.

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When a National Cap-and-Trade Policy with Carve-out Provision May Be Preferable to a National CO2 Tax

The Energy Journal ◽

10.5547/01956574.36.3.8 ◽

2015 ◽

Vol 36 (3) ◽

Author(s):

Megan H. Accordino ◽

Deepak Rajagopal

Keyword(s):

Trade Policy ◽

Cap And Trade ◽

Co2 Tax

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Analytics of cap-and-trade policy for dual supply chain network structures

Clean Technologies and Environmental Policy ◽

10.1007/s10098-020-01937-5 ◽

2020 ◽

Vol 22 (10) ◽

pp. 1999-2021

Author(s):

Umangi Pathak ◽

Ravi Kant ◽

Ravi Shankar

Keyword(s):

Supply Chain ◽

Trade Policy ◽

Network Structures ◽

Supply Chain Network ◽

Cap And Trade

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Vehicle routing analyses with integrated order picking and delivery problem under carbon cap and trade policy

Management Research Review ◽

10.1108/mrr-01-2019-0013 ◽

2019 ◽

Vol 43 (2) ◽

pp. 223-243 ◽

Cited By ~ 1

Author(s):

Sanjay Jharkharia ◽

Chiranjit Das

Keyword(s):

Sensitivity Analysis ◽

Trade Policy ◽

Vehicle Routing ◽

Carbon Footprint ◽

Order Picking ◽

Mixed Integer ◽

Vehicle Speed ◽

Cap And Trade ◽

Content Type ◽

Total Cost

Purpose The purpose of this study is to model a vehicle routing problem with integrated picking and delivery under carbon cap and trade policy. This study also provides sensitivity analyses of carbon cap and price to the total cost. Design/methodology/approach A mixed integer linear programming (MILP) model is formulated to model the vehicle routing with integrated order picking and delivery constraints. The model is then solved by using the CPLEX solver. Carbon footprint is estimated by a fuel consumption function that is dependent on two factors, distance and vehicle speed. The model is analyzed by considering 10 suppliers and 20 customers. The distance and vehicle speed data are generated using simulation with random numbers. Findings Significant amount of carbon footprint can be reduced through the adoption of eco-efficient vehicle routing with a marginal increase in total transportation cost. Sensitivity analysis indicates that compared to carbon cap, carbon price has more influence on the total cost. Research limitations/implications The model considers mid-sized problem instances. To analyze large size problems, heuristics and meta-heuristics may be used. Practical implications This study provides an analysis of carbon cap and price model that would assist practitioners and policymakers in formulating their policy in the context of carbon emissions. Originality/value This study provides two significant contributions to low carbon supply chain management. First, it provides a vehicle routing model under carbon cap and trade policy. Second, it provides a sensitivity analysis of carbon cap and price in the model.

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Modelling and optimization of a manufacturing/remanufacturing system with storage facility under carbon cap and trade policy

Journal of Cleaner Production ◽

10.1016/j.jclepro.2018.05.057 ◽

2018 ◽

Vol 193 ◽

pp. 441-458 ◽

Cited By ~ 35

Author(s):

Sadok Turki ◽

Christophe Sauvey ◽

Nidhal Rezg

Keyword(s):

Trade Policy ◽

Storage Facility ◽

Cap And Trade ◽

Modelling And Optimization

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Profit Distribution Model for Construction Supply Chain with Cap-and-Trade Policy

Sustainability ◽

10.3390/su11041215 ◽

2019 ◽

Vol 11 (4) ◽

pp. 1215 ◽

Cited By ~ 4

Author(s):

Wen Jiang ◽

Wenfei Lu ◽

Qianwen Xu

Keyword(s):

Supply Chain ◽

Trade Policy ◽

Emission Reduction ◽

Carbon Emission ◽

Cap And Trade ◽

Carbon Emission Reduction ◽

Profit Distribution ◽

General Contractor ◽

Cost Coefficient ◽

Pure Competition

Cap-and-trade has become one of the most widely used carbon emission limitation methods in the world. Its constraints have a great impact on the carbon emission reduction decisions and production operations of supply chain enterprises, as well as profit distribution. In the construction supply chain, there are few studies on the profit distribution and emission reduction decisions considering cap-and-trade policy. This paper investigates the profit distribution model of a two-echelon construction supply chain consisting of a general contractor and a subcontractor with cap-and-trade policy. Using game theory and Shapley value method, the optimal emission reduction decisions and profit distribution under three cooperation modes of pure competition, co-opetition, and pure cooperation are obtained, respectively. The research shows that the profits of the construction supply chain are increasing in pure competition, co-opetition, and pure cooperation scenarios, and the emission reduction amount of the construction supply chain in the case of pure cooperation is greater than that of pure competition and co-opetition. The carbon emission reduction amount under the co-opetition scenario is not always greater than that under the pure competition scenario, which depends on the emission reduction cost coefficient relationship of general contractor and subcontractor. When the cost coefficient of emission reduction of the general contractor is less than that of the subcontractor, the emission reduction amount under pure competition is larger than that under co-opetition. A numerical study is carried out to verify the conclusions and illustrated the profits of the supply chain decreased with the increase of carbon emission reduction cost coefficient, and had nothing to do with the emission reduction efficiency of enterprises.

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