Sustainable supply chain management considering technology investments and government intervention
مدیریت پایدار زنجیره تأمین با در نظر گرفتن سرمایه گذاری های فن آوری و مداخلات دولت-2021
With the aggravation of the global environmental crisis, consumers are keen to use green products, and enterprises are more committed to technology investment and innovation to meet consumers’ green preferences. This study considers a supply chain system composed of one manufacturer and one retailer, where the manufacturer invests in green emission reduction technology (GERT) to reduce carbon emissions, and the retailer invests in information disclosure technology to transmit the higher greenness quality of products to consumers. We discuss the technology investment decisions and cooperation strategies between the manufacturer and the retailer, as well as the impacts of government regulations on supply chain members’ decisions. We consider three scenarios: decentralized, government intervention, and cost sharing and government intervention. We derive the optimal technology investment decisions of the manufacturer and retailer. In addition, we identify the conditions for the manufacturer to subsidize the retailer’s disclosure technology costs. The results show that a higher emission reduction subsidy encourages GERT investments and increases supply chain members’ profits. However, when the government sets a higher emission reduction standard, the subsidy neither increases the emission reduction nor benefits the retailer, and hurts the manufacturer’s profit. We also demonstrate that when there is cost sharing and government intervention, emission reduction and supply chain performance are always better than in the other scenarios.
Keywords: Emission reduction | Information disclosure | Technology investments | Government intervention | Sustainable supply chain management
Purchasings contribution to supply chain emission reduction
سهم خرید در کاهش انتشار زنجیره تامین-2021
Does environmental purchasing and supplier management (EPSM) help to reduce greenhouse gas (GHG) emissions in the supply chain and, thereby, mitigate climate change? And, if so, under which conditions? Taking these two questions as a starting point, we hypothesize that heightened environmental protection efforts targeting the upstream value chain should lead to a reduction of greenhouse gas emissions in the buying companies’ supply chain. We continue to delineate three contingency factors that might affect the relationship between EPSM and supply chain GHG emissions: The power of the buying firm over supply chain partners, prior experience in EPSM, and materiality of environmental supply chain management in a certain industry. We collect longitudinal data from 260 companies and analyze them using hybrid panel data analysis. We find that the increase of EPSM leads to a significant reduction of the GHG emission intensity of buying firms’ supply chains and that this reduction is stronger for companies operating in industries where emission management is more material.
Keywords: Sustainable supply chain management | Environmental purchasing | Environmental performance | Emission reduction | Climate change mitigation | Hybrid modelling
Multi-party coordination in sustainable supply chain under consumer green awareness
هماهنگی چند جانبه در زنجیره تأمین پایدار تحت آگاهی سبز مصرف کننده-2021
The rapid growth of the green market in recent years has motivated manufacturing companies to operate carbon abatement schemes for better sustainability. This paper investigates sustainability coordination among three major supply chain parties in the context of consumer green awareness by applying a Stackelberg game model. Instead of considering the manufacturer as the only party to operate carbon management schemes, this paper examines a model in which both the supplier and the manufacturer embark on green investment under make-to-order production. Meanwhile, the retailer considers the influence of green consumers on the demand rate and determines the order quantity for the manufacturer. This paper analyses the sustainability and profitability performance of the supply chain under centralised and decentralised scenarios, and applies the quantity discount and cost-sharing contracts to improve supply chain performance. It is shown that greener markets are more profitable and Pareto improvement can be achieved for all parties under a quantity discount contract. High investment cost hinders the company from achieving a higher emission reduction level. Further, increased consumer green awareness can motivate companies to achieve a higher emission reduction level, but not always lead to improved total carbon emission reductions resulting from the increase in product demand caused by green awareness. It also shows the importance of involving suppliers in green investment, due to their high carbon emission during the component production processes. The findings of this research provide theoretical support for supply chain parties to achieve better coordination in balancing profitability and carbon abatement.
Keywords: Multi-party supply chain | Newsvendor model | Stackelberg game | Consumer green awareness | Sustainability development
Carbon reduction decisions under progressive carbon tax regulations: A new dual-channel supply chain network equilibrium model
تصمیمات مربوط به کاهش کربن تحت مقررات مالیاتی پیش رونده کربن: مدل تعادل شبکه زنجیره تامین جدید دو کاناله-2021
Since the production process in manufacturing industry is one of the main sources of carbon emissions, most governments have enacted relevant carbon policies to encourage manufacturers to invest in green production technology and reduce carbon emissions. However, the effectiveness of the carbon policy deserves further investigation because the manufacturers focus more on economic profits in actual operations. For this purpose, this paper proposes a dual-channel supply chain network (DCSCN) equilibrium model based on variational inequality theory to examine progressive carbon tax mechanism design of the government and its impacts on the production/pricing and abatement level decisions of the manufacturers in the DCSCN. In addition, this paper also examines the influences of the online channel introduction on supply chain network equilibrium decisions, carbon emissions and profits. We employ the modified projection and contraction algorithm to obtain the numerical solutions for several examples, and analyze the impacts of the key parameters on the equilibrium decisions and derive several managerial insights. The results show that if the government sets the high-level carbon tax and the cut-off value in progressive carbon tax policy appropriately, it can induce the manufacturers to improve abatement level actively; meanwhile the profit maximization goal of the manufacturer and the whole DCSCN can be consistent with the government’s low-carbon emission target. Moreover, the introduction of online channel may depress the economic activities and lead to profit loss for the supply chain network but contributes to reducing the carbon emissions under progressive carbon tax policy. The conclusions may be useful for reference in the study of the low-carbon supply chain and the design of carbon emission reduction policy for government.
