Investment Strategy of Emission-Reduction Technology in  a Supply Chain

Lou, Gao Xiang; Xia, Hai Yang; Zhang, Jie Qiong; Fan, Tijun

doi:10.3390/su70810684

Cited by 85 publications

(53 citation statements)

References 21 publications

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“…This implies that = −(1/ )ln(1 − / ). This relation is analogous to the relation considered by Lou et al [9]. The fraction of reduction is 0, when = 0, and tends to when tends to infinity.…”

Section: Model Parameterssupporting

confidence: 57%

“…The fraction of reduction is 0, when = 0, and tends to when tends to infinity. Lou et al [9] took = 1. The parameter reflects the efficiency of greener technology in reducing emission.…”

Section: Model Parametersmentioning

confidence: 99%

“…They considered carbon emissions reduction investment availability under carbon cap, tax, and cap-and-trade policies. Lou et al [9] developed a supply chain model with investment in emission reduction technology. They analyzed the consequences of emission trading policy on supply chain decisions.…”

Section: Literature Reviewmentioning

confidence: 99%

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Effect of Green Technology Investment on a Production-Inventory System with Carbon Tax

Datta

2017

Advances in Operations Research

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Carbon emissions play the central role in global warming. Manufacturing firms are significant contributors to carbon emissions. In many countries, regulatory authorities are taking actions to reduce emissions. Carbon taxation and cap-and-trade schemes are two mechanisms implemented in many countries. In the present paper, the author analyzes a production-inventory model under a carbon tax system. The production rate is assumed to be a decision variable and can be set at any level within machine limits. A proportion of items produced are defective, and this proportion depends on the production rate. Demand depends on the selling price. Unit price is a decreasing function of the production rate. Emissions can be reduced to some extent by capital investment on green technology, and this capital investment amount is a decision variable. Customers are categorized as retail customers and wholesale customers. A discount is offered to the wholesale customers on the regular selling price. The results are illustrated by a numerical example and a sensitivity analysis is performed.

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Section: Model Parameterssupporting

confidence: 57%

“…The fraction of reduction is 0, when = 0, and tends to when tends to infinity. Lou et al [9] took = 1. The parameter reflects the efficiency of greener technology in reducing emission.…”

Section: Model Parametersmentioning

confidence: 99%

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Effect of Green Technology Investment on a Production-Inventory System with Carbon Tax

Datta

2017

Advances in Operations Research

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“…Ni et al [18] found that socially responsible or environmental performance is highest in the cooperative supply chain, where the supplier and the manufacturer jointly maximize the supply chain profit, mainly because the double marginalization problem is eliminated. Lou et al [19] also examined three supply chain configurations and found that cooperative supply chain in which the manufacturer and the retailer act as a single firm and the supply chain coordinated by a revenue sharing contract invest in emission reduction more than the decentralized supply chain. Klassen and Vachon [20] empirically showed that an increased collaboration in the supply chain helps the firms invest more in environmental programs.…”

Section: Literature Reviewmentioning

confidence: 99%

Supply Chain Coordination and Consumer Awareness for Pollution Reduction

Kim

Sim

2016

Sustainability

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Abstract:To understand the dynamics of the manufacturer's effort to reduce pollution in a supply chain consisting of manufacturer, retailer, and consumers, we analyze four cases according to consumer awareness of the pollution's harmful effect, i.e., environmentally aware versus ignorant, and supply chain coordination, i.e., competitive versus cooperative. Applying differential games, we derive managerial implications: the most significant is that the supply chain coordination strategy becomes irrelevant to reducing the pollution, if the consumers are not environmentally aware or sensitive enough. It highlights the critical role played by the consumer awareness in curbing the pollution in the supply chain. In addition, we find the transfer price and the potential market size are important factors to determine each case's relative effectiveness. Under a regular condition, where the transfer price from the retailer to the manufacturer is sufficiently high, the consumer-aware and competitive case can generate a better outcome in reducing the pollution than those with ignorant consumers. However, the opposite might occur if the transfer price is excessively low, giving the manufacturer little motivation to make an effort to reduce the pollution. For the cooperative supply chain, it is the potential market size that determines whether the consumer-aware case is better than the consumer-ignorant. In fact, it turns out that there is a stronger result, i.e., the feasibility condition enforces that the market is always big enough to make the consumer-aware cooperative case better than the consumer-ignorant cases. We further discuss managerial as well as policy implications of these analysis outcomes.

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“…Subsequently, EURO 6 was instated in 2014 and imposed in 2015. The stricter emission regulations induce technological competition and innovation [10] in the HDDE market, and in this situation, HDDE companies have to control the production of past-generation and new-generation HDDEs for the management of inventory and efficient operation of limited production facilities.…”

Section: Introductionmentioning

confidence: 99%

Demand Forecasting for Heavy-Duty Diesel Engines Considering Emission Regulations

2017

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Makers of heavy-duty diesel engines (HDDEs) need to reduce their inventory of old-generation products in preparation for the demand for next-generation products that satisfy new emission regulations. In this paper, a new demand forecasting model is proposed to reflect special conditions raised by the technological generational shift owing to new emission regulation enforcement. In addition, sensitivity analyses are conducted to better accommodate uncertainty involved at the time of prediction. Our proposed model can help support manufacturers' production and sales management for a series of products in response to new emission regulations.

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Investment Strategy of Emission-Reduction Technology in a Supply Chain

Cited by 85 publications

References 21 publications

Effect of Green Technology Investment on a Production-Inventory System with Carbon Tax

Effect of Green Technology Investment on a Production-Inventory System with Carbon Tax

Supply Chain Coordination and Consumer Awareness for Pollution Reduction

Demand Forecasting for Heavy-Duty Diesel Engines Considering Emission Regulations

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