production lot sizing and carbon emissions under cap and trade and carbon tax regulations cap and trade and carbon tax are two emission regulations widely used to curb the carbon emissions generated from firms based on economic order quantity eoq model this paper examines the production lot sizing issues of a firm under these two regulations respectively the optimal lot size and emissions under the two regulations are achieved we then investigate the impacts of production and regulation parameters on the optimal lot size and emissions furthermore we compare the firm s optimal carbon emissions under the two regulations it is found that under the cap and trade regulation the firm s decisions of the optimal emissions as well as permits trading depend on the differentiated permits trading prices if setup incurs the same cost as holding incurs per unit of generated emissions both regulations always lead to the same optimal emissions which is also equal to that without emission regulation otherwise neither regulation always leads to lower emissions than the other does

effects of cost changes on oligopolists profits this paper considers cost changes affecting all firms in a constantreturns to scale cournot oligopoly cost increases may paradoxically benefit some or even all firms whether a firm benefits or is harmed depends only on whether its market share exceeds a threshold level s on whether industry costs increase or decrease on the number of firms and on the elasticity of the demand curve s slope or equivalently the fraction of cost changes that are passed on conditions where industry structure alone determines the effect of cost changes on firms profits and conditions where cost increases necessarily harm some firms are developed this paper considers the effects of a change in cost on outputs and profits in an industry composed of firms with constant returns to scale these effects are easy to see in the extreme cases of monopoly and perfect competition but

indirect taxation and undesirable competition abstract this paper studies undesirable competition in an asymmetric oligopoly under ad valorem taxation we show that when the cost advantage of efficient firms is large both the entry of and the cost reduction in efficient firms raise social welfare but unexpectedly hurt consumers moreover we find that unit taxation yields higher consumer surplus in equilibrium and it could also be welfare superior to ad valorem taxation under certain conditions

statistical moments analysis of production and welfare in multi product cournot oligopoly abstract our context involves n cournot oligopolists producing m products at constant marginal costs when preferences are quasi linear we identify relationships between second moments of unit costs and second moments of firm level production for example a larger variance in unit costs of a product increases own output variance and the variance of any other output we also investigate how second moments of unit costs affect industry cost efficiency industry costs can rise if the wrong firm secures a cost reduction for quadratic preferences it is shown that zhao s zhao j 2001 a characterization for the negative welfare effects of cost reduction in cournot oligopoly international journal of industrial organization 19 455 469 3 4 march share criteria for an increase in unit costs to increase welfare extend to the multi product setting

split award auctions for supplier retention to stay abreast of current supply market pricing it is common for procurement managers to frequently organize auctions among a pool of qualified suppliers the supply base sole awards can alienate losing suppliers and cause them to defect from the supply base to maintain the supply base and thereby control the high costs of finding and qualifying new suppliers buyers often employ split awards which in turn inflate purchase costs this results in a trade off that we investigate in an infinite horizon stationary setting in which the relative cost position of each supplier is randomly drawn in every period we characterize the optimal split award that minimizes long run costs purchasing and qualification and show that maintaining a constant supply base size using a qualify up to policy is optimal for the buyer we find that neither the extent of multisourcing nor the buyer s value of split awards compared with winner take all auctions are monotonic in the qualification cost and that split award auctions can increase ex ante system buyer and supplier benefits simultaneously to our knowledge this is the first paper studying split award auctions for supply base maintenance and it will hopefully galvanize further research on this important topic this paper was accepted by yossi aviv operations management

the sustainable supply chain network competition with environmental tax policies abstract this paper captures different environmental tax policies in a multi tiered supply chain network competition context we derive the governing equilibrium conditions for the noncooperative game theory models for each firm and provide the equivalent variational inequality formulations the numerical examples investigate the impacts of emission tax policies and product differentiation on the competing firms and compare the effects of different environmental policies flat emission tax rates progressive emission taxes and the government command and control regulations with emission standards on equilibrium product demands prices total emissions and overall profits the computational results indicate that the implementation of environmental tax policies along with an increase in consumers environmental concerns can not only motivate the firms to perform sustainable operations but also reduce the total carbon footprint furthermore the low cost progressive emission tax policies can be as effective as the high flat emission tax rate in terms of reduction in carbon footprint therefore the model developed in this paper can be used by the policymakers and the firms to evaluate the effects of different environmental tax policies in a supply chain competition context

environmental tax on products and services based on their carbon footprint a case study of the pulp and paper sector the main aim of this work is to define an environmental tax on products based on their carbon footprint we examine the relevance of life cycle analysis lca and environmentally extended input output analysis eio as methodological tools for identifying the emission intensities on which the tax is based the price effects of the tax and the policy implications of considering non co2 greenhouse gases ghg are also analyzed the results from the case study on pulp production show that the environmental tax rate based on lca 1 8 is higher than both eio approaches 0 8 and 1 4 for product and industry respectively but they are of the same order of magnitude although lca is more product specific and provides a more detailed analysis we recommend eio as a more relevant approach to applying an economy wide environmental tax if an environmental tax were applied to non co2 ghg instead to co2 alone the tax would greatly affects sectors such as agriculture mining of coal extraction of peat and food therefore it is worthwhile for policy makers to pay attention to the implications of considering either a co2 tax or a global ghg emissions tax in order to make their policy measures effective and meaningful

sequential procurement auctions abstract two auctions are held in sequence with the possibility of learning between the second and the first the buyer optimally chooses to discriminate against the winner of the first auction in the second the optimal mechanism has a discontinuity in the winner s second bid this strictly dominates a sequence of independent sealed bid auctions

