Abstract

Growth in environmental sustainability has prompted the logistics industry to seek sustainable development, and carbon tax policies are considered an effective approach to reducing carbon emissions. This study investigates the optimization of sustainable transportation and inventory under a carbon tax policy and explores effective methods for coordinating the interests of governments and enterprises. The results can provide insights into sustainable logistics for decision-making by enterprises and policy-making by governments. We first examine a Stackelberg game model and design an iterative solution to optimize sustainable transportation and inventory under the carbon tax policy. We then establish a three-stage dynamic game model to optimize the wholesale price, carbon tax rate, and proportion of sustainable investment shared by the government. Furthermore, we perform a simulation to identify the optimal solution of the three-stage game, and we compare the simulation results with a numerical example. The results indicate that a carbon tax policy can improve social welfare and the sustainability of transportation and inventory but could hinder corporate profits. An appropriate sustainable investment-sharing strategy could compensate for the shortcomings of the carbon tax policy and result in positive outcomes for governments and enterprises.

Highlights

  • With increasingly severe environmental pollution worldwide, people have gradually become aware of the importance of sustainable development

  • Studies on environmental factors have focused on the impact of carbon emissions and carbon-reduction policies on transportation and inventory integration decisions. e present study extends the literature by introducing sustainable investment factors into the decision-making model for transportation and inventory integration, and we focused on the optimal decisions to reach sustainable levels of emissions due to transportation and inventory

  • Sustainable supply chain management is a widely discussed topic in environmental sustainability, and a carbon tax is an effective method for reducing carbon emissions

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Summary

Introduction

With increasingly severe environmental pollution worldwide, people have gradually become aware of the importance of sustainable development. To address pollution, developed and developing countries have implemented regulations aimed at reducing carbon emissions [2]. A carbon tax is one such emissions-reduction regulation that has been widely implemented to encourage companies to reduce their carbon emissions [3]. In Australia, the carbon tax was implemented in 2011, with a rate of AU$23 per ton of carbon in 2012 [4]. Dong et al [6] indicated that sustainable investment can reduce the carbon emissions of manufacturers, and both manufacturers and sellers can benefit from it. In 2007, Marks & Spencer invested £200 million in carbon-reduction efforts; Walmart has reduced its carbon emissions by 667,000 m3 after requiring its 60,000 suppliers to reduce their packaging by 5% [8]

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