investment in cleaner technology and signaling distortions in a market with green consumers abstract i analyze the pricing and investment behavior of a firm that signals the environmental attributes of its production technology through its price to uninformed environmentally conscious consumers i then analyze the effect of change in environmental regulation on the signaling outcome and the firm s ex ante incentive to invest in cleaner technology when regulation is weak a firm signals cleaner technology through higher price in this case the firm earns lower profit when it has cleaner technology and thus has no incentive to invest in cleaner technology the price charged by the clean firm declines sharply beyond a critical level of regulation when regulation is sufficiently stringent the firm with cleaner technology charges lower price but earns higher signaling profit and ex ante the firm has positive incentive to invest in cleaner technology with weak regulation the incentive of the firm to directly disclose its environmental performance rather than signal it through price is increasing in the level of regulation the opposite holds when regulation is sufficiently stringent

a two echelon sustainable supply chain coordination under cap and trade regulation this paper analyses the decision behaviour and coordination mechanisms for a two echelon sustainable supply chain under a cap and trade regulation in a make to order setting carbon emissions are generated primarily by the downstream manufacturing process and the market demand of the supply chain is affected by two decision variables the sustainability level and the selling price the impact of the unit emissions trading price on the optimal decision variables in both centralized and decentralized systems is revealed the comparison of decentralized and centralized systems shows that the increase in total profit in centralized system is at most 1 3 that in decentralized system to achieve the same profit as the centralized system we consider two contracts to coordinate the sustainable supply chain revenue sharing and two part tariff contracts by analysing the conditions for a win win outcome we prove that only the two part tariff contract can lead to perfect coordination finally sensitivity analysis of the key parameters is undertaken as part of a numerical example illustrating the theoretical results

product and price competition in a duopoly this paper examines the role of consumer preferences costs and price competition in determining the competitive product strategy of a firm in the model studied here there are two identical firms competing on product quality and price they face consumers who prefer a higher quality product to a lower quality product but differ in how much they are willing to pay for quality the consumers can also choose a substitute if they don t like the product price offerings of the two firms for the firms a higher quality product costs more to produce than a lower quality product the paper shows that the equilibrium strategy for each firm should be to differentiate its product from its competitor with the firm choosing the higher quality choosing the higher margin as well this differentiation however is not efficient that is it is possible to choose two other products and offer them at prices that cover their marginal cost and still satisfy consumers needs better in the aggregate a monopolist by contrast would differentiate his product line efficiently this suggests that cannibalization has different effects on product strategy than competition the paper also shows that if one firm enters the market first then it can defend itself from later entrants and gain a first mover advantage by preempting the most desirable product position

on inventory control of product recovery systems subject to environmental mechanisms abstract the aim of this paper is to study the impact of inventory control in reducing the carbon footprint of an organization through a stochastic inventory model our research extends the traditional minimization cost problem by incorporating environmental legislation we consider a finite horizon closed loop system whereby decisions are subject to an emissions trading scheme and to random demand and returns demand can be satisfied by two sources the primary source is environmentally friendly but expensive whereas the second is cost effective but with negative environmental consequences the problem is formulated as a stochastic dynamic problem where replenishment and carbon management decisions must be made at each period the objective is to describe how replenishment and carbon management strategies are affected by environmental constraints in particular considering the computation restriction of dynamic programming in order to extend the results we propose a genetic algorithm to find near optimal solutions for larger instances a sensitivity analysis is performed to identify the impact of carbon allowance prices emission cap and other environmental factors in the decision making process the results indicate that environmental strategies and their factors have an impact on replenishment decisions there is an emission cap from which a company must focus on strategic decisions rather than on tactical and operational decisions in addition if the carbon allowance price is such that the environmental benefit absorbs the cost of less polluting technology a change in the inventory policy must be made

optimization of manufacturing systems under environmental considerations for a greenness dependent demand abstract in this work we show that the optimization models for manufacturing systems should evolve to consider the environmental impacts of manufacturing activities and to integrate the environmental performance of finished products in particular the selection of manufacturing processes technologies and input items components should be revised with environmental consideration with this scope in mind we develop two optimization models where we consider the selection of production processes and the choice of input products in the first model a single product is offered by the firm and the demand of this product depends on its greenness in the second model the market is segmented between ordinary and green customers and the firm offers a different variety of the output product to each segment in this case both the demand and the price depend on the product greenness in both models the greenness of the output product is a decision variable that is simultaneously determined along with the other decisions in addition the models integrate environmental legislations we conduct numerical experiments on a case study from the textile sector in order to show how the integration of the product greenness impacts on the system profit and decisions

an experimental validation of hypothetical wtp for a recyclable product using a within subject experiment we compare hypothetical andreal willingness to pay wtp for an improvement in therecyclability of a product subjects are faced with a real paymentscenario after they have responded to a hypothetical question contrary to most of the results obtained in similar studies at apopulation level there are no significant median differencesbetween actual and hypothetical stated values of wtp however within subject comparisons between hypothetical and actual valuesindicate that subjects stating a low high hypothetical wtp tendto underestimate overestimate the value of their actualcontributions

optimal production and carbon emission reduction level under cap and trade and low carbon subsidy policies abstract in recent years massive carbon emissions have caused serious global environmental damage such as a worsening greenhouse effect and thick haze to curb carbon emissions as well as maintain sustainable economic development governments promote the development of low carbon economy by issuing multiple policies among which the cap and trade policy ctp and low carbon subsidy policy lcsp are widely adopted moreover manufacturers are increasingly adopting carbon emission reduction technology to produce greener products considering related government policies and rising environmental awareness among consumers to give policy making insights to governments as well as production and carbon emission reduction decision making insights to manufacturers this paper investigates the impacts of ctp and lcsp on the production and carbon emission reduction level of a manufacturer and explores which policy is better for society the results show that the carbon emission reduction level increases as the carbon trading price increases whereas it is independent of the unit low carbon subsidy interestingly the carbon trading price does not always have a negative effect on the manufacturer s profit and the cap does not always produce a positive effect on the manufacturer s profit more importantly we find that lcsp is more beneficial to society when the environmental damage coefficient is less than a threshold but otherwise ctp is more beneficial

