Carbon Emissions In Supply Chain Research Articles

Optimal strategies for carbon emissions policies in competitive closed-loop supply chains: A comparative analysis of carbon tax and cap-and-trade policies

This study addresses a comparative analysis of carbon emissions policies and optimal decisions in competitive closed-loop supply chains. It examines three policy scenarios: a single carbon tax, a single cap-and-trade, and a mixed policy. Competitive intensity, the degree of competition among manufacturers, and product recycling rate, a key element in closed-loop supply chains, can impact the comparative analysis of carbon policies and optimal decisions in competitive closed-loop supply chains. A supply chain system is constructed, consisting of two manufacturers and a shared retailer. We employ a decentralized decision-making approach, with a Cournot game between the manufacturers and a Stackelberg game with the retailer. The analysis considers the impacts of carbon tax, carbon trading price, and recycling rate on optimal decisions and total supply chain profit. The results demonstrate that the mixed carbon policy can yield superior economic and environmental benefits compared with the single carbon tax policy. Mixed policies are likely to be relatively less profitable in most cases than a single cap-and-trade policy. Notably, when the mixed carbon quota exceeds a certain threshold, the mixed policy surpasses the single cap-and-trade policy both economically and environmentally. This study extends previous research by examining the impacts of the recycling rate and various carbon policies on supply chain decisions and profit. The findings offer insights into optimal strategies for reducing supply chain carbon emissions, which benefits policymakers and managers. Finally, it suggests that enterprises should consider a mixed carbon policy to balance economic and environmental goals.

Incentive contract design for reducing carbon emissions in the supply chain under asymmetric information

AbstractIn light of the volatility of market demand and carbon trading prices, this study examines the effects of two carbon policies—the carbon tax policy and the cap‐and‐trade policy—as well as various information structures on the supply chain's carbon emission reduction incentives. A brand incentivizes the carbon abatement effort of an upstream supplier through a two‐part contract in the form of a fixed salary and a proportional incentive. We discover that, under some circumstances, the brand may benefit more from the unobservability of supply chain information. The brand bundles the risk of uncertainty with the supplier through the proportional incentive. In classical incentive contracts, only the cost is considered and the positive effect of risk conveyance is often ignored. In our study, the brand needs to investigate a trade‐off between the benefit of risk conveyance and the drawback of the incentive cost. On one hand, the proportional incentive characterizes the incentive cost. The brand increases the incentive intensity due to the unobservable effort of the supplier. On the other hand, it also has a risk conveyance effect. Specifically, the proportional incentive decreases with the correlation coefficient under the cap‐and‐trade policy. Additionally, there are situations in which consumer surplus benefits from the observability of supply chain information. However, supply chain information transparency is harmful to consumer surplus as supplier risk aversion increases.

Study on the Joint Outsourcing Mechanism of Carbon Emission Reduction in The Supply Chain Considering Risk Appetite

In the case of considering the risk preference, according to the problem of supply chain carbon emission reduction joint outsourcing, build the enterprise outsourcing, the supply chain, and analyze the suppliers and manufacturers of the outsourcing factors of the decision, finally summarize the research in this paper, for the risk aversion of supply chain enterprise carbon emission reduction joint outsourcing mechanism to provide certain management enlightenment, to the future research.

The impacts of retailer's carbon tax on the price and carbon reduction decisions in supply chain

Under the path of environmental-friendly development, retailers gradually play a significant role on curbing carbon emissions in supply chains, and carbon tax for retailers (RCT) could be promising. At the same time, consumers are increasingly inclined to have environmental awareness (CEA). In this paper, we investigate the impacts of RCT on a two-echelon supply chain, along with the coordination of the firms when RCT are present. For the cases with and without RCT, in a carbon-sensitive market, we examine and compare the optimal pricing and carbon reduction decisions, the firms’ profits, consumer surplus and the social welfare. The key findings are listed below. First, the presence of RCT always increases the retailer’s carbon reduction effort, but does not necessarily increase that of the manufacturer, depending on the retailer's carbon reduction investment cost factor (CRICF). Second, RCT will magnify the impacts of the retailer's CRICF on consumer demand, the manufacturer's profit and consumer surplus. Third, analytical and numerical results suggest that the retailer's CRICF is a critical factor for the impacts of RCT on the supply chain, as the firms and the society will benefit from RCT only when the retailer's CRICF is relatively low. Lastly, a two-part tariff contract can coordinate the supply chain, where the carbon reduction efforts of the two firms are equal to those in centralized decision making scenario.

