Consistent Allocation of Emission Responsibility in Fossil Fuel Supply Chains

2021 ◽  
Author(s):  
Sanjith Gopalakrishnan ◽  
Daniel Granot ◽  
Frieda Granot

Since 2016, Canada’s federal government has pledged to factor in upstream emissions during the environmental impact assessment of fossil fuel energy projects. The upstream emissions attributable to a proposed project could be compared against a rejection threshold—a maximum permissible level of emissions—or the firm could be mandated to offset the attributed emissions. We adopt a cooperative game-theoretic model and propose the nucleolus mechanism to apportion upstream emission responsibilities in a fossil fuel supply chain, represented by a directed tree, wherein the nodes correspond to various entities in the supply chain such as extractors, distributors, refineries, and end consumers. The nucleolus allocation avoids the distortionary effects of double counting and exhibits a certain consistency property that is especially important in a regulatory context wherein fossil fuel supply chains span multiple legal jurisdictions. We develop a polynomial-time algorithm to compute the nucleolus and further prove that it arises as the unique subgame perfect equilibrium allocation of a noncooperative game induced by two easily stated and verifiable policies, thereby providing an implementation framework. We then demonstrate the strong Nash stability of the nucleolus mechanism subject to the two policies, study its sensitivity to parameter changes, and characterize it on the basis of fairness considerations. Furthermore, under the common assumption that the emissions allocated to a firm and the resulting financial penalties do not impact the revenues from the firm’s core operations, we also provide lower-bound guarantees on the welfare gains it delivers to firms in the fossil fuel supply chain and on the incentives it offers such firms to adopt emission abatement technologies. Finally, we contextualize our discussion with a case study on a proposed expansion of the Trans Mountain pipeline in Western Canada. This paper was accepted by Chung Piaw Teo, optimization.

2019 ◽  
Vol 11 (18) ◽  
pp. 5030 ◽  
Author(s):  
Ziang Liu ◽  
Tatsushi Nishi

The government plays a critical role in the promotion of recycling strategy among supply chain members. The purpose of this study is to investigate the optimal government policies on closed-loop supply chains and how these policies impact the market demand and the returning strategies of manufacturers and retailers. This paper presents a design of closed-loop supply chains under government regulation by considering a novel three-stage game theoretic model. Firstly, Stackelberg models are adopted to describe the one-shot game between the manufacturer and the retailer in a local market. Secondly, based on the Stackelberg equilibriums, a repeated and dynamic population game is developed. Thirdly, the government analyzes the population game to find the optimal tax and subsidy policies in the whole market. To solve the proposed model, the idea of backward induction is adopted. The results suggest that, by collecting tax and allocating subsidy, the government can influence the market demands and return rates. The centralized supply chain structure is always preferred for the government and the market. The government prefers to allocate subsidy to low-pollution, low-profit remanufactured products. The environmental attention of the government affects the subsidy policy.


2020 ◽  
Vol 31 (4) ◽  
pp. 669-686 ◽  
Author(s):  
Abhijeet Ghadge ◽  
Merve Er Kara ◽  
Hamid Moradlou ◽  
Mohit Goswami

PurposeThe study aims to analyse the impact of Industry 4.0 implementation on supply chains and develop an implementation framework by considering potential drivers and barriers for the Industry 4.0 paradigm.Design/methodology/approachA critical literature review is performed to explore the key drivers and barriers for Industry 4.0 implementation under four business dimensions: strategic, organisational, technological and legal and ethical. A system dynamics model is later developed to understand the impact of Industry 4.0 implementation on supply chain parameters, by including both the identified driving forces and barriers for this technological transformation. The results of the simulation model are utilised to develop a conceptual model for a successful implementation and acceleration of Industry 4.0 in supply chains.FindingsIndustry 4.0 is predicted to bring new challenges and opportunities for future supply chains. The study discussed several implementation challenges and proposed a framework for an effective adaption and transition of the Industry 4.0 concept into supply chains.Research limitations/implicationsThe results of the simulation model are utilised to develop a conceptual model for a successful implementation and acceleration of Industry 4.0 in supply chains.Practical implicationsThe study is expected to benefit supply chain managers in understanding the challenges for implementing Industry 4.0 in their network.Originality/valueSimulation analysis provides examination of Industry 4.0 adoption in terms of its impact on supply chain performance and allows incorporation of both the drivers and barriers of this technological transformation into the analysis. Besides providing an empirical basis for this relationship, a new conceptual framework is proposed for Industry 4.0 implementation in supply chains.


2020 ◽  
Vol 11 (SPL1) ◽  
pp. 1054-1057
Author(s):  
Bindu Swetha Pasuluri ◽  
Anuradha S G ◽  
Manga J ◽  
Deepak Karanam

An unanticipated outburst of pneumonia of inexperienced in Wuhan, , China stated in December 2019. World health organization has recognized pathogen and termed it COVID-19. COVID-19 turned out to be a severe urgency in the entire world. The influence of this viral syndrome is now an intensifying concern. Covid-19 has changed our mutual calculus of ambiguity. It is more world-wide in possibility, more deeply , and much more difficult than any catastrophe that countries and organizations have ever faced. The next normal requires challenging ambiguity head-on and building it into decision-making. It is examined that every entity involved in running supply chains would require through major as employee, product, facility protocols, and transport would have to be in place. It is an urgent need of structuring to apply the lessons well-read for our supply chain setup. With higher managers now being aware of the intrinsic hazards in their supply chain, key and suggestions-recommendations will help to guide leader to commit to a newly planned, more consistent supply chain setup. Besides, the employees’ mental health is also a great concern.