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

remanufacturing as a marketing strategy the profitability of remanufacturing systems for different cost technology and logistics structures has been extensively investigated in the literature we provide an alternative and somewhat complementary approach that considers demand related issues such as the existence of green segments original equipment manufacturer competition and product life cycle effects the profitability of a remanufacturing system strongly depends on these issues as well as on their interactions for a monopolist we show that there exist thresholds on the remanufacturing cost savings the green segment size market growth rate and consumer valuations for the remanufactured products above which remanufacturing is profitable more important we show that under competition remanufacturing can become an effective marketing strategy which allows the manufacturer to defend its market share via price discrimination

design for the environment a quality based model for green product development green product development which addresses environmental issues through product design and innovation as opposed to the traditional end of pipe control approach is receiving significant attention from customers industries and governments around the world in this paper we develop a quality based model for analyzing the strategic and policy issues concerning the development of products with conflicting traditional and environmental attributes on the demand side of the problem we use the framework of conjoint analysis to structure the preferences of the ordinary and green customers on the supply side we apply the theories in optimal product design and market segmentation to analyze the producer s strategic decisions regarding the number of products introduced and their prices and qualities on the policy side we evaluate the effects of environmental standards on the economic and environmental consequences of green product development by jointly considering the interactions among the customers preferences the producer s product strategies and the environmental standards imposed by governments we present some interesting findings that can be used to manage and regulate the development of green products two major findings show that green product development and stricter environmental standards might not necessarily benefit the environment

efficient policies for green design in a vintage durable good model using a dynamic durable good model we investigate efficiency restoring policy schemes in case of free garbage disposal in the long run efficiency is attained by a subsidy on recyclability of the durable and a tax on the purchase of the durable on the short run adjustment path in contrast both policy instruments may change their signs such that the government harms recyclability by taxing it and promotes the demand for the durable good by subsidizing it a deposit refund system is shown to yield the efficient allocation both in the short run as well as in the long run

preference disaggregation 20 years of mcda experience abstract the philosophy of preference disaggregation in multicriteria decision aid systems mcda is to assess infer global preference models from the given preferential structures and to address decision aiding activities this paper presents a panorama of preference disaggregation methods and summarises the most important results and applications over the last 20 years

the international crash of october 1987 causality tests the paper analyzes lead lag relationships for six major stock market indexes new york s p 500 tokyo nikkei london ft 30 hong kong hang seng singapore straits times and australia all ordinaries for time periods before during and after the october 1987 market crash unidirectional and bidirectional causality tests are conducted by means of the granger methodology practically no lead lag relationships are found for the pre crash and post crash periods however important feedback relationships and unidirectional causality are detected for the month of the crash there is also an increase in contemporaneous causality during and after the month of the crash in general our findings suggest that the october 1987 market crash probably was an international crisis of the equity markets and that it might have begun simultaneously in all the national stock markets

external debt in post conflict countries summary in the development literature there exists no systematic study of external borrowing in post conflict countries we address this gap by analyzing statistical and case study evidence from three african countries we find that many war affected countries face rising debt arrears and deteriorating relations with creditors rebuilding trust between lenders and borrowers is hence a crucial but often slow process furthermore donors to war affected african countries have been slow to grant exceptional debt relief based on odious debt or on financial requirements debt relief for post conflict reconstruction should embrace a more forward looking and more generous conditionality

environmental resource planning under cap and trade models for optimization abstract under the conditions of a cap and trade c t program manufacturers are restricted in total greenhouse gas emissions but allowed with options to acquire and dispose environmental resource e g certified emission quota ceq or commercialized permit for emission of certain pollutant via a market system or conduct self purification sp to reduce emission level to satisfy their overall emission needs due to production or service activities this paper analyzes the operational decisions of production systems under cap and trade conditions in which the problem is modeled as a multi stage dynamic optimization problem for each planning period the model specifically addresses the decisions on purchasing ceq reducing emission via sp and carrying over surplus emission quota seq to meet the required emission level driven by production demand for the period it also makes sure that the sum of reduced emission over the whole planning horizon meets exactly a goal of emission reduction specified at the manufacturers discretion other important problem characteristics addressed include the unit cost for reducing emission level via sp to reflect the fact that the cost increases as accumulated emission reduction increases i e the more reduced the more difficult to reduce and time related cost associated with green investment for emission reduction e g interest cost of short term loans these characteristics make the model and related analysis useful for both practitioners and researchers in this area numerical experiments were designed and carried out to verify and validate the proposed concepts

reducing emissions in transportation and inventory management r q policy with considerations of carbon reduction abstract in this study we examine three approaches on the effects of controlling carbon emissions in transportation and inventory management a business as usual scenario model bausm which delineates how carbon footprints from inventory storage and related transportation are captured is firstly developed as the benchmark model based on bausm we then develop three models with different carbon reduction approaches the first one is constructed by adding a constraint to represent the percentage target of emission reduction the second one integrates carbon taxes or cap and trade scheme into inventory management and the last one takes both reduction target and carbon offset opportunities into account our work provides new analytical models which integrate cost and emissions in transportation and storage under the framework of continuous inventory review r q policy for stochastic demand optimization algorithms are developed for solving models and related properties are investigated to examine the effects of carbon reduction and associated costs of three models the policy implications of the models are examined and discussed to provide insights for reference of the practitioners and the policy makers

multi product inventory model for cold items with cost and emission consideration while sharing storage and transportation units is common for many product types cold items usually have different temperature requirements and as a result not all items can share a holding transportation unit consequently the type of products and their compatibility with other products needs to be considered in the inventory model in this paper we propose multi product inventory models for cold items the models determine the inventory levels that minimize either the cost or carbon equivalent emissions we model the compatibility of items as a constraint in the inventory model to solve the model we first find an appropriate family of products that can share a storage transportation unit then for each family of products we develop an approximate solution method to determine the order quantity of each product within a family numerical experiments demonstrate the solution procedure and provide managerial insights into cold item inventory policies

toward a theoretical model of voluntary overcompliance abstract we explain why some firms voluntarily overcomply with environmental regulation in our model all consumers value environmental quality but differ in their willingness to pay which depends on their income levels publicly available information on environmental performance of firms enables consumers to identify clean firms firms participate in a two stage duopoly game where they first choose their levels of cleaning technology and next engage in price competition the market gets segmented by income levels a minimum standard binding on the dirty firm has the effect of improving the performance of the cleaner firm a subsidy obtains the same competitive outcome

