Effect of carbon emission regulations on transport mode selection under stochastic demand

By Kmr Kristel Hoen, Tarkan Tan, Jan C. Fransoo, Houtum van Gjjan. Flexible Services and Manufacturing Journal, 2012

333 citations recorded by the source corpus.

More and more companies are paying attention to their carbon footprint beyond production emissions. In this work we consider a ‘carbon-aware’ company (either by choice or enforced by regulation) that is reconsidering the transport mode selection decision. Traditionally the trade-off has been between lead time (and corresponding inventory costs) and transportation costs but now emission costs come into the equation. We use a carbon emission measurement methodology based on real-life data and incorporate it into an inventory model. We consider the results for different types of emission regulation (including voluntary targets). We find that even though large emission reductions can be obtained by switching to a different mode, the actual decision depends on the regulation and non-monetary considerations, such as lead time variability.

Subfields: Economics and Econometrics, Management Information Systems, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/00fe21b241c6543b9bc4a9d347be97f215a27fe4

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Citations in the corpus

Opportunities and challenges in sustainable supply chain: An operations research perspective (2017, background): “Only six papers exclusively focused tactical aspects (Alharbi et al., 2015; Amorim et al., 2013; Azadi et al., 2014; Battini et al., 2014; Bortolini et al., 2016; Hoen et al., 2014).”
Effects of carbon emission regulations on remanufacturing decisions with limited information of demand distribution (2015, background): “Hoen et al. (2014) examine the effect of a two-regulation mechanism on the transport mode selection decision when a single mode must be selected for all transports of a single item.”
Supply Chain Design and Carbon Penalty: Monopoly vs. Monopolistic Competition (2015, background): “Differently, Hoen et al. (2014) consider the transportation mode selection decision when carbon emission regulations are imposed.”
Joint decisions on inventory replenishment and emission reduction investment under different emission regulations (2014, background): “[31] extend the study of Hoen et al.”
Effects of carbon emission reduction policies on transportation mode selections with stochastic demand (2016, methodology): “There are a few operational research papers that deal with this issue (Leal and D’Agosto 2011; Hoen et al. 2014a, b; Konur and Schaefer 2014).”