Study on Supply Chain Carbon Emission Reduction Measures

A comparative study of three carbon reduction measures in the supply chain, namely carbon tax, government subsidies and carbon trading, is conducted to analyse their advantages and disadvantages, the level of emission reduction and the impacts on supply chain members. Further, through real-life supply chain scenarios such as manufacturing and new energy vehicles, we focus on analysing the emission reduction effects of different government subsidies for manufacturers and retailers. The results show that carbon tax is advantageous in driving economic growth. Different government subsidies stimulate consumption leading to profit growth. The carbon market is easier to implement and control but is still in its infancy and needs to be supported by relevant policies. Manufacturers and retailers in different industrial supply chains have different preferences when it comes to different subsidies, and the right subsidies can lead to higher social welfare and economic efficiency.

Research on carbon footprint measurement and emissions reduction optimization of the beer supply chain in China.

The carbon emissions of the beer industry have always been a concern. To reduce environmental pollution, this paper systematically calculates the carbon emissions of the beer supply chain and studies the optimization of carbon emissions reduction through scenario simulation. In this study, the boundary of the beer supply chain carbon emissions system is constructed. The scenario simulation and simulation analysis are carried out based on five factors: water recycling utilization rate, power generation mode, weight-volume ratio, recovery ratio, and transportation mode. To obtain the optimal scheme of economic cost and emissions reduction, the cost of the beer supply chain is analyzed under the condition of carbon trading. The results show that the proportion of carbon emissions in each link of the beer supply chain is production, packaging, transportation, and storage, which are 59.58%, 22.27%, 17.67%, and 0.5%, respectively. The improvement of the water recycling utilization rate of manufacturing enterprises can reduce the overall carbon emissions of the supply chain, and the effect is obvious. The highest proportion of carbon emissions in the packaging link is the bottle consumption stage (22.43%). Raw materials transportation accounts for the highest proportion of total carbon emissions in transportation (63.73%). The waterway/railway ratio will be increased to 0.6/0.4, and the carbon emissions in the supply chain will be reduced by 5.7%. In the context of carbon trading, when the carbon trading price is higher than 49.16 yuan/ton, enterprises can achieve a win-win situation in reducing emissions and maintaining positive economic growth by the measures given in the paper.

Reducing supply chain carbon emissions in consideration of energy service companies under the cap-and-trade mechanism

Reducing supply chain carbon emissions in consideration of energy service companies under the cap-and-trade mechanism

Carbon emission reduction mechanism of the pharmaceutical supply chain: Quadrilateral evolutionary game models

The climate crisis and the increasing temperature of the earth have highlighted the need to reduce carbon emissions in supply chains, which has gradually become a global consensus. The focus has often been on traditional carbon emission industries, such as energy and transportation, while the pharmaceutical industry has received little attention. This paper, therefore, aims to fill that research gap by exploring the carbon emission reduction mechanisms of the pharmaceutical supply chain, specifically the role of public participation. We constructed a quadrilateral evolutionary game model, based on evolutionary game theory, consisting of local government, pharmaceutical manufacturers, wastewater treatment plants, and the public. By finding the equilibrium point of the system of replicator dynamics, evolutionary stable strategies are obtained. Our numerical simulation shows the impacts of the principal strategy change and the key variables. This paper also identifies some management implications: 1) When local governments implement a combination policy (carbon subsidies and carbon tax policy), the key is to formulate a subsidy level satisfactory to the four parties. If the subsidy level is in the middle level, the four parties are at their most willing to participate in carbon emission reduction. 2) When local governments implement a single policy (carbon tax policy), the carbon tax rate becomes the key variable. A high level of carbon tax accelerates carbon emission reduction in the pharmaceutical supply chain. 3) No matter what policies local governments implement, the free-rider effect between pharmaceutical manufacturers and wastewater treatment plants always hinders their low-carbon decisions. 4) Public reporting is an effective measure for promoting carbon emission reduction in the pharmaceutical supply chain. When local governments implement a combination policy, it can reduce the cost of reporting and improve the willingness of the public to report. Finally, we put forward suggestions for rationalizing carbon emission reduction.