comparisons of initial carbon allowance allocation rules in an o2o retail supply chain with the cap and trade regulation abstract this paper focuses on an o2o retail supply chain in the context of low carbon environment the decision models are constructed under three cases without cap and trade regulation cap and trade regulation based on grandfathering mechanism and cap and trade regulation based on benchmarking mechanism the emission reduction strategies of the supply chain members in the three cases are then discussed the paper compares the effects of the grandfathering and benchmarking mechanisms on the firm s decisions profits and social welfare firstly the results show that the unit carbon quota plays a decisive role in firm s decisions compared with the grandfathering methodology the benchmarking one can more effectively push manufacturers to produce low carbon products and motivate retailers to promote low carbon products secondly it is profitable for the retailer to cooperate with a manufacturer who has lower emission reduction cost simultaneously the retailer will prefer the benchmarking mechanism to the grandfathering mechanism thirdly for the government it is beneficial to use grandfathering mechanism for low carbon emission firms and use benchmarking mechanism for high carbon emission firms also the paper provides government and firms with conditions where the benchmarking allocation method is more suitable for sustainable development the government s decision on benchmarks is a critical factor in maximizing the social welfare

addressing climate change with a comprehensive us cap and trade system there is growing impetus for a domestic us climate policy that can provide meaningful reductions in emissions of carbon dioxide co2 and other greenhouse gases i describe and analyse an up stream economy wide co2 cap and trade system which implements a gradual trajectory of emissions reductions with inclusion over time of non co2 greenhouse gases and includes mechanisms to reduce cost uncertainty initially half of the allowances are allocated through auction and half through free distribution with the share being auctioned gradually increasing to 100 per cent over 25 years the system provides for linkage with emission reduction credit projects in other countries harmonization over time with effective cap and trade systems in other countries and regions and appropriate linkage with actions taken in other countries in order to establish a level playing field among domestically produced and imported products

impact of efficiency investment and competition on low carbon manufacturing abstract low carbon economy has become a top agenda for many countries following the agreement in the paris meeting on climate change in this article we take price and emission sensitive demand into account and incorporate competition between the two rival manufacturers in the demand function this research takes more proactive actions incorporating carbon emissions in the strategic and operational decisions which complements the existing literature on low carbon manufacturing in which the carbon emissions attribute is often used as a constraint or only the single manufacturer s demand is considered based on game theory the pricing and carbon emissions reduction decisions are investigated our study contributes to the existing literature on low carbon manufacturing by specifically examining the impact of production efficiency carbon emissions reduction efficiency and market power structure on achieving low carbon manufacturing through the systematic analysis of optimal pricing and green technology investment decisions to improve the economic and environmental performance under different market power structures our findings provide valuable managerial implications which will help many manufacturing firms to make important strategic and operational decisions regarding low carbon manufacturing

an optimization model for a monopolistic firm serving an environmentally conscious market use of chemical reaction optimization algorithm this work considers a monopolist firm which faces the following twin challenges of serving an environmentally sensitive market the first challenge is the demand s elasticity to emissions and price to entice its emission conscious customers and generate higher demand the firm incrementally invests in cleaner production technologies it also adopts a voluntary limit on its emissions from transportation however such investments and penalty lead to the second challenge of reduced net profit to address above trade off a non linear programming nlp model with a maximization quadratic profit function has been formulated recently developed chemical reaction optimization algorithm with superior computational performance has been adopted to solve the nlp the output of the model provides near optimal monopolistic price best attainable reduction in manufacturing emissions through proportional investment and makes a choice of suitable mode of transportation for each type of product offered by the firm three types of sensitivity analyses were performed by varying contextual parameters customers emission elasticity penalty charged per unit emission and investment coefficient the results underpin the importance of investments in cleaner technologies and the need of financial aids for profit maximizing firms operating in cleaner markets this work provides a decision making tool to determine the near optimal degree of each of the above dimension in multiple business fronts

sustainable allocation of greenhouse gas emission permits for firms with leontief technologies abstract in this paper we deal with production situations where a cap or limit to the amount of greenhouse gas emissions permitted is imposed fixing a tax for each ton of pollutant emitted is also considered we use bankruptcy rules to define cooperative games with externalities associated with these situations and analyze the existence of coalitionally stable allocations of the emission permits we prove that the constrained equal awards cea rule provides stable allocations and as a direct mechanism it is incentive compatible these two facts have interesting managerial implications to control pollution emissions

sustainable economic production quantity models for inventory systems with shortage abstract recently new economic order production quantity models have shifted away from focusing only on economic issues and towards combined economic environmental concerns because of sustainable development goals despite this shift only a few works have addressed sustainable economic production quantity epq the theoretical sustainable eoq and epq models are basic models that ignore many real life conditions such as the possibility of stock out in inventory systems in this paper we develop four new sustainable economic production quantity models that consider different shortage situations to find optimal values of inventory system variables we solve four independent profit maximization problems for four different situations these proposed models include a basic model in which shortages are not allowed and when shortages are allowed the lost sale full backordering and partial backordering models can be selected by operations managers depending on the manufacturer s motivation to improve service levels we have also proposed an algorithm for determining optimum values of the decision variables for these sustainable economic production quantity models finally the formulated models are explained with some different examples and the obtained results have been analyzed and discussed these results show that the sustainable economic production quantity with partial backordering model is a general and more realistic model that can be used in many real cases with a reasonable profit amount compared with the three other proposed models

customer regulatory and competitive pressure as drivers of environmental innovation we develop an economic analysis in order to examine the effects of consumer regulatory and competitive pressure on firm investments in environmentally friendly production specifically we ask why do firms vary in their levels of environmental innovation under what conditions are such pressures effective in bringing about environmental innovation we first consider a monopolist who faces the twin pressures of reduced customer demand and regulatory penalties as a result of its emissions in response to these pressures the firm has the opportunity to make a costly investment in reduction of emissions secondly we consider a competitive scenario in which two firms compete for environmentally sensitive customers solving our model we find that pressure has the intended effect as long as the firm s initial level of emissions is below a certain threshold if the emissions are above this threshold we find that pressure might have an adverse effect on the firm s environmental investment and that subsidies that support environmental innovation can be a better alternative we also show that competition over environmentally sensitive customers can improve the effectiveness of environmental pressures

