Abstract

This paper investigates the joint optimization problem on the logistics infrastructure investment and CO2 emission taxes for a sustainable city logistics network design by a goal programming approach where the cost recovery, service level and CO2 emission reduction goals are involved. The above multi-objective logistics infrastructure capacity investment and CO2 emission taxes problem is formulated as a bi-level goal programming model. Given the priority structure of the goals, the total deviations from predetermined goals are minimized in the upper level, while the lower level of the model serves as the service route choice equilibrium problem of logistics users. To solve the proposed model, a genetic algorithm is developed, where the method of successive average (MSA) is embedded. The case study focusing on the urban logistics network of Changsha, China demonstrates the effectiveness of the bi-level goal programming model and the genetic algorithm. The findings reveal that the priority rankings of the goals have a significant impact on the joint decisions of CO2 emission taxes and logistics infrastructure capacity investment. The proposed methodology provides an avenue to balance multiple conflicting objectives and obtain an economical and environmental city logistics network.

Highlights

  • IntroductionDue to rapid urbanization in recent years, the demand of distribution in city logistics networks has increased dramatically [1,2]

  • The proposed solution algorithm was coded in C++ and run on a laptop Dell N5040 with an Intel Pentium 2.13-GHz CPU and 4.00 GB random-access memory (RAM)

  • An optimization model based on goal programming (GP) approach is proposed to address the joint optimization on logistics infrastructure investment and CO2 emissions taxes setting problem in the city logistics network, in which three decision objectives are considered

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Summary

Introduction

Due to rapid urbanization in recent years, the demand of distribution in city logistics networks has increased dramatically [1,2]. Freight transportation, which plays an essential role along products distribution, is one of main sources of emissions of greenhouse gases (GHGs), e.g., carbon dioxide (CO2 ), nitrogen oxide, sulphur oxide, and particulate matters [3]. Almost 10% of carbon emissions is attributed to freight transportation [4]. It is evident that freight transportation adversely affects the sustainability of city logistics systems [5]. It is significant to implement effective measures (e.g., increasing the coordination between logistics participants [6]) and legislations (e.g., CO2 emission taxes) to reduce unfavourable environmental impacts caused by increased vehicle pollution emissions so as to improve efficiency and environmental sustainability of city logistics systems

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