Keywords: Dual-channel supply chain network | Progressive carbon tax | Product abatement level | Variational inequality theory
Green and low carbon matters: A systematic review of the past, today, and future on sustainability supply chain management practices among manufacturing industry
موارد سبز و کم کربن: مروری سیستماتیک از گذشته ، امروز و آینده در مورد شیوه های مدیریت پایداری زنجیره تامین در صنعت تولید-2021
Journal Pre-proof Climate change has arisen as one of human beings most significant threats. A higher proportion of carbon dioxide emissions are produced from developing countries as manufacturing globalization requires more and more emerging nations. The predicament between carbon reduction and fast industrial development makes firms in developing countries reluctant to take thoughtful commitment and actions in carbon dioxide emission reduction in their global manufacturing practices. Sustainability, green, and low-carbon supply chain networks research is still also in its infant stage from a theoretical perspective and requires further research and development. Therefore this research aims to address the research question: “Why and how organizations are adopting sustainable strategies in developing countries to increase sustainable supply chain management practices in the manufacturing?”. In order to thoroughly analyse the literature, this paper used ATLAS. ti 9 software tools to save, identify, and assess the data for this study. We reviewed, compiled, and sorted papers from 326 publications for this article and then recognized 160 as critical to the work scope. The results reveal that the organizations current concentration is on improving internal environmental efficiency related to its mid-stream SCM activities. The introduction of environmental practices at the external level (downstream and upstream) is relatively limited, and few organizations are collaborating effectively with supply chain partners to improve their SSCM performance. The results also show that organizational performance, reputation/risk management, customer pressure, and top management support are primary motivators for organizations to embrace SSCM practices. The typology suggests that companies need to consider and recognize their key sustainability risk in the past, current, and future to have a simple organizational design to innovative management methods to handle their sustainable supply chain practices.
Keywords: Sustainability practices | Low carbon emissions | Green supply chain management | Green manufacturing
Improving sustainability and social responsibility of a two-tier supply chain investing in emission reduction technology
بهبود پایداری و مسئولیت اجتماعی یک زنجیره تأمین دو لایه سرمایه گذاری در فناوری کاهش انتشار-2021
This paper studies a retailer-dominated supply chain including a single upstream manufacturer that produces two substitutable products and a single downstream retailer that undertakes corporate social responsibility activities. The manufacturer is also regulated by a cap-and-trade policy. We first compare two optimization models for a decentralized system, one that does and one that does not incorporate emission reduction technology, to show that the profit of each system member in the former is higher than that in the latter, while the opposite is true for carbon emissions when the technology level invested by the manufacturer is higher than a threshold. To test the performance of the decentralized model that incorporates emission reduction technology, we model a centralized system and reveal that the system profit in the decentralized model is increased and the corresponding carbon emissions generated during production can be reduced. These findings motivate us to propose a revenue and cost-sharing contract to coordinate the decentralized system. The result shows that the economic and environmental sustainability of the decentralized system can be improved. Finally, several managerial implications are derived by conducting a numerical study.
Keywords: Retailer-dominated supply chain | CSR | Emission reduction technology | Sustainability | Coordination
Joint optimization of charging facility investment and pricing in automobile retail supply chain and coordination
بهینه سازی مشترک سرمایه گذاری و قیمت گذاری تسهیلات شارژ در زنجیره تامین خرده فروشی خودرو و هماهنگی-2021
In terms of energy-saving and emission reduction, and the low cost of using new energy vehicles (NEVs), it’s expected to have a huge potential market. To gain more market share and meet the increasingly strict emissions regulations, auto manufacturers and distributors as the main stakeholders of the automobile retail supply chain start to make charging facility investments (CFI) to promote the adoption of new energy vehicles (NEVs). However, there is no clearly dominant strategy regarding whether and how the auto manufacturer or the retailer should create a joint optimization between their CFI and pricing strategies. Thus, we investigate a four-stage automobile retail supply chain consisting of the government, one manufacturer, one retailer, and customers. The manufacturer and the retailer contemplate CFI while setting the wholesale and retail prices with consideration of the subsidy policy and the heterogeneous customer value towards NEVs. We use Stackelberg game paradigms to model the interactions between players in the automobile retail supply chain. Besides, we derive the thresholds which determine whether the CFI should be or carried out by the manufacturer or the retailer. We find the retailer has a last-mover advantage to conduct CFI. In addition, the manufacturer or the retailer should abandon CFI by himself to have a lift in certain cases. Furthermore, the manufacturer investment cost-sharing contract is designed to coordinate the automobile retail supply chain to make Pareto optimization. It means both the manufacturer’s and the retailer’s profits can improve.