efficiency costs of meeting industry distributional constraints under environmental permits and taxes many pollution related industries wield strong political influence and can e ectively veto policy initiatives that would harm their profits a politically realistic approach to environmental policy therefore seems to require the alleviation of significant profitlosses to these industries the regulatory authority can do this by freely allocating some emissions permits or by exempting some inframarginal emissions from a pollution tax however such policies compel the government to forego an e cient potential revenue source and to rely more heavily on ordinary distortionary taxes as a result achieving distributional objectives comes at a cost in terms of e ciency using analytically and numerically solved equilibrium models we analyze the e ciency costs implied by the distributional constraint that adverse impacts on profits in particular industries must be avoided both models indicate that the e ciency cost implied by this constraint dwarfs the other e ciency costs when the required amount of abatement is very small when the abatement requirement becomes more extensive however the cost of this constraint diminishes relative to the other e ciency costs of pollution control we also calculate the compensation ratio the share of potential policy revenue that the government must forego to protect the industries in question we show how this ratio is a ected by the extent of abatement supply and demand elasticities and the potential for end of pipe treatment one definition of this ratio corresponds to the share of pollution permits that must be freely allocated to prevent profit losses in the targeted industries numerical simulations of sulfur dioxide pollution control suggest that the bush administration s clear skies initiative would exceed this ratio freely allocating more permits than necessary to preserve profits our models also highlight significant di erences between gross and net policy revenues when abatement is extensive a large fraction of the revenue collected from emissions permits or taxes is o set by the revenue loss from erosion of the base of existing factor taxes

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

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

the impacts of public sustainability concerns on length of product line abstract this paper studies how the public sustainability concerns affect a firm s decisions of product line design under different channel structures both centralized distribution channel and decentralized distribution channel are taken into consideration our research shows that the public sustainability concerns can make the centralized firm shorten its product line when the coefficient of consumer mismatching disutility is moderate in addition when the centralized firm makes the decision of product line extension from the aspect of maximizing social welfare a relative low level of the public sustainability concerns can incent it to extend the product line the public sustainability concerns are shown to be able to weaken the positive impact of channel decentralization that has on product line extension when the coefficient of consumer mismatching disutility is moderate as well

crop sales shortages and peasant portfolio behaviour an analysis of angola the article focuses on the influence of economic factors on sales of agricultural products in angola between the early 1970s and the mid 1980s the volume of sales declined by around 90 per cent while during the late 1980s there was a significant recovery this was partly due to non economic factors such as war and drought however the rural economy also experienced extraordinary regulatory changes which led to a severe shortage of consumer goods the theory of peasant supply response in a rationed economy therefore provides a starting point for the analysis and is further extended to incorporate features particular to angola

price increasing competition in a discrete choice model of product differentiation the symmetric duopoly price may be lower than equal to or higher than the single product monopoly price whereas the market share effect encourages a duopolist to charge less than the monopoly price because a duopolist serves fewer consumers the price sensitivity effect motivates a higher price when more consumer choice steepens the firm s demand curve the joint distribution of consumer values for the two conceivable products determines the relative strength of these effects the analysis provides precise conditions for price increasing competition and reveals that it is unexceptional from a theoretical perspective

the role of co opetition in low carbon manufacturing abstract low carbon manufacturing has become a strategic objective for many developed and developing economies this study examines the role of co opetition in achieving this objective we investigate the pricing and emissions reduction policies for two rival manufacturers with different emission reduction efficiencies under the cap and trade policy we assume that the product demand is price and emission sensitive based on non cooperative and cooperative games the optimal solutions for the two manufacturers are derived in the purely competitive and co opetitive market environments respectively through the discussion and numerical analysis we uncovered that in both pure competition and co opetition models the two manufacturers optimal prices depend on the unit price of carbon emission trading in addition higher emission reduction efficiency leads to lower optimal unit carbon emissions and higher profit in both the pure competition and co petition models interestingly compared to pure competition co opetition will lead to more profit and less total carbon emissions however the improvement in economic and environmental performance is based on higher product prices and unit carbon emissions

timing and eco nomic efficiency of climate friendly investments in supply chains abstract emission trading schemes such as the european union emissions trading system euets attempt to reconcile economic efficiency with ecological efficiency by creating financial incentives for companies to invest in climate friendly innovations using real options methodology we demonstrate that under uncertainty economic and ecological efficiency continue to be mutually exclusive this problem is even worse if a climate friendly project depends on investing in of a whole supply chain we model a sequential bargaining game in a supply chain where the parties negotiate over implementation of a carbon dioxide co2 saving investment project we show that the outcome of their bargaining is not economically efficient and even less ecologically efficient furthermore we show that a supply chain becomes less economically efficient and less ecologically efficient with every additional chain link finally we make recommendations for how managers or politicians can improve the situation and thereby increase economic as well as ecological efficiency and thus also the eco efficiency of supply chains

the carbon constrained eoq model with carbon emission dependent demand abstract currently companies are looking for solutions to reduce carbon emissions associated with their operations operational adjustments such as modifications in batch sizes or order quantities have proven to be an effective way to decrease emissions in this paper a novel model is proposed that takes into account the link between an inventory policy eoq total carbon emissions and both price and environmental dependent demands in the case of an exogenous price two optimal quantities are determined which maximize a retailer s profit and which minimize carbon emissions conditions that allow a company to maximize profit while minimizing emissions and mechanisms that allow a firm to maximize its profit and to decrease its carbon emissions are determined in the case of an endogenous price some empirical results are also discussed when a firm optimizes its profit through both its selling price and its order quantity some experiments match empirical observations on the one hand an environmental strategy is more significant for cheaper and green labeled products on the other hand a public mechanism such as a carbon tax will decrease total and marginal emissions

von stackelberg and cournot duopoly choosing roles under what circumstances will firms agree on the choice of roles of leader and follower in the von stackelberg duopoly model a key determinant is the slope of the firms reaction function in either price or quantity space the duopolists will disagree over the choice of roles if they have downward sloping reaction functions each will prefer to be the leader they will also disagree if they have upward sloping reaction functions and similar profit functions each will prefer that the other be the leader preferences between von stackelberg and cournot outcomes are also considered