research advances in environmentally and socially sustainable operations abstract consumers and governments are pressuring firms to strike a balance between profitability and sustainability however this balance can only be maintained in the long run if the firm can take a holistic approach to sustain the financial flow profit resource flow planet and development flow people for the entire ecosystem comprising poor producers in emerging developing markets global supply chain partners consumers in developed countries and the planet by considering the flows associated with different entities within the ecosystem we classify and summarize recent operations research management science or ms research developments also we identify several gaps for future research in this important area

the design of procurement contracts this paper investigates the interaction between bidding for procurementprograms and fractional buys this problem is analyzed from the standpoint of a cost minimizing procuring agent it is shown that underimperfect competition a multiple source purchase is generally preferred to a single source contract similarly the author demonstrates that a strictly intermediate cost sharing arrangement i e an incentive contract dominates either the cost plus or the firm fixed price arrangements copyright 1986 by american economic association

second sourcing and the experience curve price competition in defense procurement we examine a dynamic model ofprice competition in defense procurement that incorporates the experience curve asymmetric cost information and the availability of a higher cost alternative system we model acquisition as a two stage process in which initial production is governed by a contract between the government and the developer competition is then introduced by an auction in which a second source bids against the developer for remaining production we characterize the class of production contracts that are cost minimizing for the government and that induce the developer to reveal private cost information when high costs are revealed these contracts result in a credible cutoff of new system production in favor of the still higher cost alternative system

when different market concentration indices agree abstract the herfindahl hirschman entropy and n firm indices may not agree when comparing market concentrations for different oligopoly markets the majorization pre ordering is shown to be both necessary and sufficient for all to agree

welfare reductions from small cost reductions in differentiated oligopoly abstract this paper compares the welfare effects of cost reductions in differentiated bertrand and cournot oligopolies using a linear demand system the paper provides the critical levels of output shares below which a small cost reduction by a bertrand or cournot firm reduces welfare it then shows that the critical value is larger under bertrand competition than cournot competition

production and transportation outsourcing decisions in the supply chain under single and multiple carbon policies abstract cap and trade and carbon tax are the two main policies to reduce carbon emissions different from the previous literature and practice this paper examines the production and transportation outsourcing problems of a two echelon supply chain under the cap and trade policy and joint cap and trade and carbon tax policy enterprise operations are divided into the order stage and transportation outsourcing decision stage in the order stage the retailer sets his order schedule for the manufacturing plant for fulfillment and in the transportation outsourcing decision stage the manufacturer decides the optimal freight volume based on energy consumption furthermore we construct a basic model without a carbon policy and two extended models with carbon policies and the optimal solutions of the models are solved numerical examples are provided and the three models are compared the results indicate that the extended model with carbon policies is more beneficial for emissions reduction and the effect of emissions reduction gradually becomes smooth as the carbon price increases the joint cap and trade and carbon tax policy is more effective for emissions reduction especially when the carbon price is lower these findings will be helpful to policy makers and managers

choosing a licensee from heterogeneous rivals we examine a rm that can license its production technology to a rival when rms are heterogeneous in production costs we show that a complete technology transfer from one rm to another always increases joint pro t under weakly concave demand when at least three rms remain in the industry a jointly pro table transfer may reduce social welfare although a jointly pro table transfer from the most e cient rm always increases welfare we also consider two auction games under complete information a standard rst price auction and a menu auction by bernheim and whinston 1986 with natural re nement of equilibria we show that the resulting licensees are ordered by degree of e ciency menu auction simple auction and joint pro t maximizing licensees in weakly descending order

imposing emission trading scheme on supply chain separate and joint implementation abstract in response to global warming it is urgent to control and reduce greenhouse gas ghg emissions especially from the supply chain perspective the most often discussed topic in this domain indicates that emission trading scheme ets could be employed as one of policy instruments for supply chain emissions management via mathematical models scholars have shown that the employment of emission trading is affecting supply chain performances both environmental and economic in different levels however previous literature focus on the cost effectiveness analysis only from the mathematical aspect to provide policy makers and companies with the theoretical bases on this hot topic it is significant to discuss how ets one of market based instruments could be imposed in the context of supply chain from the mechanical point of view by incorporating ideas from relevant literature this paper generates two concepts modes in imposing ets on supply chain jointly imposed supply chain emission trading e g jointly imposed sc ets and separately imposed supply chain emission trading e g separately imposed sc ets it illustrates the working principles of both concepts modes and conducts a sandbox example to analyze the cost effectiveness of them furthermore this paper discusses the challenges and opportunities of implementing two modes from practical aspects results of quantitative analysis and discussion show that for the sake of both policy makers and supply chain companies the separately imposed sc ets allowing selling permits would be so far the better mode to manage supply chain ghg emissions compared to the jointly imposed sc ets

non stationary stochastic inventory lot sizing with emission and service level constraints in a carbon cap and trade system firms worldwide are taking major initiatives to reduce the carbon footprint of their supply chains in response to the growing governmental and consumer pressures in real life these supply chains face stochastic and non stationary demand but most of the studies on inventory lot sizing problem with emission concerns consider deterministic demand in this paper we study the inventory lot sizing problem under non stationary stochastic demand condition with emission and cycle service level constraints considering carbon cap and trade regulatory mechanism using a mixed integer linear programming model this paper aims to investigate the effects of emission parameters product and system related features on the supply chain performance through extensive computational experiments to cover general type business settings and not a specific scenario results show that cycle service level and demand coefficient of variation have significant impacts on total cost and emission irrespective of level of demand variability while the impact of product s demand pattern is significant only at lower level of demand variability finally results also show that increasing value of carbon price reduces total cost total emission and total inventory and the scope of emission reduction by increasing carbon price is greater at higher levels of cycle service level and demand coefficient of variation the analysis of results helps supply chain managers to take right decision in different demand and service level situations

