The impact of various carbon reduction policies on green flowshop scheduling

Abstract

In this paper we consider, from an environmental policy-maker perspective, how carbon reduction policies impact the economic competitiveness of the manufacturing sector. Specifically, we focus on flowshop scheduling – which typically aims to minimize makespan for purely economic objectives – and consider how three common carbon reduction policies – namely, taxes on emissions, baselines on emissions, and emissions trading schemes – can create competitive green flowshops that balance minimization of makespan and carbon emissions. The goal is to enable policy-makers to understand how to set policies and control parameters to achieve environmental objectives while ensuring global economic competitiveness of industry. We initially present a set of mixed-integer linear programming (MILP) models for flowshop scheduling problems operating in a regulated environment in which each carbon reduction policy is adopted. We then introduce a bi-objective scheduling framework for the corresponding problem to obtain alternative solutions under each policy. These models and their computational results however, are not the main focus of the study, but are presented as a means to demonstrate how green policies co-exist with economic objectives, with policy-makers in control of the balance. To this end, based on financial data from Australia’s carbon emissions profile, we provide a policy-oriented analysis of the models, and some managerial insights into the effect of scheduling strategies on carbon emissions under different reduction policies. These insights offer support to both environmental policy-makers and corporate production and sustainability managers to determine whether it is technically feasible and profitable to replace traditional scheduling strategies with environmentally friendly scheduling strategies.