98 effective integer ratio lot sizing for one warehouse multi retailer systems a warehouse supplies n retailers constant external demand occurs at each retailer and shortages are not allowed there are linear holding costs and fixed costs for ordering at the warehouse and at each retailer the goal is to minimize the long run average cost over an infinite time horizon we define a new class of policies for this problem whose simple structure facilitates both computation and implementation the cost of a policy that is optimal within this class is shown to be within 2 of the cost of an optimal policy for the original problem in the worst case such a policy can be computed in on log n time

product design and efficient management of recycling and waste treatment abstract using a general equilibrium model where material is first extracted then used for producing a consumption good recycled and finally treated to reduce environmental damage we study efficiency restoring policies when one or more of the constituent markets are inactive the material is modeled as being embodied in the output and forms an important aspect of green product design if all markets for embodied material per unit output fail and if recycling benefit exceeds environmental damage the policy instruments needed for green design are a tax on the consumption good supply and a subsidy on the demand for material input

how many parts to make at once reprinted from factory the magazine of management volume 10 number 2 february 1913 pp 135 136 152 interest on capital tied up in wages material and overhead sets a maximum limit to the quantity of parts which can be profitably manufactured at one time set up costs on the job fix the minimum experience has shown one manager a way to determine the economical size of lots

an empirical investigation of green purchase behaviour among the young generation due to an increasing awareness in environmental impact consumers are more sensitive towards green products when making their purchasing decisions the young generation who represents the future of our society seems to have a different attitude and belief which enables them to reflect on their choice of green products this research empirically examines the influence of ecological affect and ecological knowledge on the green purchasing behaviour of the young generation a survey was administered to young consumers between the age of 18 and 30 structural equation modelling was applied to test the hypotheses the analysis result confirms that the ecological effect and knowledge are significant in determining young consumers green involvement as well as their actual purchase

currency competition network externalities and switching costs towards an alternative view of optimum currency areas existing models of currency competition and monetary union ignore network effects and switching costs this paper develops a simple model that incorporates these features and shows how it can be used to shed light on observed monetary experience and current issues in international monetary relations it explains why agents will often be reluctant to switch currencies highlights the role of expectations and sheds light on the nature of currency competition and the effect of legal restrictions copyright 1993 by royal economic society

including sustainability criteria into inventory models research on sustainability performance has considerably enriched operations management literature in recent years however work with quantitative models is still scarce this paper contributes by revisiting classical inventory methods taking sustainability concerns into account we believe that reducing all aspects of sustainable development to a single objective is not desirable we thus reformulate the classical economic order quantity model as a multiobjective problem we refer to this model as the sustainable order quantity model then a multi echelon extension of the sustainable order quantity model is studied for both models the set of efficient solutions pareto optimal solutions is analytically characterized these results are used to provide some insights about the effectiveness of different regulatory policies to control carbon emissions we also use an interactive procedure that allows the decision maker to quickly identify the best option among these solutions the proposed interactive procedure is a new combination of multi criteria decision analysis techniques

a century of evolution from harris s basic lot size model survey and research agenda abstract determining the economic lot size has always represented one of the most important issues in production planning this problem has long attracted the attention of researchers and several models have been developed to meet requirements at minimum cost in this paper we explore and discuss the evolution of these models during one hundred years of history starting from the basic model developed by harris in 1913 up to today following harris s work a number of researchers have devised extensions that incorporate additional considerations the evolution of eoq theory strongly reflects the development of industrial systems over the past century here we outline all the research areas faced in the past by conducting a holistic analysis of 219 selected journal papers and trying to give a comprehensive view of past work on the eoq problem finally a new research agenda is proposed and discussed

impact of product pricing and timing of investment decisions on supply chain co opetition abstract in supply chain co opetition firms simultaneously compete and co operate in order to maximize their profits we consider the nature of co opetition between two firms the product supplier invests in the technology to improve quality and the purchasing firm buyer invests in selling effort to develop the market for the product before uncertainty in demand is resolved we consider three different decision making structures and discuss the optimal configuration from each firm s perspective in case 1 the supplier invests in product quality and sets the wholesale price for the product the buyer then exerts selling effort to develop the market and following demand potential realization sets the resale price in case 2 the supplier invests in product quality followed by the buyer s investment in selling effort then after demand potential is observed the supplier sets the wholesale price and the buyer sets the resale price finally in case 3 both firms simultaneously invest in product quality and selling effort respectively subsequently observing the demand potential the supplier sets the wholesale price and the buyer sets the resale price we compare all configuration options from both the perspective of the supplier and the buyer and show that the level of investment by the firms depends on the nature of competition between them and the level of uncertainty in demand our analysis reveals that although configuration 1 results in the highest profits for the integrated channel there is no clear dominating preference on system configuration from the perspective of both parties the incentives of the co opetition partners and the investment levels are mainly governed by the cost structure and the level of uncertainty in demand we examine and discuss the relation between system parameters and the incentives in desiging the supply contract structure

a sustainable production inventory model for a controllable carbon emissions rate under shortages abstract carbon emissions are the key factor of global warming nowadays some countries have focused on reducing carbon emission carbon tax and cap policies are the key mechanism utilized in many countries to achieve this keeping this issue in mind a sustainable economic production quantity sepq carbon tax and cap model has considered for a controllable carbon emissions rate by investing in green technology gt efforts under different with and without shortage situations this study has three models a a sustainable economic production quantity carbon tax and cap model with no shortages b a sustainable economic production quantity carbon tax and cap with partial backordering and c a sustainable economic production quantity carbon tax and cap with full backordering with and without green technology investment a solution methodology has been proposed for determining the optimal strategies of cycle time green technology investment and the fraction period length in positive inventory level several numerical examples have studied to validate the sustainable economic production quantity models the results of this paper are a sustainable economic production quantity carbon tax and cap partial backlogging case has a better justifiable profit with the highest cycle time and the lowest value of the fraction length period as well as the lower green technology investment cost compared with other models finally sensitivity analysis has provided with the managerial implication of the optimal feasible solution with respect to some key parameters