responsible production policies with substitution and carbon emissions trading abstract this paper considers a production model involving a manufacturer that uses two different technologies the green technology and the standard technology the green product produced by the green technology can be used as a substitute for the traditional product produced by the standard technology but not vice versa three models are considered the first model concerns with product substitution only and serves as a benchmark model for the next two models the carbon emission allowance model and the carbon emission trading model the second model extends the product substitution model by imposing an upper limit on the total carbon emission allowance for each firm the third model extends the second model to cater for carbon emission trading for the carbon emission allowance model analytical result shows that the optimal production quantity of any product depends on both its total carbon emission allowance quota and its unit carbon emission profit and the effect of substitution improves the service level the expected profit of the manufacturer and the green of product mix for the carbon emission trading model analytical result shows that whenever the production quantity of any product is optimal the marginal profit of production i e the additional profit obtained by producing an extra item should be equal to the unit price of carbon emission trading within the market moreover the optimal policy of either model reduces the total amount of carbon emission thus producing less pollution to the environment lastly the optimal profits obtained by using the carbon emission trading model are larger than the corresponding optimal profits obtained by using the carbon emission allowance model

carbon emissions and energy effects on a two level manufacturer retailer closed loop supply chain model with remanufacturing subject to different coordination mechanisms abstract this paper presents two models classical and vmi cs coordination for a two level closed loop supply chain with a manufacturer and a retailer with a facility to remanufacture used items the paper considers three critical environmental issues which are the energy used in production manufacturing and remanufacturing processes ghg emissions from production and transportation activities subject to a penalty tax and the number of times to remanufacture recover a used item numerical results show that the traditional optimization approach which minimises the sum of inventory related costs suggested less remanufacturing fewer recovery times and more ghg emissions and energy usage a result of operating at high production rates the vmi cs model was shown to be more economical than the classical model for a wide range of manufacturing rates but not necessarily a more environmentally responsible choice an extensive numerical analysis was conducted to enrich the discussion and to draw some managerial insights on how to make environmentally conscious decisions

joint production and pricing decisions for multiple products with cap and trade and carbon tax regulations abstract cap and trade and carbon tax regulations are the two main low carbon policies to curb carbon emissions this paper studies the joint production and pricing problem of a manufacturing firm with multiple products under cap and trade and carbon tax regulations and compares the effects of the two regulations on the total carbon emissions the firm s profit and social welfare the firm faces price sensitive demands and the demands for these products are independent firstly we find that the optimal number of products to be produced under cap and trade regulation carbon tax regulation is determined by the emission trading prices and the cap tax rate secondly we detect that the optimal cap tax rate is decreasing increasing or constant in the environmental damage coefficient finally we discover that the social welfare under carbon tax regulation is not less than that under cap and trade regulation although there is neither one regulation always inducing more profit and having advantages in curbing carbon emissions than the other one

low carbon production with low carbon premium in cap and trade regulation abstract manufacturers face a choice of whether to reduce their carbon emissions through employing low carbon technologies though many carbon regulations are set up to curb carbon emissions some firms choose not to take low carbon production because the additional cost of low carbon progressing is high however low carbon production would be a better alternative when we consider consumer s low carbon premium in the cap and trade system in this work we solve the manufacturer s multi product joint pricing and production problem when consumers value the low carbon product higher than the ordinary product our findings provide firms with conditions where low carbon production is profitable furthermore we find that the cap and trade would constrain the total carbon emissions and promote low carbon production simultaneously under certain conditions

design of sustainable supply chains under the emission trading scheme increase in environmental concerns together with legislations are forcing industries to take a fresh look at the impact of their supply chain operations on the environment this paper introduces a mixed integer linear programming based framework for sustainable supply chain design that considers life cycle assessment lca principles in addition to the traditional material balance constraints at each node in the supply chain indeed the framework distinguishes between solid and liquid wastes as well as gaseous emissions due to various production processes and transportation systems the framework is used to evaluate the tradeoffs between economic and environmental objectives under various cost and operating strategies in the aluminum industry the results suggest that current legislation and emission trading schemes ets must be strengthened and harmonized at the global level in order to drive a meaningful environmental strategy moreover the model demonstrates that efficient carbon management strategies will help decision makers to achieve sustainability objectives in a cost effective manner

awarding monopoly franchises the authors analyze how to award a monopoly franchise when the objective is to maximize expected consumers surplus net of transfer payments to the producer potential producers initially possess independent private information about uncertain production costs only the chosen producer subsequently observes realized production costs after awarding the franchise to the producer with the lowest expected costs prices are optimally set above realized marginal cost these ex post distortions foster more competitive bidding ex ante the distortions for any bid cost pair are invariant to the number of bidders n though expected distortions and profits decline with n copyright 1987 by american economic association

