scholarly journals Optimal Channel Structure for Remanufacturing under Cap-and-Trade Regulation

Processes ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 370
Author(s):  
Ying Teng ◽  
Binggang Feng

In recent years, carbon cap-and-trade has been promoted by many national governments aiming to limit, or cap, total carbon dioxide emissions. Such a mechanism impacts manufacturers’ remanufacturing decisions, as it increases the cost of carbon emissions. The current literature has recognized the importance of carbon cap-and-trade regulations; however, little attention has been paid to what effect such regulations have on manufacturer’s remanufacturing with the flexibility to engage it in-house or outsource it to third-party remanufacturers. To fill this gap, we develop two theoretical models that, under the carbon cap-and-trade mechanism, allow the manufacturer to engage in remanufacturing operations in-house (Model H) or outsource them to an independent remanufacturer (Model R). The primary goal of this paper is to understand what effects carbon cap-and-trade regulations have on green supply chain management when producing new and remanufactured products. In particular, we find that although the manufacturer has a higher incentive to reduce the carbon emissions per remanufactured unit in Model H, the total carbon emissions may be higher than the value in Model R, because the sales volume effect dominates in that case. As such, our analysis suggests that environmental groups and agencies should not only take effective measures to stimulate the incentive of reducing the carbon emissions per unit but must also take care regarding the supply chain structure to limit the volume effect.

2017 ◽  
Vol 117 (10) ◽  
pp. 2468-2484 ◽  
Author(s):  
Xu Chen ◽  
Xiaojun Wang

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.


2018 ◽  
Vol 52 (4-5) ◽  
pp. 1043-1067 ◽  
Author(s):  
Yuyao Fan ◽  
Min Wang ◽  
Lindu Zhao

The increasing amount of carbon emissions has caused global warming and challenged the sustainable development of environment. Governments around the world have implemented carbon policies including carbon cap-and-trade policy. In this paper, we focus on how a two-echelon supply chain manages its carbon footprints in production and inventory under carbon cap-and-trade policy. We extend the classical EOQ (economic order quantity) model and study decisions on production-inventory, carbon trading and emission reduction investment in the decentralized and centralized situations. The results show that emission permit sharing can effectively reduce the total cost and total carbon emissions of the supply chain. Moreover, the manufacturer’s emission reduction effort rises with the increase of the buying and selling prices of emission permits under centralized decision-making. In addition, a compensation mechanism is proposed for the centralized supply chain with emission permit sharing. It is observed that the buying and selling prices of emission permits have a positive influence on the permit sharing price in the compensation mechanism. Meanwhile, the retailer pays less for using the emission permits if it has a higher carbon cap, while the manufacturer with a higher carbon cap is more capable to provide a high compensation for the retailer.


This paper investigates impacts of market segmentation and showrooming effect on the decision-making of an O2O supply chain, and puts forwards a contract to coordinate the O2O supply chain. Results show that, the showrooming effect is beneficial to the manufacturer, retailer and the supply chain, and the retailer will offer offline showrooming service. Under the influence of market segmentation, O2O supply chain is not necessarily better than single-channel supply chain structure. But adopting advertising and other means to improve consumers’ online channel acceptance, it can realize transformation from single-channel to O2O structure. The benefits of showrooming effect can eliminate the disadvantage of market segmentation. Moreover, a service cost sharing contract is put forward, which can perfectly coordinate the O2O supply chain with market segmentation and showrooming effect. These findings help managers to understand which channel structure is optimal by considering market segmentation and showrooming effect and identify possible pathways for them to perfectly cooperation.


2017 ◽  
Vol 23 (2) ◽  
pp. 540-564 ◽  
Author(s):  
Ryan P Thombs

This cross-national study employs a time-series cross-sectional Prais-Winsten regression model with panel-corrected standard errors to examine the relationship between renewable energy consumption and economic growth, and its impact on total carbon dioxide emissions and carbon dioxide emissions per unit of GDP. Findings indicate that renewable energy consumption has its largest negative effect on total carbon emissions and carbon emissions per unit of GDP in low-income countries. Contrary to conventional wisdom, renewable energy has little influence on total carbon dioxide emissions or carbon dioxide emissions per unit of GDP at high levels of GDP per capita. The findings of this study indicate the presence of a “renewable energy paradox,” where economic growth becomes increasingly coupled with carbon emissions at high levels of renewable energy, and the negative effect of economic growth on carbon emissions per unit of GDP lessens as renewable energy increases. These findings suggest that public policy should be directed at deploying renewable energy in developing countries, while focusing on non-or-de-growth strategies accompanied with renewable energy in developed nations.