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

transforming sustainability challenges into competitive advantage multiple case studies kaleidoscope converging into sustainable business models abstract recent tendency has been pushing organizations to rethink their role in society and making organization reflect that profit may not be the only and foremost important business performance criteria thus recent literature has been exploring the sustainable business models sbm s as a way to insert sustainability goals into the core of business decisions this research aims to advance in this body of knowledge and proposes a theory and practice based framework to support organizations towards more sbm making explicit main elements to align business to sustainability performance goals to support the argument that there is no unique solution to design sbm this research performs a multiple case studies in eleven organizations from diverse sectors situated in brazil and in the united kingdom results show that sbm is not an attempt to deny business as usual perspective but rather it seeks to complement this view by adding a more axiological and systemic approach in particular three convergent aspects were identified in the case studies as relevant efforts support the integration of sustainability into sbm s value creation and delivery system 1 the connection between business purpose and employees values and believes 2 the pro active and clear engagement in solving sustainability problems and 3 the need for system level changes to enable successful sbm s this systemic thinking is highlighted by the concept emerged from the research the cascaded sustainable value captured representing that as sbm s are part of a value network value delivered by the organizations is captured not only by stakeholders to which they have direct contact but rather this is also deployed to stakeholders of focal company s stakeholders this distinction is not always trivial for companies so the proposed concept can support advances in sbm discussions further studies are called to the challenge of making explicit that sbm s are not only companies that directly addresses a specific social and or environmental problem but rather is an emerging paradigm on how to manage efficient businesses in any sector to add positive value to the globe

testing for linear and nonlinear granger causality in the stock price volume relation linear and nonlinear granger causality tests are used to examine the dynamic relation between daily dow jones stock returns and percentage changes in new york stock exchange trading volume we find evidence of significant bidirectional nonlinear causality between returns and volume we also examine whether the nonlinear causality from volume to returns can be explained by volume serving as a proxy for information flow in the stochastic process generating stock return variance as suggested by clark s 1973 latent common factor model after controlling for volatility persistence in returns we continue to find evidence of nonlinear causality from volume to returns

optimizing cooperative carbon emission reduction among enterprises with non equivalent relationships subject to carbon taxation abstract getting enterprises to reduce carbon emissions cooperatively is an effective way of sharing the burden of carbon taxation it is easier for core enterprises to promote cooperation because of their dominant positions in the supply chain the main goal of this paper is to provide a potential method for the core enterprise to organize this cooperation successfully we explore how core enterprises should allocate their reduction investments and coordinate the selection of technology upgrade strategies so as to maximize their profits without disrupting the profits of cooperating enterprises for a supply chain where there are non equivalent relationships between enterprises the main hypotheses are that each enterprise only produces one product and each production process in each enterprise can only select one production technology and the intermediate products are mainly traded among cooperative enterprises a model based on independent carbon emission reduction model i is first constructed and used to analyze each enterprises basic information when they reduce carbon emission without cooperation considering total costs profits and so on then based on this information a model including cooperation is proposed model ii in model ii the enterprises are divided into core and cooperative enterprises and both capital and technical cooperation are considered a multi agent system is presented to simulate the negotiations between the enterprises and is then used to solve model ii finally a numerical example is considered to examine the feasibility of the proposed model the results indicate that a cooperative carbon emission reduction strategy has more advantages than the independent carbon emission reduction approach a notable advantage is that it can further rationalize the emission reduction structure of the supply chain through rational allocation of reduction investments and thus further restores profits

design for the environment impact of regulatory policies on product development abstract globally automakers are facing pressure from their stakeholders to follow sustainable business practices and produce products that are less harmful to the environment the introduction of gas guzzling automobiles in the us market despite the increasingly stringent emission norms highlights the widening gap between the goals of the regulators and the automakers demanding a fresh outlook at the regulatory framework in this paper we therefore propose a composite regulatory standard that not only allows the regulators to control various environmental standards but also provides automakers with an opportunity to exploit scale economies and synergies in product development our results show that under composite regulations sufficiently high economies of scale will ensure higher traditional and environmental qualities as well as higher profits for the automaker while operating in two markets as opposed to a single market we also find under the composite regulations that when more demanding norms are in place despite positive synergies between traditional and environmental quality attributes higher environmental quality is not guaranteed unless the scale economies are sufficiently high our work has implications for regulatory authorities in evaluating alternative policy design under heterogeneous market characteristics and technological synergies

where have all the soldiers gone demobilization and reintegration in ethiopia abstract this paper analyzes the experiences of demobilization and reintegration of about half a million ex soldiers during the first part of the 1990s in ethiopia we use rural household data on ex soldier and non soldier households to assess whether reintegration has been successful we find that the targeting efficiency of the demobilization program has not been as good as generally claimed ex soldiers have welfare levels similar to non soldiers they are generally considerably better educated but have fewer assets than non soldiers using a treatment effects model we find that returns to labor and assets for ex soldiers are indistinguisable from those of non soldiers families this suggests that ex soldiers have been successfully reintegrated in the rural economy even though this means they are sharing the low standards of living of the rest of the rural population

the effects of emission trading on production and inventories in the arrow karlin model abstract the paper deals with the effect of introduction of tradable permits on the production inventory strategy of a firm it is assumed that the firm will minimize its costs the cost function consists of linear holding and convex production costs after introducing emission trading the cost function will contain a linear emission procurement selling cost we will compare the optimal production inventory strategy before tradable permits and thereafter the mathematical investigation is based on the well known dynamic arrow karlin model

a theory of consumer boycotts under symmetric information and imperfect competition this article models strategic interactions between non identical duopolistic firms and a public interest environmental organisation eo that promotes green production practices by threatening consumer boycotts against brown producers the article describes when boycotts are deterred by prior firm commitments to be green and also when a boycott arises in equilibrium despite symmetric information when a boycott arises it is either a small persistent boycott against the small firm in the industry or a large transitory boycott against the large firm in the industry that prompts the target firm to accede to the boycott demands quickly

environmentally responsible inventory models non classical models for a non classical era abstract mathematical models of inventory typically include the three inventory associated costs of surplus shortage and ordering these classic inventory models are then analysed so as to choose inventory parameters that usually minimise the total cost of operating the inventory system being investigated unfortunately classic inventory models do not provide a meaningful basis for analysing many real and increasingly important practical inventory problems and situations it is therefore not surprising that over recent years several authors have discussed these issues in broad terms and suggested that a new paradigm needs to be developed this paper develops some specific aspects of this discussion in particular the paper identifies a range of inventory problems that are not covered appropriately by traditional inventory analysis one of these is to design responsible inventory systems i e systems that reflect the needs of the environment the paper then examines the importance of inventory planning to the environment in greater detail for example packaging is important not only because of its costs and the protection that it provides to the inventory items but also because of its eventual effects on the environment in terms of the use of resources and potential landfill for similar reasons waste which can result from poor inventory management is highly important the location of stores is important because location affects transport costs thus the influence of the secondary aspects of most inventory models packaging waste and location are important but even more important are the inter relations with the total system in particular the location of the manufacturing plants and the effect that inventory planning has on the logistics chain potentially have considerable environmental implications inventory is part of a wider system however until the cost charged for an activity reflects the true environmental cost of that activity it is likely that decisions will be made on the basis of erroneous data in that situation we are faced with either determining the environmental cost of specific actions or to use environmental costs that are somewhat contrived in which case it may be more sensible to use very different performance measures and models the paper discusses these ideas and ways in which inventory policies may reassure us with our environmental concerns