inventory management under joint product recovery and cap and trade constraints abstract the influence of environmental legislation in inventory control policies is explored previous work on product recovery is extended using the introduction of a cap and trade mechanism in an infinite horizon inventory system in which demand and returns are uncertain demand is met through two different sources namely manufacturing and remanufacturing which differ in cost and greenhouse gas emissions the main contributions of this paper are 1 comparison of system operation in terms of cost and environmental performance under conventional and green inventory policies and 2 managerial insights into the structure of green inventory policies to illustrate the impact of a cap and trade scheme a numerical example is used we solved the problem as a markov decision process and characterized the inventory policies based on the optimal replenishment strategy we also conducted a sensitivity analysis to examine the effect of underlying environmental parameters such as the emission cap and the allowance price in the policy structures the results indicate that decisions are sensitive to carbon prices the inventory policy could play an important role in compliance with environmental legislation although there is threshold carbon price beyond which the company must focus on strategic decisions rather than tactical decisions

do carbon taxes work analysis of government policies and enterprise strategies in equilibrium abstract to achieve the goal of carbon emission reduction a number of countries have implemented carbon tax policies and carbon pricing has become an important tool this paper discusses the interactions between a government and an enterprise for implementing carbon taxes over time or by level of tax considering greenhouse gas emission we examine the impacts of various carbon tax policies on enterprises investments in new technology their reductions in production quantity and governments tax remittances a case study of the strategic responses of three firms in taiwan s electronics cement and steel industries to two carbon emission policies promulgated by government shows that appropriate levels of tax can induce an enterprise to alter its production processes to achieve emission reduction as part of a long term business strategy

a note on price and quantity competition in differentiated oligopolies abstract in this note we show that the results developed in n singh and x vives 1984 rand j econ 15 546 554 are sensitive to the duopoly assumption if there are more than two firms prices may be higher under price competition than under quantity competition this will be the case if quality differences are large and goods are complements if goods are substitutes high quality firms may earn higher profits under price competition than under quantity competition hence it is not evident which kind of competition is more efficient journal of economic literature classification numbers d43 l13

evaluating renewable portfolio standards and carbon cap scenarios in the u s electric sector this report examines the impact of renewable portfolio standards rps and cap and trade policy options on the u s electricity sector the analysis uses the national renewable energy laboratory s regional energy deployment system reeds model that simulates the least cost expansion of electricity generation capacity and transmission in the u s to examine the impact of a variety of emissions caps and rps scenarios both individually and combined the generation mix carbon emissions and electricity price are examined for various policy combinations simulated in the modeling

optimal production planning with emissions trading emissions trading is a market based mechanism for curbing emissions and it has been implemented in europe north america and several other parts of the world to study its impact on production planning we develop a dynamic production model where a manufacturer produces a single product to satisfy random market demands the manufacturer has access to both a green and a regular production technology of which the former is more costly but yields fewer emissions to comply with the emissions regulations the manufacturer can buy or sell the allowances in each period via forward contracts in an outside market with stochastic trading prices while needing to keep a nonnegative allowance account balance at the end of the planning horizon we first derive several important structural properties of the model and based upon them we characterize the optimal emissions trading and production policies that minimize the manufacturer s expected total discounted cost in particular the optimal emissions trading pol

sustainable fashion supply chain management under oligopolistic competition and brand differentiation abstract in this paper we developed a new model of oligopolistic competition for fashion supply chains in the case of differentiated products with the inclusion of environmental concerns the model assumes that each fashion firm s product is distinct by brand and the firms compete until an equilibrium is achieved each fashion firm seeks to maximize its profits as well as to minimize its emissions throughout its supply chain with the latter criterion being weighted in an individual manner by each firm the competitive supply chain model is network based and variational inequality theory is utilized for the formulation of the governing nash equilibrium as well as for the solution of the case study examples the numerical examples illustrate both the generality of the modeling framework as well as how the model and computational scheme can be used in practice to explore the effects of changes in the demand functions in the total cost and total emission functions as well as in the weights

delay in payments a strategy to reduce carbon emissions from supply chains abstract the purpose of this paper is to study the effects of various scenarios of delay in payments a form of trade credit by a buyer after receiving items while including various costs such as fuel cost the costs of carbon emissions from manufacturing and transportation activities order cost and setup cost in a two echelon coordinated supply chain the model developed optimizes the environmental and economic performance of a supply chain the study presents a comparison of different scenarios through numerical examples and sensitivity analyses the main contribution of this paper is the joint consideration of delays in payments and the costs of transportation cost and carbon emissions the model has been tested with numerical examples and sensitivity analyses the findings showed that adopting delays in payments improves both environmental and economic performance of a supply chain the analyses also showed that optimizing one of the parameters from the production rate the length of delay in payments or the lot size provides the optimal solution for carbon emissions and the system cost of a supply chain this flexibility makes the model easy to use by practitioners

welfare effects of taxation in oligopolistic markets this paper discusses how marginal costs of public funds are related to various market characteristics under imperfect competition under a quite general tax scheme these costs turn out to be lower the wider the firms product ranges the lower the degree of market concentration and the lower the degree of product differentiation moreover marginal costs of taxation are lower in bertrand markets compared to cournot markets in cases when marginal costs of public funds cannot easily be assessed we ask if pass through rates can provide useful information for policy makers the market characteristics that we analyze are shown to have opposite effects on pass through and marginal costs of public funds it is also demonstrated that the marginal cost of public funds is generally lower for ad valorem taxes than for unit taxes the main results are based on a linear demand system but a number of extensions confirm that our main results are reasonably robust

production optimization considering environmental performance and preference in the cap and trade system abstract many countries like china are in a dilemma between economic growth and environmental deterioration e g smog weather simultaneously a growing people concern the product s environmental performance along with their improving environment awareness this paper focuses on the impacts of carbon footprint and low carbon preference on the production decision of emission dependent firms in the cap and trade system the cap and trade system uses the total cap to attain environmental goals and allows trade to achieve the effective scheduling through market regulation under this mechanism through analyzing the influence of carbon footprint and low carbon preference on the market supply and demand we build a production optimization model and develop the optimal decisions several interesting management insights on environmental preference and policy are concluded

