Green credit financing versus trade credit financing in a supply chain with carbon emission limits

An, Simin; Li, Bo; Song, Dong‐Ping; Chen, Xue

doi:10.1016/j.ejor.2020.10.025

Cited by 260 publications

(146 citation statements)

References 67 publications

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“…Therefore, it is necessary for the government to implement carbon emission restriction policies. In the supply chain, manufacturers can set an appropriate green investment scope to achieve a win-win situation with suppliers when a relatively strict carbon emission policy is established, and social welfare with carbon emission constraints is lower than it would be without carbon emission constraints under these circumstances [33]. As an incentive policy of GSCM, the GCP has some shortcomings that need to be addressed [34].…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of Green Credit Financing and Carbon Emission Limits on the Supply Chain Based on POF

Deng

Yang

2021

Sustainability

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In recent years, environmental protection has been paid more and more attention. Green credit policy (GCP) is one of the significant preferential policies for government to encourage enterprises to vigorously develop green projects. We are interested in the impact of the central bank’s GCP on the profits and optimal strategies of manufacturers and suppliers related to POF (purchase order financing). Specifically, we build a game-theoretical model consisting of a manufacturer, a bank and a green supplier and a non-green supplier. Furthermore, the optimal strategies of the manufacturer and suppliers when the bank or the government sets a carbon emission cap on suppliers are discussed. We come to some important conclusions about a GCP that promotes the development of green projects since it brings higher profits to both the manufacturer and suppliers than the lack of a GCP. Furthermore, the higher the production cost, the better the effect of a GCP. Under the carbon emission restrictions required by the government, the effect of GCP is weakened and the profits of the manufacturer and the suppliers are reduced to zero due to the gradually increasing delivery risks as production costs increase.

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Section: Literature Reviewmentioning

confidence: 99%

Impact of Green Credit Financing and Carbon Emission Limits on the Supply Chain Based on POF

Deng

Yang

2021

Sustainability

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“…Some countries are also implementing more rigid policies. For instance, China decided to give a time frame to reduce the emissions under a specific limit, and failing to reach this goal will cause the closure of the company [65]. Smart steaming can be an efficient solution to deal with emissions regulations and to avoid dramatic consequences.…”

Section: Environmental Policiesmentioning

confidence: 99%

“…In practice, virtuous companies that reduce their emissions over certain limits and invest in sustainability projects (e.g., reforestation) gain carbon credits selling them to industries incapable of decreasing their emissions enough [69]. Companies that want to sell carbon credits can also rely on green credit financial services, which have the purpose of providing funds for implementing sustainable development projects [65]. Based on carbon credits, each country is implementing a different emissions trading system with a primary, i.e., government assigning credits to companies for free or through auctions, and a secondary market, i.e., companies sell credits to other companies [70].…”

Section: Environmental Policiesmentioning

confidence: 99%

Smart Steaming: A New Flexible Paradigm for Synchromodal Logistics

2021

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Slow steaming, i.e., the possibility to ship vessels at a significantly slower speed than their nominal one, has been widely studied and implemented to improve the sustainability of long-haul supply chains. However, to create an efficient symbiosis with the paradigm of synchromodality, an evolution of slow steaming called smart steaming is introduced. Smart steaming is about defining a medium speed execution of shipping movements and the real-time adjustment (acceleration and deceleration) of traveling speeds to pursue the entire logistic system’s overall efficiency and sustainability. For instance, congestion in handling facilities (intermodal hubs, ports, and rail stations) is often caused by the common wish to arrive as soon as possible. Therefore, smart steaming would help avoid bottlenecks, allowing better synchronization and decreasing waiting time at ports or handling facilities. This work aims to discuss the strict relationships between smart steaming and synchromodality and show the potential impact of moving from slow steaming to smart steaming in terms of sustainability and efficiency. Moreover, we will propose an analysis considering the pros, cons, opportunities, and risks of managing operations under this new policy.

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“…Some researches focused on the green supply chain. An et al (2021) examined the impact of trade credit financing and green credit financing, respectively. Luo et al (2020) explored the optimal procurement decision in a two-echelon green supply chain considering two schemes, supplier and bank financing.…”

Section: Literature Reviewmentioning

confidence: 99%

Risk control mechanisms of third-party guarantee when financing newsvendor

Huang

Chen

et al. 2021

RAIRO-Oper. Res.

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Two risk control mechanisms, namely, cash deposit, and loan limits based on retained profit or maximum expected guarantor profit, are developed for capital-constrained newsvendor financing. Results show that with a large initial capital or mortgage asset, the newsvendor reduces the order quantity to avoid bankruptcy risk. Under the risk control mechanism with a cash deposit, the guarantor gains greater profit when the newsvendor has a low initial capital. Setting a loan limit is thus an effective mechanism for newsvendors to not only reduce the bankruptcy risk, but also increase the guarantee profit. Numerical experiments also show that, compared with the risk control mechanism based on maximum expected profit, loan limits based on retained profit is more beneficial for the newsvendor, guarantee, and the bank.

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Green credit financing versus trade credit financing in a supply chain with carbon emission limits

Cited by 260 publications

References 67 publications

Impact of Green Credit Financing and Carbon Emission Limits on the Supply Chain Based on POF

Impact of Green Credit Financing and Carbon Emission Limits on the Supply Chain Based on POF

Smart Steaming: A New Flexible Paradigm for Synchromodal Logistics

Risk control mechanisms of third-party guarantee when financing newsvendor

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