explaining african economic performance africa has had slow growth and a massive exodus of capital in many respects it has been the most capital hostile region we review and interpret the aggregate level and microeconomic literatures to identify the key explanations for this performance there is a reasonable correspondence of the two sets of evidence pointing to four factors as being important these are a lack of openness to international trade a high risk environment a low level of social capital and poor infrastructure these problems are to a substantial extent attributable to government behaviour and the paper includes a review of the political economy literature which addresses that behaviour

a model of price leadership based on consumer loyalty this paper analyzes a duopolistic price setting game in which firms have loyal consumer segments but cannot distinguish them from price sensitive consumers the authors adapt a variant of h varian s 1980 simultaneous price setting game to analyze price leader equilibria the properties of the price leader equilibria with an exogenously specified leader motivate the construction of a game of timing in which the firm with the larger segment of loyal consumers becomes an endogenous price leader this demonstrates that consumer loyalty may play an important role in establishing the existence and identity of a price leader copyright 1992 by blackwell publishing ltd

a comparative analysis of greening policies across supply chain structures abstract in this paper we examine an apparel serial supply chain whose players initiate product greening we consider situations in which the players cooperate or act individually our problem is motivated by recent developments in the supply chains of global apparel players we build game theoretic models and show how greening levels prices and profits are influenced by channel structures we also study the impact of greening costs and consumer sensitivity towards green apparels we propose a two part tariff contract to coordinate the green channel our key contribution lies in the model of decision making of various supply chain structures and analyzing its impact on the players and supply chain the problem throws interesting insights into the strategies of apparel players and their key decisions

product development decisions a review of the literature this paper is a review of research in product development which we define as the transformation of a market opportunity into a product available for sale our review is broad encompassing work in the academic fields of marketing operations management and engineering design the value of this breadth is in conveying the shape of the entire research landscape we focus on product development projects within a single firm we also devote our attention to the development of physical goods although much of the work we describe applies to products of all kinds we look inside the black box of product development at the fundamentaldecisions that are made by intention or default in doing so we adopt the perspective of product development as a deliberate business process involving hundreds of decisions many of which can be usefully supported by knowledge and tools we contrast this approach to prior reviews of the literature which tend to examine the importance of environmental and contextual variables such as market growth rate the competitive environment or the level of top management support

can downstream waste disposal policies encourage upstream design for environment design for environment takes place when firms explicitly incorporate environmental issues in their product design and manufacturing decisions joseph fiksel 1996 to reduce waste associated with consumer products for example firms can reduce product weight including the amount of packaging that comes with a product and make products easier and less costly to recycle the latter can be accomplished by changing the type of material used in a product avoiding mixing of materials in a single product coding and labeling when different materials are used and designing for ease of disassembly u s congress office of technology assessment 1992 fiksel 1996 an important debate centers around the question of whether design for environment dfe needs to be explicitly targeted using policy instruments focused upstream on producers or whether downstream instruments send sufficient signals back upstream one important downstream instrument is a disposal fee i e charging households a price per pound per bag or per can for their trash many observers feel that downstream instruments do not send appropriate signals back upstream some economists and others have suggested on the other hand that disposal fees can in theory send signals upstream to producers karen palmer and walls 1998 we find that disposal fees provide incentives for efficient dfe only when there is a fully functioning recycling market i e only when recyclers pay households a price for each of their recyclable items and that price varies with the degree of product recyclability in the real world transactions costs of paying households for each individual item recycled would be prohibitively high in a more realistic setting in which households may place some items in a recycling bin but are not paid for doing so a disposal fee by itself will not yield a social optimum it encourages households to place items in the bin but all items allowed in the bin are of equal value to the household i e there is no reason to prefer an easily recyclable aluminum can to a difficult to recycle plastic milk jug this means that there is no signal to producers to make products more recyclable if the government can set product taxes that vary with product recyclability the social optimum can be restored but this option is not practicable 2 we argue that the infeasibility of i paying households for recycling and ii taxing products according to their recyclability means that a first best outcome is no longer attainable instead we set up a constrained second best optimum and solve for policy instruments that achieve this outcome we find that a disposal school of economics and finance victoria university of wellington wellington new zealand walls is also a university fellow with resources for the future washington dc the helpful comments of karen palmer don fullerton and hilary sigman are greatlv appreciated 1 manufacturer take back requirements such as germany s well known packaging take back law were developed at least in part as a way to encourage dfe see www oecd org env epr index htm for updates from a series of oecd workshops held in 1997 1999 on the broader topic of extended producer responsibility in practice individual german producers do not actually take back their own products at end of life they have formed a consortium that arranges to collect members waste from households marked with a green dot and recycle it we do not address take back mandates in this paper 2 in calcott and walls 1999 we derive these taxes don fullerton and wenbo wu 1998 show that a direct subsidy to recyclability combined with other instruments can yield a social optimum this subsidy depends on production function parameters thus if firms differ the subsidy would vary across firms more i mportantly observing and measuring recyclability to determine subsidy payments would be virtually impossible

pricing and quality decisions and financial incentives for sustainable product design with recycled material content under price leadership abstract design for recycling has been promoted by companies and governments around the world as one of the most important practices for achieving sustainability the success or failure of such a practice however depends heavily on the financial incentives for firms to design products with more recycled or recyclable material contents an interesting phenomenon that can be observed in many markets with products made predominately from either virgin or recycled materials is the existence of price leadership in this paper we utilize an interdisciplinary approach with both theoretical and empirical analyses to study the pricing and design decisions for products with virgin and recycled material contents in a duopoly market consisting of both the environmentally conscious green and non environmentally conscious brown consumers under price leadership our analytical results show that the brown segment s efficient quality provides an anchor product position for the price leader regardless of whether the price leader is a brown or green firm the price follower s financial incentive for becoming a green or brown firm will then lead to different cases of price leadership with very different environmental consequences specifically the arrangement where the brown and green firms are the price leader and follower respectively leads to more environmentally friendly design decisions than those under the other arrangement where the duopolists switch their pricing roles in addition we conduct an empirical analysis to explore the specific types of price leadership in the markets of aluminum cardboards and pet based on the equilibrium pricing and quality decisions we analyze the financial incentives for the more environmentally friendly case of price leadership to be realized and derive important insights to formulating strategies and policies to implement the practice of design for recycling from the interdisciplinary perspective