the impact of carbon policies on supply chain design and logistics of a major retailer abstract the energy used to move freight comprised about 17 of all the energy consumed in the united states in 2010 this percentage was an increase from 8 7 in 1970 even though fuel efficiency gradually improved over the period one major reason of this phenomenon is that the longer supply chains of many industries caused by globalization increase freight movement various carbon policies have been discussed and even implemented for some industry sectors in the european union to reduce carbon emissions however the emissions of surface transportation have not been well studied this paper investigates three of the most common carbon policies carbon emission tax inflexible cap and cap and trade the impact on a company may include the redesign of its supply chains and different choices of transportation modes truck rail or waterway this paper proposes optimization models for major retailers who make a huge contribution to freight movement to design their supply chains under various carbon policies the results from the models can help policy makers to predict the impact of policies on overall emissions in the freight transportation sector the model may also be incorporated into the integrated assessment models for climate change analyses furthermore a sensitivity analysis is conducted to study the impact of the policy parameters on carbon emissions and logistics cost this research uses the supply chain of a major u s retailer i e wal mart to demonstrate how to use the models and conduct the sensitivity analysis in order to realize significant emission reduction a redesign of supply chains of major retailers is necessary and will be triggered only by a high carbon tax rate a high carbon price or a very strict carbon cap which all may involve high social and or economic complexity numerical experiments show that different policies have different impacts on the costs and the effectiveness of emission reduction how to choose policy parameters is critical to the effectiveness of a carbon policy the different sensitivity also implies different challenges during the implementation of the policies such as the high cost preventing retailers from accepting any carbon taxes and the difficulty of reaching an agreement on the carbon caps between retailers and policy makers

low carbon product selection with carbon tax and competition effects of the power structure abstract this paper considers product selection strategies of two competitive firms in the presence of carbon tax optimal strategies are developed for product selection of the firm with two game structures namely the nash game and the stackelberg game by which the paper conducts an analytical examination of the effect of power structure on the product selection strategy of the firm over various levels of carbon tax rate the critical managerial findings derived with the studies are as follows i two competitive firms will always adopt the same product strategy with the nash pricing game regardless of the carbon tax rate which is in contrast to that they will adopt a differentiated product strategy over the low carbon tax rates with the stackelberg pricing game ii two competitive firms will both select the common or low carbon product with randomness over the middle carbon tax rates with the nash product selection game which is contrast to that the randomness in their product selections is removed with the stackelberg product selection game which leads to an existence of the pure strategy stackelberg equilibrium for their product selection strategies over the middle carbon tax rates the inherent mechanisms leading to these essential differences are also discussed in the paper

the effects of environmental quality misperception on investments and regulation abstract this paper analyzes whether consumers misperception on the quality of the product influences firms investment choices we examine a setup with horizontal and vertical green differentiation where consumers are heterogeneous in the exogenous perception of environmental quality demands true qualities and profits are increasing in the perception of higher quality while the investment in green quality is high for high and low degrees of product substitutability we further consider the introduction of either an emission tax or an environmental standard both interventions increase the investment in green quality we show that for low marginal damages the environmental standard increases quality while taxation is more effective when the environmental damage is large

tactical supply chain planning under a carbon tax policy scheme a case study greenhouse gas emissions are receiving greater scrutiny in many countries due to international forces to reduce anthropogenic global climate change industry and their supply chains represent a major source of these emissions this paper presents a tactical supply chain planning model that integrates economic and carbon emission objectives under a carbon tax policy scheme a modified cross entropy solution method is adopted to solve the proposed nonlinear supply chain planning model numerical experiments are completed utilizing data from an actual organization in australia where a carbon tax is in operation the analyses of the numerical results provide important organizational and policy insights on 1 the financial and emissions reduction impacts of a carbon tax at the tactical planning level 2 the use of cost emission tradeoff analysis for making informed decisions on investments 3 the way to price carbon for maximum environmental returns per dollar increase in supply chain cost

economies of feedlot scale biosecurity investment and endemic livestock disease infectious livestock disease creates externalities for proximate animal production enterprises the distribution of production scale within a region should influence and be influenced by these disease externalities taking the distribution of the unit costs of stocking an animal as primitive we show that an increase in the variance of these unit costs reduces consumer surplus the effect on producer surplus total surplus and animal concentration across feedlots depends on the demand elasticity a subsidy to smaller herds can reduce social welfare and immiserize the farm sector by increasing the extent of disease while nash behavior involves excessive stocking disease effects can be such that aggregate output declines relative to first best disease externalities can induce more adoption of a cost reducing technology by larger herds so that animals become more concentrated across herds for strategic reasons excess overall adoption of the innovation may occur larger herds are also more likely to adopt biosecurity innovations explaining why larger herds may be less diseased in equilibrium

idiosyncratic shocks in an asymmetric cournot oligopoly abstract several authors have studied the impact of a marginal cost variation in the cournot model on consumers surplus firms profits and social welfare we unify and extend the results when all marginal costs change simultaneously hence we bring together two strands of literature respectively on mean preserving and subgroup common shocks the effect of any shock is decomposed into two parts an average impact ai and a heterogeneity effect he the former improves welfare if the inverse demand function is concave enough and the market is concentrated enough the latter when the diffusion of the shock is negatively correlated with the market share distribution finally we apply our decomposition to various special cases