2017 ◽  
Vol 117 (10) ◽  
pp. 2171-2193 ◽  
Author(s):  
Gokhan Egilmez ◽  
N. Muhammad Aslaam Mohamed Abdul Ghani ◽  
Ridvan Gedik

Purpose Carbon footprint assessment requires a holistic approach, where all possible lifecycle stages of products from raw material extraction to the end of life are considered. The purpose of this paper is to develop an analytical sustainability assessment framework to assess the carbon footprint of US economic supply chains from two perspectives: supply chain layers (tiers) and carbon footprint sources. Design/methodology/approach The methodology consists of two phases. In the first phase, the data were collected from EORA input output and environmental impact assessment database. In the second phase, 48 input-output-based lifecycle assessment models were developed (seven CO2 sources and total CO2 impact, and six supply chain tiers). In the third phase, the results are analyzed by using data visualization, data analytics, and statistical approaches in order to identify the heavy carbon emitter industries and their percentage shares in the supply chains by each layer and the CO2 source. Findings Vast majority of carbon footprint was found to be attributed to the power generation, petroleum refineries, used and secondhand goods, natural gas distribution, scrap, and truck transportation. These industries dominated the entire supply chain structure and found to be the top drivers in all six layers. Practical implications This study decomposes the sources of the total carbon footprint of US economic supply chains into six layers and assesses the percentage contribution of each sector in each layer. Thus, it paves the way for quantifying the carbon footprint of each layer in today’s complex supply chain structure and highlights the importance of handling CO2 source in each layer separately while maintaining a holistic focus on the overall carbon footprint impacts in the big picture. In practice, one size fits all type of policy making may not be as effective as it could be expected. Originality/value This paper provides a two-dimensional viewpoint for tracing/analyzing carbon footprint across a national economy. In the first dimension, the national economic system is divided into six layers. In the second dimension, carbon footprint analysis is performed considering specific CO2 sources, including energy production, solvent, cement and minerals, agricultural burning, natural decay, and waste. Thus, this paper contributes to the state-of-art sustainability assessment by providing a comprehensive overview of CO2 sources in the US economic supply chains.


2019 ◽  
Vol 11 (22) ◽  
pp. 6410 ◽  
Author(s):  
Mengzhi Ma ◽  
Houming Fan ◽  
Xiaodan Jiang ◽  
Zhenfeng Guo

Irregular external truck arrivals at a marine container terminal often leads to long queues at gates and substantial greenhouse gas emissions. To relieve gate congestion and reduce carbon emissions, a new truck arrival pattern called “vessel dependent time windows (VDTWs)” is proposed. A two-phase queuing model is established to describe the queuing process of trucks at gate and yard. An optimization model is established to assign time window and appointment quota for each vessel in a marine container terminal running a terminal appointment system (TAS) with VDTWs. The objective is to minimize the total carbon dioxide emissions of trucks and rubber-tired gantry cranes (RTGCs) during idling. The storage capacity constraints of each block and maximum queue length are also taken into consideration. A hybrid genetic algorithm based on simulated annealing is developed to solve the problem. Results based on numerical experiments demonstrate that this model can substantially reduce the waiting time of trucks at gate and yard and carbon dioxide emissions of trucks and RTGCs during idling.


Author(s):  
Qi Lu ◽  
Guang-Hui Zhou ◽  
Fu Zhao ◽  
Lei Li ◽  
Ya-Ping Ren

Due to the increasing concern on environmental sustainability, many efforts have been made to improve the energy efficiency and reduce carbon emissions of manufacturing processes, including abrasive machining processes. Oilstones, as the abrasive tool of honing machines, are the key parts to remove material. However, the theoretical models and methods that can be used to support the selection of oilstone parameters for reduced carbon emissions are lacking. To fill this gap, this paper proposes a method to optimize shape and distribution of abrasive grains for minimized carbon emissions while maintaining surface quality. First, the carbon emissions boundary is defined, and a carbon emissions calculation model is established from a macroperspective. As each grain contributes to the total carbon emissions, the behavior of grains during honing is then described and analyzed to obtain the carbon emissions model from a microperspective. Surface area of oilstones and the required total volume of material removal are kept constant to meet the physical size limit of oilstones and machining requirement of workpiece. Third, a shape and distribution optimization model is developed to minimize carbon emissions. A modified particle swarm optimization (PSO) algorithm is adopted to solve this problem. Finally, the proposed method is applied to a case study to validate its effectiveness. Results show that carbon emissions can be reduced by up to 30% using the proposed model. The proposed method provides a new green manufacturing strategy for the honing process and a possibility to customize abrasive tools to meet the environmental challenges.


Author(s):  
Shihong Zeng ◽  
Gen Li ◽  
Shaomin Wu ◽  
Zhanfeng Dong

The Paris agreement is a unified arrangement for the global response to climate change and entered into force on 4 November 2016. Its long-term goal is to hold the global average temperature rise well below 2 °C. China is committed to achieving carbon neutrality by 2060 through various measures, one of which is green technology innovation (GTI). This paper aims to analyze the levels of GTI in 30 provinces in mainland China between 2001 and 2019. It uses the spatial econometric models and panel threshold models along with the slack based measure (SBM) and Global Malmquist-Luenberger (GML) index to analyze the spatial spillover and nonlinear effects of GTI on regional carbon emissions. The results show that GTI achieves growth every year, but the innovation efficiency was low. China’s total carbon dioxide emissions were increasing at a marginal rate, but the carbon emission intensity was declining year by year. Carbon emissions were spatially correlated and show significant positive agglomeration characteristics. The spatial spillover of GTI plays an important role in reducing carbon dioxide emissions. In the underdeveloped regions in China, this emission reduction effect was even more significant.


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