2018 ◽  
Vol 44 (277) ◽  
pp. 93-107
Author(s):  
Aurélien Rouquet ◽  
Christine Roussat ◽  
Valentina Carbone

La littérature ensupply chain management(SCM) a délaissé un type desupply chains : lesconsumer-to-consumer(C2C)supply chains, qui relient les consommateurs lorsqu’ils échangent des produits. Reposant sur une approche conceptuelle, cet article montre à la communauté logistique et SCM l’intérêt qu’il y a à explorer cessupply chains. L’article dégage quatre spécificités de ces chaînes : 1) leur orientation perpendiculaire auxsupply chainsclassiques, 2) le fort amateurisme de ses acteurs, 3) leur large encastrement social, 4) leur structure plus directe. L’étude des C2Csupply chainsest susceptible d’élargir le spectre du SCM en y intégrant plus fortement le consommateur.


2020 ◽  
Vol 8 (7) ◽  
pp. 530
Author(s):  
Jeho Hwang ◽  
Sihyun Kim

Local residents living adjacent to ports are directly affected by the fine dust generated from the port operations. There is a need to prepare detailed measures according to cargo type given the high correlation between the types of dust-producing cargo primarily managed at ports and local industries. This study attempts to establish the attributes of the cargo handled at ports and the relationship between supply chains built for local key industries and the air quality of the local community. It aims to ascertain which cargo needs managing preemptively at the local level, based on the major cargo types handled in a port. A correlation analysis and Granger causality test were performed to investigate the causality between the factor of cargo and fine dust concentrations. The results in this study indicate the necessity for intensive management of scrap metal cargo among the major cargo handled at the target port, which confirms the large effect of management on fine dust reduction, as well as on reduction efficiency. The results suggest requirements to expand the regulations on the emissions of supply chains by cargo type, not by industry type. Additionally, it is required to minimize the blind spots of management and form an eco-friendly supply chain by introducing green technology. The preparation of emission control measures is also necessary. The findings provide useful insights for the sustainable operations of the local supply chain around the target port and will help the strategic agenda for future improvement.


2021 ◽  
pp. 135050682110207
Author(s):  
Rutvica Andrijasevic

This article makes a conceptual contribution to the broader literature on unfree labour by challenging the separate treatment of sexual and industrial labour exploitation both by researchers and in law and policy. This article argues that the prevailing focus of the supply chain literature on industrial labour has inadvertently posited sexual labour as the ‘other’ of industrial labour thus obfuscating how the legal blurring of boundaries between industrial and service labour is engendering new modalities of the erosion of workers’ rights that are increasingly resembling those typical of sex work. This article advances the debate on unfree labour both conceptually and empirically. Conceptually, it highlights the relevance of social reproduction in understanding forms of labour unfreedom. Empirically, it demonstrates the similarities in forms of control and exploitation between sex work and industrial work by illustrating how debt and housing operate in both settings.


Mathematics ◽  
2021 ◽  
Vol 9 (3) ◽  
pp. 253
Author(s):  
Yuyan Wang ◽  
Zhaoqing Yu ◽  
Liang Shen ◽  
Runjie Fan ◽  
Rongyun Tang

Considering the peculiarities of logistics in the electronic commerce (e-commerce) supply chain (ESC) and e-commerce platform’s altruistic preferences, a model including an e-commerce platform, third-party logistics service provider, and manufacturer is constructed. Based on this, three decision models are proposed and equilibrium solutions are obtained by the Stackelberg game. Then, an “altruistic preference joint fixed-cost” contract is proposed to maximize system efficiency. Finally, numerical analysis is used to validate the findings of the paper. The article not only analyzes and compares the optimal decisions under different ESC models, but also explores the intrinsic factors affecting the decisions. This paper finds that the conclusions of dual-channel supply chains or traditional supply chains do not necessarily apply to ESC, and that the effect of altruistic behavior under ESC is influenced by consumer preferences. Moreover, there is a multiparty win–win state for ESC, and this state can be achieved through the “altruistic preference joint fixed-cost” contract. Therefore, the findings of this paper contribute to the development of an e-commerce market and the cooperation of ESC members.


2021 ◽  
pp. 1-12
Author(s):  
Marina Kolmykova ◽  
Marija Troyanskaya ◽  
Galiya Aralbaeva ◽  
Nadezhda Seliverstova ◽  
Nadezhda Chetverikova

BACKGROUND: Digitalization has transformed the modes of work, communication and collaboration in the workplace, which is a challenge for all organizations, requiring the adaptation of structures, strategies, leadership and management culture. In the study, it is proposed to consider management culture as a potential factor that determines the competitive management of the network structure of supply chains. Despite numerous studies dedicated to supply chains digitalization, there’s lack of researches dedicated to deep investigation of management culture transformation in context of the digitalization of supply chains requires. OBJECTIVE: The purpose of the study is to identify the determinants contributing to the transformation of management culture in context of supply chain digitalization. METHODS: The study is conceptual research that links management culture and the supply chain. Based on the evolutionary dynamism of the theory and practice of management culture, two aspects of culture have been identified: national psychology (subjective beliefs) and company potential (values and behaviour of personnel). RESULTS: It is assumed that the most effective culture in context of supply chain digitalization is digital culture as it is focused on the external environment. It has been found that the key determinants of the change are the values and behaviour of the personnel, and as a result, they create an effective approach to the management culture transformation. CONCLUSIONS: The results of the study allow managers to assess the established organizational culture that facilitates or hinders the activities of the business in order to successfully implement and achieve the goals set. The results of this study can be applied by top managers of companies facing digitalization of supply chains in developing HR and managerial policies and programs.


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