r d induced industry polarization and shake outs abstract we consider the standard two stage game of r d and cournot competition with ex ante identical firms but depart from the literature in assuming that r d is characterized by mildly instead of strongly decreasing returns to scale we establish that only extreme r d levels are possible at equilibrium and that for a broad range of parameters equilibria are asymmetric in r d levels possibly leading one firm to endogenously exit this provides a simple link between returns to scale in r d and industry polarization including shake outs a novelty is that exit may be triggered by positive opportunities in a strategic setting given the original nature of our r d equilibrium a complete welfare analysis is conducted including a possible role for r d subsidies

emission policies and their analysis for the design of hybrid and dedicated closed loop supply chains abstract government legislation and consumer awareness on carbon emissions have required industries to seek alternative ways to reorganize their supply chains therefore industries have to consider not only the activities in the forward supply chain but also in the reverse supply chain an integrated supply chain that combines the activities of both the forward and reverse supply chains is referred to as the closed loop supply chain clsc there are two main types of clsc structures hybrid and dedicated in this research we analyze the effect of carbon emissions consideration on the design of both hybrid and dedicated clscs in particular we develop a set of integrated mixed integer linear programming milp models to quantify and compare both of the environmental and economic impacts of carbon emissions policies carbon cap carbon tax and carbon cap and trade and market factors scale effect product return rate and the customer demand on the design of clscs with respect to both clsc structures our analysis shows that when market conditions are considered total cost and total emissions are more sensitive to customer demand than to the scale effect and the product return rate when an industry faces fluctuation on the quantity of the returned products adopting a dedicated clsc would lead to a lower total cost under cap and trade policy dedicated clsc can produce less total emissions we also observe that dedicated clsc is more cost efficient under carbon cap policy and hybrid clsc is more emissions efficient when the carbon tax is introduced

dual sourcing in repeated procurement competitions the issue of maintaining competition over time in a repeated procurement setting is important for both government and private sector buyers the u s department of defense has experimented with splitting production quantities between two or more contractors in an effort to make government business more attractive for the private sector this paper analyzes the effectiveness of this strategy we find that in a two period model with production learning and entry costs dual sourcing even for the specific mechanism we consider in some cases reduces overall expected cost moreover if buyers are unable to commit to long term contracts or suppliers are unable to bid away anticipated gains the incentives to dual source are often stronger

the transition of germany s energy production green economy low carbon economy socio environmental conflicts and equitable society low carbon transitions have been predominantly analysed using quantitative methods mostly building on present and forecasted data of social metabolism this paper addresses both the economic and social dimensions of low carbon emissions by analysing the presence of socio environmental conflicts in germany these conflicts appear to be a consequence of unsustainable policies targeting firms planning and behaviour mainly based on neoclassical economic thinking and various stakeholder groups that oppose carbon intensive businesses by applying a delphi method with 18 experts the authors analyse 117 socio environmental conflicts e g derived from extractive activity energy production and infrastructure projects in germany most of these conflicts include the struggle of various society groups to achieve a low carbon economy but also a more equitable society the analyses presented in this paper shows that germany provides both the best and the worse of achieving low carbon paths a significant investment into renewable energy but also a strong dependency on lignite which supplies the most polluting power stations of europe by addressing the problem from a historical perspective the authors demonstrate how carbon intensive extractive activity has been one of the major causes for environmental activism and protest in both socialist and capitalist societies

an analysis of risk and return in the defense market its impact on weapon system competition with growing austerity pressures from the administration congress and the general public the government s procurement policy has called for increased use of dual source competition as a means of reducing acquisition costs in practice however this policy has produced mixed results the cause seems to be an inadequate understanding of the peculiarities of competition in the government s market this paper examines the risk and return available in the defense market and relates it to the industry s propensity to compete the results show that intelligent observation of the industry s capacity utilization rate would contribute to the development of a more efficient acquisition policy

managing carbon footprints in inventory management abstract there is a broad consensus that mankind must reduce carbon emissions to mitigate global warming it is generally accepted that carbon emission trading is one of the most effective market based mechanisms to curb the amount of carbon emissions this paper investigates how firms manage carbon footprints in inventory management under the carbon emission trading mechanism we derive the optimal order quantity and analytically and numerically examine the impacts of carbon trade carbon price and carbon cap on order decisions carbon emissions and total cost we make interesting observations from the numerical examples and provide managerial insights from the analytical results

a characterization for the negative welfare effects of cost reduction in cournot oligopoly abstract this paper characterizes the welfare effects of cost reductions in a cournot model with linear costs under linear demand a small reduction in a firm s marginal cost reduces welfare if and only if its market share is less than 1 2n 2 or equivalently its marginal cost exceeds a critical level determined by the market a large cost reduction by the firm increases welfare if and only if its magnitude is at least twice the difference between the current marginal cost and its critical value the paper also extends the results to non linear demand but the characterizations become less tractable

closed loop supply chain network design with multiple transportation modes under stochastic demand and uncertain carbon tax abstract we optimize the design of a closed loop supply chain network that encompasses flows in both forward and reverse directions and is subject to uncertainty in demands for both new and returned products the model also accommodates a carbon tax with tax rate uncertainty the proposed model is a three stage hybrid robust stochastic program that combines probabilistic scenarios for the demands and return quantities with uncertainty sets for the carbon tax rates the first stage decisions are facility investments the second stage concerns the plan for distributing new and collecting returned products after realization of demands and returns and the numbers of transportation units of various modes are the third stage decisions the second and third stage decisions may adjust to the realization of the carbon tax rate for computational tractability we restrict them to be affine functions of the carbon tax rate benders cuts are generated using recent duality developments for robust linear programs computational results show that adjusting product flows to the tax rate provides negligible benefit but the ability to adjust transportation mode capacities can substitute for building additional facilities as a way to respond to carbon tax uncertainty