供电公司供应链碳排放核算方法设计及应用分析研究

供电公司供应链碳排放核算方法设计及应用分析研究

Irrational Carbon Emission Transfers in Supply Chains under Environmental Regulation: Identification and Optimization

Irrational transfer of carbon emissions in the supply chain refers to the phenomenon that after the transfer of carbon emissions occurs, the profits of any party in the supply chain are reduced compared to before the transfer. Identifying and optimizing irrational transfers of carbon emissions in supply chains under environmental regulation are the bases for establishing green supply chains. By constructing a manufacturer-led Steinberg model, we obtained identification intervals for such transfers, then analyzed the influences of the changes in various coefficients. Finally, we designed a carbon emission transfer cost-sharing contract to obtain optimized intervals for shifts from irrational to rational transfers and used a Nash bargaining model to obtain the optimal share rates within the intervals. The results indicated irrational transfer intervals existed in supply chains. When a supplier has a low ability to receive transfers, the range of the irrational transfer intervals increases as the supplier’s capacity coefficient for receiving carbon emission transfers, the transfer investment cost coefficient, the emission reduction investment cost coefficient, and the consumer’s low-carbon awareness intensity increase. Otherwise, the range decreases as these coefficients increase when the supplier’s ability to receive transfers has a large coefficient. In this range, a cost-sharing contract can effectively shift the transfers from irrational to rational and an optimal cost-sharing ratio can help the transfers reach the optimal level, which is beneficial in terms of constructing a green supply chain.

LCA-Based Regional Distribution and Transference of Carbon Emissions from Wind Farms in China

As a clean form of energy utilization, wind power is important for alleviating climate change. Although no direct carbon emissions occur in wind power generation, there exist upstream carbon emissions from manufacturing and installation, which have indirect effects on both the locations of wind farms and areas involved in upstream production and manufacturing. In this paper, based on Input–Output based Life Cycle Analysis (IO-LCA), we explored the lifetime carbon emissions of 378 wind farms in China that were still in operation in 2015. The regional distributions of carbon emissions from wind farms during the whole lifetime were depicted. The embodied carbon emission transfers from the location of the wind farm operation to upstream turbine manufacturing regions were traced. The net emission reduction benefits among regions were also calculated. Results show that carbon emissions mainly distribute in Liaoning, Inner Mongolia, and Tianjin in the turbine manufacturing stage, with a total amount of 3.36 MT. Inner Mongolia contributes the largest carbon emissions (5.94 MT) in the farm construction stage. Inner Mongolia has transferred about 0.99 MT carbon emissions to itself and has the largest net emission reduction. Recognizing the carbon emission transfer of wind farms and dividing the carbon emission reduction responsibilities among regions may shed light on supply chain carbon emission reduction and provincial carbon quota allocation.

Supply Chain Carbon Footprinting and Climate Change Disclosures of Global Firms

The content of climate change disclosures of large, global companies evolved from 2007 to 2016. Within that window, the same set of firms started measuring and disclosing their supply chain carbon emissions. Does carbon footprinting influence the nature and content of a firm's disclosure on the climate change risks that are expected to affect its business? We explore this question using more than 10,925 climate change disclosures collected by the CDP (formerly the Carbon Disclosure Project) from 2,003 firms worldwide. We use singular value decomposition and text similarity scores to quantitatively examine the content of the CDP disclosures from 2007 to 2016. Using fixed effects and dynamic panel models, we find that measuring supply chain carbon emissions (Scope 3) explains a substantial shift in the content and nature of the disclosures. We find no evidence that measuring and disclosing direct emissions (Scope 1) are associated with substantial changes in the content of the disclosures. One explanation for this is that most of the climate change‐related risks are in the supply chain, not within the company boundaries of large, global firms. Our results show the importance of encouraging firms to voluntarily measure their supply chain carbon emissions if they are not yet aware of their contribution and exposure to climate change. Our work shows that firms’ response to climate change is dynamic, and it may take a decade to detect these shifts.

