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Title: Tactical supply chain planning under a carbon tax policy scheme: a case study
Authors: Fahimnia, Behnam
Sarkis, Joseph
Choudhary, Alok K.
Eshragh, Ali
Keywords: Green supply chain
Environmental sustainability
Carbon tax policy scheme
Carbon pricing
Cap-and-trade market
Carbon trading
Nested integrated cross-entropy
Issue Date: 2015
Publisher: © Elsevier
Citation: FAHIMNIA, B. ... et al., 2015. Tactical supply chain planning under a carbon tax policy scheme: a case study. International Journal of Production Economics, 164, pp.206-215.
Abstract: 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.
Description: This paper was accepted for publication in the journal International Journal of Production Economics and the definitive published version is available at http://dx.doi.org/10.1016/j.ijpe.2014.12.015
Version: Accepted for publication
DOI: 10.1016/j.ijpe.2014.12.015
URI: https://dspace.lboro.ac.uk/2134/20929
Publisher Link: http://dx.doi.org/10.1016/j.ijpe.2014.12.015
ISSN: 0925-5273
Appears in Collections:Published Articles (Business)

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