carbon pricing versus emissions trading a supply chain planning perspective abstract carbon pricing taxes and carbon emissions trading are two globally practiced carbon regulatory policy schemes this paper presents an analytical supply chain planning model that can be used to examine the supply chain performance at the tactical operational planning level under these two policy schemes model implementation and analyses are completed using actual data from a company operating in australia where these environmental regulatory policies are practiced numerical results provide important managerial and practical implications and policy insights in particular the results show that there are inflection points where both carbon pricing and trading schemes could influence costs or emissions reductions an erratic nonlinear emissions reduction trend is observed in a carbon pricing scheme as the carbon price increases steadily whereas emissions reduction in a carbon trading scheme follows a relatively linear trend with a nonlinear cost increase overall a carbon trading mechanism although imperfect appears to result in better supply chain performance in terms of emissions generation cost and service level even though a carbon tax may be more worthwhile from an uncertainty perspective as emissions trading costs depend on numerous uncertain market conditions

the impact of carbon pricing on a closed loop supply chain an australian case study concerns about industrial and supply chain implications on our natural environment have existed for decades climate change and greenhouse gas emissions have caused countries to implement various instruments ranging from taxes permits and voluntary incentives to required regulatory policies given this environment we develop a unified optimization model for a closed loop supply chain in which the carbon emission is expressed in terms of dollar carbon cost this study is one of the first to evaluate the forward and reverse supply chain influences on the carbon footprint a comparative analysis is completed with a decomposition of cost and environmental influences across supply chain functions we utilize data from a company located in australia where the government is currently introducing a carbon pricing scheme we find that variations in cost and environmental impacts occur over ranges of carbon pricing characteristics and patterns of the numerical results over these ranges provide insights for corporate key strategies and potential additional government policies these results and implications are analyzed along with limitations and directions for future research

the efficacy of the european union emissions trading scheme depicting the co movement of carbon assets and energy commodities through wavelet decomposition abstract environmental system thresholds have been crossed for a number of dimensions of global environmental pollution such as greenhouse gas emissions under this scenario institutions and corporations are required to implement sustainable policies as a condition for humanity staying within planetary boundaries accordingly the european union created the largest emissions trading scheme in the world with the aim of properly managing corporations carbon dioxide reductions this paper aims to contribute to the literature focused on testing the effectiveness of institutional environmental management policies specifically this research evaluates whether the objectives of the european union emissions trading scheme are partially achieved by analyzing the dynamics of carbon assets and the main energy commodities worldwide this paper provides relevant information both for policy makers and company managers so that contributions towards the common goal of developing a clean energy future and curbing climate change are ameliorated based on wavelet coherence analysis this paper proposes a model free way of estimating the time varying correlations between carbon assets and energy commodities at both high and low frequencies our central results reveal that carbon assets and energy commodities present a changing lead lag behavior at different frequencies the energy commodities lead the european union allowances returns at medium frequencies but the contrary was true for the highest investment horizons this finding should be in line with the goal of significantly reducing emissions because during long cycles if the majority of companies have not switched to cleaner industrial processes they must buy more carbon assets increasing their prices in that case energy commodities would be more expensive because of the energy commodities market behavior during long term horizons with european union allowances lead the certified emissions reductions lead in a negative way most of the energy commodities at medium frequencies thus indicating that investors handling energy commodities oriented portfolios could incorporate the mentioned carbon assets for diversification purposes these specific findings suggest that polluting activities would be more expensive which would provide an incentive to companies to implement environmentally friendly industrial processes the european union emissions trading scheme can result in significant emission reductions and compliance of the european union with the objectives of the kyoto protocol

increasing the profits of a subset of firms in oligopoly models with strategic substitutes consider an industry composed of n firms in a symmetric equilibrium designate a subset of s n firms and marginally reduce the strategic variables of the firms in the subset if the remaining firms simultaneously make the best reply to this exogenous displacement under what circumstances will profits of the firms in the designated subset increase we show that in the case of cournot competition among producers of perfect substitutes a marginal contraction is strictly beneficial strictly harmful if and only if the number of firms in the designated subset exceeds the adjusted number of firms outside it by strictly more strictly less than one the adjustment factor is unity when cost and demand functions are linear but more generally depends on the convexity of the cost and demand curves thus a marginal contraction of two firms in a triopoly has no effect on the profits of firms in the subset if cost and demand functions are linear if instead cost is linear but the inverse demand function is strictly concave strictly convex a marginal contraction will strictly decrease strictly increase profits the analysis is extended to the effects of nonmarginal exogenous changes in the outputs of the constrained firms this extension has implications for the relationship of stackelberg sequential move and nash simultaneous move equilibria our analysis has broad application to illustrate we show that it unifies results in the literature on export subsidies horizontal mergers and strikes the paper is organized as follows in section i our comparative static result is derived in section ii we present a wide range of applications in the conclusion and the appendix we generalize our analysis to other situations involving strategic substitutes

helping minor firms reduces welfare the effect on national welfare of uneven technical progress and eli mination of a firm is analyzed under the existence of a cournot oligopolistic sector an increase in the share of an inefficient firm owing to its innovations results in a shift of production from more efficient firms to the inefficient firm causing a less efficie nt allocation of production it may decrease welfare even though the innovation itself is beneficial conversely policies keeping ineffic ient firms from innovations or eliminating them may increase welfare though they make the market structure more oligopolistic copyright 1988 by royal economic society