Supply chain carbon emission reductions and coordination when consumers have a strong preference for low-carbon products

Owing to the rising concerns about environmental degradation worldwide, firms in several developed and developing countries are pursuing carbon emission reduction targets. In addition, in recent years, there is evidence of a shift in consumer preferences in favour of low-carbon products. Using a theoretical model, where the shift in consumer preferences is explicitly incorporated, we evaluate the impact of carbon emission reduction cost-sharing on supply chain profit. In our model, consumers are willing to pay a higher price for low-carbon products and hence the retailer considers sharing the cost of carbon emission reduction with the manufacturer. Our model also includes a carbon trading mechanism. We identify a range of carbon emission reduction cost-sharing such that both supply chain enterprises are better-off. We find that, while achieving the aim of carbon emission reduction, consumer preference for low-carbon products can benefit both supply chain enterprises. Numerical simulations show that carbon emission reduction cost-sharing increases the retailer's order quantity as well as the profit and hence there is an incentive for the two supply chain enterprises to cooperate.

Carbon emissions, technology upgradation and financing risk of the green supply chain competition

The major obstacle to reducing carbon emissions is the high cost of adopting clean energy, which reduces the market competitiveness of companies using clean energy. In this paper, we study the asymmetric duopoly models of two competing supply chains with different carbon emission technology. The financing risk of the supply chain's carbon emission technology investment could be available as complete or incomplete information to its competitor. We find that the financing risk of carbon emission technology upgradation does not affect either chain's choices of equilibrium quantities and prices in the complete information case. If this information is incomplete for the traditional supply chain, financing risk plays an important role in determining optimal quantities and optimal prices. To encourage the use of clean energy technology to reduce carbon emissions, government should use the per-product carbon emission tax to encourage the traditional supply chain to upgrade its carbon emission technology, and should encourage financial institutions to provide preferential loans to the supply chain that has carbon emission technology disadvantage in the market.

Production-Inventory Models considering different Carbon Policies: A review

Mitigating carbon emissions in supply chains has become an important issue in the recent era. Recently, companies are looking for solutions to lessen carbon emissions associated with their supply chains mainly due to carbon policies imposed by different regulatory bodies. Apart from regulations, competitive advantage, ISO certification, customer satisfaction also influence organisations to adopt green practices in their supply chains. Production and inventory are two important aspects of supply chains, and they contribute to a significant amount of cost and emissions. Organisations try to optimise their production and inventory related activities with operational adjustments while operating under different carbon policies. Over the last couple of years, authors have incorporated different carbon policies while optimising supply chains, especially production-inventory policies. This paper presents a review of quantitative models on green production-inventory problems considering different carbon policies and ends with suggestions for future research.

A fuzzy goal programme with carbon tax policy for Brownfield Tyre remanufacturing strategic supply chain planning

Abstract A comprehensive tyre remanufacturing supply chain strategic planning model is proposed under uncertainty and group decision making environment for reconfigurable supply chain to integrate business economics with carbon tax policy. To solve the proposed fuzzy multi-objective mixed integer programme model, a methodology is designed by combining various techniques. Numerical experiments were conducted to provide important policy insights for industry practitioners and the government such as (1) developed carbon tax-reward policy and carbon-tax- reward-forex policy other than carbon tax policy for future tyre remanufacturing supply chain carbon emission policies, (2) evaluated the possible influence of distance of used product suppliers from initial deposit facility on reconfigurable tyre remanufacturing strategic supply chain planning, (3) designed the measure of the greenness i.e. the greenness index of various tyre remanufacturing supply chains to compare various supply chains in the tyre remanufacturing industry, (4) suggested the foreign exchange (forex) reward rate for a tyre remanufacturing supply chain on basis of its greenness index in the tyre remanufacturing industry.

Effect of unidirectional transshipment on carbon emissions in supply chain from the perspective of non-cooperative game

Taking the supply chain system which consists of one supplier and two Newsboy retailers as the research object, this paper constructs the unidirectional transshipment game model based on non-cooperative framework and computes the optimal ordering quantities of two retailers. It is found that the equilibrium solution is existing and unique. Moreover, this paper studies the effect of transshipment price and carbon trading price on the optimal ordering quantities. Finally, we illustrate the effect of unidirectional transshipment on carbon emissions in supply chain via numerical example.

