Tactical supply chain planning under a carbon tax policy scheme: A case study

By Behnam Fahimnia, Joseph Sarkis, Alok Kumar Choudhary, Ali Eshragh. 2015

176 citations recorded by the source corpus.

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.

Subfields: Environmental Engineering, Renewable Energy, Sustainability and the Environment, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/1ad9f40e3a9d53acbe9efe83bf76cd100c901698

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Citations in the corpus

Carbon pricing versus emissions trading: A supply chain planning perspective (2015, background): “SC planning and optimization on its own is a relatively intricate process with numerous variables and constraints to be taken into consideration and the incorporation of environmental dimensions adds to its complexity (Fahimnia et al., 2014a).”
On the mathematical modeling of green one-to-one pickup and delivery problem with road segmentation (2018, background): “…to compare “green” products while making climate-friendly choices (see e.g., Acquaye et al. (2015)), ( ii ) Carbon emissions will have a price tag (see e.g., Choudhary et al. (2015)), and ( iii ) Carbon pricing will lead to more strict regulatory measures (see e.g., Fahimnia et al. (2015)).”