modelling food logistics networks with emission considerations the case of an international beef supply chain intrinsic characteristics of food products and processes along with growing sustainability concerns lead to the need for decision support tools that can integrate economic considerations with quality preservation and environmental protection in food supply chains in this study we develop a multi objective linear programming molp model for a generic beef logistics network problem the objectives of the model are i minimizing total logistics cost and ii minimizing total amount of greenhouse gas emissions from transportation operations the model is solved with the ee constraint method this study breaks away from the literature on logistics network models by simultaneously considering transportation emissions affected by road structure vehicle and fuel types weight loads of vehicles traveled distances return hauls and product perishability in a molp model we present computational results and analysis based on an application of the model on a real life international beef logistics chain operating in nova andradina mato grosso do sul brazil and exporting beef to the european union trade off relationships between multiple objectives are observed by the derived pareto frontier that presents the cost of being sustainable from the point of reducing transportation emissions the results from the pie chart analysis indicate the importance of distances between actors in terms of environmental impact moreover sensitivity analysis on practically important parameters shows that export ports capacities put pressure on the logistics system decreasing fuel efficiency due to the bad infrastructure has negative effects on cost and emissions and green tax incentives result in economic and environmental improvement

split awards procurement and innovation in many procurement settings it is possible for a buyer to split a production award between suppliers in this article we develop a model of split award procurement auctions in which the split choice is endogenous we characterize the set of equilibrium bids and allocations for optimizing agents in an environment in which suppliers are fully informed about each other s costs split award equilibria simultaneously exhibit strong collusive features and cost efficiency properties despite the former property of the equilibria upstream investment considerations may lead a buyer to prefer a split award auction format to a winner take all auction format

dynamic business share allocation in a supply chain with competing suppliers this paper studies a repeated game between a manufacturer and two competing suppliers with imperfect monitoring we present a principal agent model for managing long term supplier relationships using a unique form of measurement and incentive scheme we measure a supplier s overall performance with a rating equivalent to its continuation utility the expected total discounted utility of its future payoffs and incentivize supplier effort with larger allocations of future business we obtain the vector of the two suppliers ratings as the state of a markov decision process and we solve an infinite horizon contracting problem in which the manufacturer allocates business volume between the two suppliers and updates their ratings dynamically based on their current ratings and the current performance outcome our contributions are both theoretical and managerial we propose a repeated principal agent model with a novel incentive scheme to tackle a common but challenging incentive problem in a multiperiod s

integrated economic and environmental models for a multi stage cold supply chain under carbon tax regulation abstract the elevated level of public and organizations awareness concerning sustainability has necessitated the adoption of environmentally conscious practices in the management of supply chains as such classical inventory models wherein the sole measure of performance is cost minimization are no longer appropriate to handle such emerging and pressing issue this paper assesses the impact of accounting for carbon emissions resulting from transportation and storage activities of a cold item in the context of a multi stage supply chain comprised of a plant warehouse a distribution center dc and a retailer we present an operational cost minimization model a carbon footprint minimization model and a hybrid economic and environmental minimization model where all models seek to determine the optimal lot sizing and shipping quantities alongside the number of trucks to be used in the upstream and downstream directions of the supply chain as well as the number of freezer units utilized at the dc which is owned by a third party logistics provider the structural properties for the optimal solution of the three models are identified and solution algorithms are also proposed upon conducting computational experiments it turns out that the incorporation of carbon related costs through carbon tax regulation may call for adjusting the adopted operational policy which results in a minor increase in the operational cost however this increase is outweighed by the savings resulting from the carbon related costs numerical results of the sensitivity analysis on the carbon tax policy indicate that as the tax rate increases substantial reductions in the amount of carbon footprint emitted are realized and cost savings are also achieved when adopting the lot sizing and shipping policy of the third integrated model over the operational cost minimization model

facility location and capacity acquisition under carbon tax and emissions limits to centralize or to decentralize abstract we investigate the effect of environmental regulations in the form of a carbon tax and command and control legislation on plant capacity and location decisions of a firm in this context command and control involves a limit on the total emissions and penalties for any polluter exceeding this environmental limit while carbon tax involves a variable cost for emissions we also propose two novel policy options that should be considered by policy makers for transportation emissions 1 a per unit per mile transportation penalty and 2 a collective transportation emissions policy with a limit on total transportation emissions that encourages emission and cost efficient facility networks we devise an exact algorithm to solve the arising discontinuous nonlinear integer problem we also consider simplified versions of the problem to gain analytical insights on factors driving the solutions for the more accurate yet complex scenarios we develop a realistic dataset from the auto industry gleaned from publicly available sources to highlight key results of the model through analysis of this representative data we identify the environmental limits and penalties that would drive the company to compliance we find that stricter regulations without high penalties would not assure compliance as the benefits of increased scale associated with a centralized plant frequently outweigh the regulatory penalties at the strategic level a production emissions tax does not encourage companies to reduce production emissions however high lump sum penalties with intermediate limits reduce both regional production and total transportation emissions we find that for regional production emissions while a command and control scheme with a high lump sum emissions penalty is effective in reducing emissions a per unit carbon tax has no effect interestingly the opposite is true for total transportation emissions where we observe that the per unit per mile transportation emissions tax is more effective than a command and control scheme finally we also find that companies with low production pollution low demand or high transportation costs should consider decentralization to comply with the environmental regulations