Supply Chain Coordination with Carbon Trading Price and Consumers’ Environmental Awareness Dependent Demand

Carbon emissions reduction in supply chain is an effective method to reduce the greenhouse effect. The paper investigates the impacts of carbon trading price and consumers’ environmental awareness on carbon emissions in supply chain under the cap-and-trade system. Firstly, it analyzes the centralized decision structure and obtains the requirements to coordinate carbon emissions reduction and order quantity in supply chain. Secondly, it proposes the supply chain coordination mechanism with revenue-sharing contract based on quantity discount policy, and the requirements that the contract parameters need to satisfy are also given. Thirdly, assuming the market demand is affected by consumer’s environmental awareness in addition form, the paper proposes the methods to determine the optimal order quantity and the optimal level of carbon emissions through model optimization. Finally, it investigates the impacts of carbon trading price on carbon emissions in supply chain. The results show that clean manufacturer’s optimal per-unit carbon emissions increase as the carbon trading price increases, while nongreen manufacturer’s optimal per-unit carbon emissions decrease as the carbon trading price increases. For the middle emissions manufacturer, the optimal per-unit carbon emissions depend on the relationship between the carbon trading price and the carbon reduction coefficient.

Product carbon footprint assessment supporting the green supply chain construction in household appliance manufacturers

Supply chain carbon emission is one of the factors considered in the green supply chain management. A method was designed to support the green supply chain measures based on the carbon footprint assessment for products. A research for 3 typical household appliances carbon footprint assessment was conducted to explore using product carbon footprint assessment method to guide the green supply chain management of the manufacturers. The result could reflect the differences directions on green supply chain management of manufacturers of washing machine, air conditioner and microwave, respectively That is, the washing machine manufacturer should pay attention to the low carbon activities in upstream suppliers in highest priority, and also the promotion of product energy efficiency. The air conditioner manufacturer should pay attention to the product energy efficiency increasing in highest priority, and the improvement of refrigerant to decrease its GWP. And the microwave manufacture could only focus on the energy efficiency increasing because it contributes most of the carbon emission to its carbon footprint. Besides, the representativeness of product and the applicability of the method were also discussed. As the manufacturer could master the technical information on raw material and components of its products to conduct the product carbon footprint assessment, this method could help the manufacturer to identify the effective green supply chain measures in the preliminary stage.

Constructing a process model for low-carbon supply chain cooperation practices based on the DEMATEL and the NK model

PurposeThis paper aims to introduce a joint DEMATEL and NK methodology to develop a process model for introducing and implementing relational supply chain practices for low-carbon supply chains. Using this process model as a guide, insights into specific practices and how to implement these relational practices to achieve competitive advantage across organizations are introduced.Design/methodology/approachLow-carbon cooperation practices framework based on the relational view is developed. A methodology based on DEMATEL and the NK model is used to construct a sequential process model for introducing and implementing these relational practices. Empirical data from three manufacturing organizations in China are utilized to validate the model.FindingsInitial results provide a sequence of relational practices for guiding those organizations and their suppliers for healthy and low-carbon development. Interdependencies between relational practices are analyzed and evaluated from four aspects. Insights into the broader application of the methodology and initial results from both a research and managerial perspective are presented, especially with consideration of the China, an emerging economy, context.Research limitations/implicationsThe methodology remains relatively abstract in nature, yet the tool can provide very useful interpretations and information for both researchers and practitioners.Practical implicationsThis paper stipulates that in addition to internal operational practices, the relational practices between buyer and supplier may be equally important to achieve a low-carbon outcome, especially in supply chain setting. This paper also shows that not only the relational practice itself but also the implementation sequence of the relational practices can relate to performance. According to the authors’ initial results, organizations in this study should first develop product development cooperation, then exchange carbon knowledge and implement effective governance and last build a trust relationship with its suppliers for low-carbon cooperation.Originality/valueThis is one of the few approaches that directly evaluates and identifies the interdependencies among relational practices and to construct a process model for introducing and implementing low-carbon supply chain cooperation. It is also the first time that the NK model has been integrated with DEMATEL. Focusing on Chinese supply chain carbon emissions concerns is also a unique perspective.