Abstract

Taking carbon emissions into account in decision-making on distribution network operations contributes to achieving the goal of promoting energy conservation and emissions reduction. The focus of this paper is to research multicapacity hierarchical location-routing robust optimization in distribution network design under carbon trading policies. First, this problem is described as a mixed integer nonlinear programming model. Then, based on strong duality theory, the nonlinear model is transformed into a linear robust equivalent model. Finally, GUROBI software is used for numerical calculation and analysis. The results suggest the following: carbon trading policies have a carbon abatement effect; with a decrease in the carbon emissions cap and an increase in carbon trading prices, carbon emissions undergo a ladder-like downward trend; uncertain fluctuations in freight units will influence the optimal decision-making patterns of enterprises; and making more vehicles available will reduce carbon emissions. The government should set a reasonable carbon emissions cap according to market conditions. Enterprises could adopt robust control parameters on the basis of their decision-making preferences and consider the impact of carbon trading policy in formulating and adjusting an optimal decision-making scheme.

Highlights

  • China, the world’s largest emitter of CO2, is facing increasing pressures to conserve energy and reduce emissions

  • On the basis of the traditional supply chain distribution network location-routing problem (LRP) (DNLRP), this paper introduces a box-indeterminate set and two uncertain level parameters to describe unit freight uncertainty and establishes a multi-capacity-level LRP robust optimization model considering carbon trading policies and carbon emissions

  • The contributions of our study can be summarized as follows: (i) We formally define the Green LRP (GLRP) under carbon trading policies. (ii) We propose a mixed integer linear programming formulation for the GLRP, and we reformulate the GLRP with a well-known robust approach. (iii) We carry out a sensitivity analysis on key parameters and provide management insights

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Summary

Introduction

The world’s largest emitter of CO2, is facing increasing pressures to conserve energy and reduce emissions. Controlling carbon emissions and promoting sustainable development have become important policy objectives of the Chinese government [1]. Some studies have examined the trend of China’s carbon emission reduction regulation policies. Carbon tax in the short term and carbon trading in the long term is more in line with the future situation of China [2]. More studies believe that carbon tax and carbon trading are not opposite in nature, and the comprehensive application of the two is a better choice for environmental regulations [3]. The parallel and comprehensive application of carbon trading and a carbon tax together should be considered [4]. The carbon tax can be introduced when an appropriate opportunity arises while actively promoting the carbon emissions trading mechanism [5]. China was one of the first countries to conduct research on

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