Keywords: New energy vehicles | Charging facility investment | Joint optimization | Last-mover advantage | Cost-sharing contract
Conjugation of border and domestic carbon adjustment and implications under production and consumption-based accounting of India•s National Emission Inventory: A recursive dynamic CGE analysis
ترکیب تنظیمات کربن مرزی و داخلی و پیامدهای آن در حسابداری مبتنی بر تولید و مصرف موجودی انتشار ملی هند: یک تحلیل CGE پویا بازگشتی-2021
India initiated prudent measures voluntarily in the last two decades to combat against excessive carbon emissions. Acknowledging these initiatives, the study conjoins the policy of ‘border carbon adjustment (BCA)’ by the developed countries on Indian export with the ‘domestic carbon adjustment (DCA)’ by In- dia to evaluate its impact on emission reduction and the macroeconomy. The study also raises an in- consistency in this dual carbon adjustment under the production-based accounting (PBA) of the ‘national emission inventory (NEI)’ and conducts simulation experiments under the PBA and alternatively proposed consumption-based accounting (CBA) framework. The results reveal that the closer the rates of BCA and DCA the more effective the carbon adjustment schemes are. The dual carbon adjustment also found giv- ing better outcome under the CBA than PBA. The result of carbon-revenue recycling schemes suggest direct compensation to the enterprises for making the economy recover from the carbon tax-distortions in the most effective way.
keywords: تنظیم کربن مرزی (BCA) | تنظیم کربن داخلی (DCA) | موجودی ملی انتشار (NEI) | حسابداری مبتنی بر تولید (PBA) | حسابداری مبتنی بر مصرف (CBA) | تعادل عمومی محاسبه (CGE) | بازیافت درآمد کربن | هندوستان | Border Carbon Adjustment (BCA) | Domestic Carbon Adjustment (DCA) | National Emission Inventory (NEI) | Production-based Accounting (PBA) | Consumption-based Accounting (CBA) | Computable General Equilibrium (CGE) | Carbon Revenue Recycling | India
Emission reduction decision of agricultural supply chain considering carbon tax and investment cooperation
تصمیم کاهش انتشار زنجیره تأمین کشاورزی با توجه به مالیات کربن و همکاری در سرمایه گذاری-2021
As the core of civilian production and an indispensable part of the national economy, the agricultural industry plays a role in many aspects, but it also generates a large amount of carbon emissions that are harmful to the environment. A game model is established to compare the optimal decisions and proﬁts of retailers under three situations: whether to invest in emission reduction for manufacturers or not, and whether to invest in emission reduction under decentralized decision-making or centralized decision- making. The results show that when manufacturers cooperate with retailers, with the increase of in- vestment proportion, carbon emission reduction, market demand, manufacturer’s proﬁt and retail price show an upward trend, while retailer’s proﬁt decreases. However, when manufacturers and retailers form a centralized supply chain, the overall proﬁt of the supply chain can be improved. Therefore, when manufacturers and retailers cooperate to form a centralized supply chain, the supply chain can be optimized to achieve the dual objectives of protecting the environment and increasing proﬁts.© 2021 Elsevier Ltd. All rights reserved.
Keywords: Carbon tax | Investment cooperation | Agricultural supply chain | Carbon emission reduction
Carbon emissions of coal supply chain: An innovative perspective from physical to economic
انتشار کربن از زنجیره تامین زغال سنگ: یک دیدگاه ابتکاری از فیزیکی تا اقتصادی-2021
Carbon emissions reduction is not only physical, but also rooted in powerful economic actions. Coal- related emissions reduction strategies mainly focus on the physical quantity of carbon emissions, rather than the economic efﬁciency. So it’s necessary to strengthen the analysis of carbon emission reduction strategies from the perspective of economic value. Based on the theory of coal supply chain management, this study builds a carbon dioxide accounting model of China’s coal supply chain. The indicators for the process-based carbon emissions and carbon emissions per unit of economic value of various coal products are evaluated from the perspective of the whole coal life cycle. The results show that the processing and conversion of coal are the most important sources of carbon emissions in the coal life cycle. Coal-fueled electricity is the largest contributor to carbon emissions of all coal products. The coal-to-heat process has the highest carbon emissions per unit of economic value. Emission reduction strategies for coal supply chain are given in this research from both the physical and economic perspective. To realize emission reduction based on the physical perspective, it’s helpful to decrease coal consumption by reducing the proportion of coal-ﬁred power and the gas capture technology should be promoted to facilitate gas utilization. Implementing the coal transition to natural gas policy and developing heat recovery technology have an effect on carbon emissions reduction from the economic viewpoint of coal supply chain.© 2021 Elsevier Ltd. All rights reserved.
Keywords: Coal supply chain | Life cycle assessment | Carbon footprint | Carbon emission