war peace and private portfolios abstract during civil wars trading is profitable as markets fragment profits may be saved in liquid form because investment is too risky in a successful economic transition to peace these liquid assets are switched into investment continuing fears of insecurity however may keep portfolios liquid we consider three policy consequences the unpredictable return of confidence causes erratic changes in the demand for money complicating monetary targeting government liabilities become unmarketable except at prohibitive interest rates though the state may be able to sell real assets the government can subsidize the act of investment commitment by temporarily undervaluing the exchange rate

transitional politics emerging incentive based instruments in environmental regulation abstract this paper proposes a positive theory of environmental instrument choice we study a democratic society that seeks to lower the level of pollution from industrial sources to a pre specified target the target can be implemented by one of three instruments s uniform emission standards p tradeable permits and t emission taxes the conflict of interest between special interests representing polluters and the electorate is resolved by an elected politician we characterize when each of the three policy instruments is chosen in political equilibrium and show that the transition observed in many countries from s to either p or t can be understood as a natural consequence of increasingly ambitious environmental targets

tax subsidy policies in the presence of environmentally aware consumers abstract we study policy measures to improve environmental quality in the presence of environmentally aware consumers we consider two sets of policy instruments uniform policies for the firms and policies that discriminate between the firms based on their environmental quality for the latter set either the better performer is rewarded with a subsidy or the worse performer is punished with a tax we find that while a uniform subsidy policy improves average environmental quality a uniform tax policy worsens it further while a discriminatory subsidy policy reduces total pollution and enhances aggregate welfare a discriminatory tax policy may increase total pollution and may reduce aggregate welfare

designing a family of development intensive products faced with fragmented markets saturated and demanding customers and global competition firms increasingly must design and offer a line of innovative quality differentiated products to target customers with differing willingness to pay wtp in this context designing a special class of products that we term development intensive products dips for which the fixed costs of development far outweigh the unit variable costspresents some unique managerial challenges examples of such development intensive offerings abound in a number of industries including the pharmaceutical information and entertainment sectors of the economy our contributions in this paper are threefold a to show that managerial insights from the traditional approach to product line design developed for unit variable cost intensive products do not carry over to dips b to present new mechanisms and managerial guidelines for designing a family of products for which development costs cannot be ignored and c to illustrate the insights with an extended industry example we find that the design approach based on degrading or subtracting value from a high end product to obtain a subsumed low end edition shown in the literature to be an effective approach for designing unit cost intensive products can be inappropriate for dips this limitation of value subtraction has implications for the number of variants and the sequence in which they are developed as an alternative to a subsumed product design strategy we propose and examine the overlapped product design approach in which a low end product is not completely subsumed within its high end counterpart but differentiated on additional vertical quality dimensions our results both explain the recent challenges of firms with subsumed low end products and guide them in designing a product line to successfully address emerging low end market segments

multi item production planning with carbon cap and trade mechanism abstract carbon emission control becomes a challenge in recent years and carbon emission trading is an effective way to curb carbon emission this paper investigates the multi item production planning problem with carbon cap and trade mechanism in which a firm uses a common capacity and carbon emission quota to produce multiple products for fulfilling independent stochastic demands and the firm can buy or sell the right to emit carbon on a trading market of carbon emission a profit maximization model is proposed to characterize the optimization problem the optimal policy of production and carbon trading decisions is analyzed and an efficient solution method with linear computational complexity is presented for solving the optimal solution the impacts of carbon price carbon cap on the shadow price of the common capacity production decisions carbon emission and the total profit are investigated the comparisons of the carbon cap and trade policy and the taxation policy are given to show the effectiveness of the policies numerical analyses are presented for illustrating our findings and obtaining some managerial insights and policy implication

the single period inventory model under dual sourcing and product carbon footprint constraint abstract important drivers for environmental sustainability efforts in purchasing and supply management are top management initiatives and compliance with laws and regulations on the other hand market forces are largely ignored although it is shown that the product carbon footprint contained on the product s eco label influences the purchasing decisions of consumers if it is disclosed by several companies in an industry then the product carbon footprint turns out to be a relevant competitive differentiator i e the company with lower emissions can increase its market share in this paper we consider the single period inventory model with product carbon footprint constraint an upper bound for the carbon footprint is specified as a benchmark derived either from the company s environmental target or from an industry standard in the case of one supply option the optimal order quantity is characterized by a one sided control limit policy especially for high profit products the environmental constraint is binding thus has a negative impact on the economic performance i e expected profit if a second supply option exists in the resulting dual sourcing framework with quick response two scenarios with different additional costs and emissions for the second emergency order are considered in the first scenario for both options the same supplier is used it applies to an offshore supplier because a fast transportation mode is considered here the structure of the optimal first order quantity is a two sided control limit policy in scenario two the second order comes from a different onshore supplier by comparing the fast and the onshore scenario the trade off between economic expected profit and environmental expected emissions performances is discussed

analyzing the impacts of carbon regulatory mechanisms on supplier and mode selection decisions an application to a biofuel supply chain this paper analyzes the impacts of carbon regulatory mechanisms on replenishment decisions in a biofuel supply chain we employ mathematical models for operations which integrate replenishment and supplier transportation mode selection decisions these models explicitly account for carbon emissions that may result from transportation and inventory storage activities this research is motivated by observations indicating that nearly 19 of the energy consumption and 25 of the energy related carbon dioxide emissions worldwide arise from transportation because freight transportation is expected to continue to grow we consider the impacts of different carbon regulatory mechanisms on transportation and inventory replenishment decisions in a biofuel supply chain a set of extensive numerical experiments uses the biofuel supply chain context to analyze the impacts of different regulatory mechanisms including carbon cap carbon tax carbon cap and trade and carbon offset on performance we use existing methodologies to calculate emissions as a function of distance traveled load weight and transportation mode used we also use publicly available data to derive representative biomass transportation costs as a consequence our numerical results are meaningful and give a realistic representation of the relationships between emissions from different transportation modes and the resulting costs the results of our computational experiments indicate that carbon regulatory mechanisms have a non trivial impact on replenishment schedules and as a consequence costs and emissions in the supply chain

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