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.
Original language | English |
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Peer-reviewed scientific journal | International Journal of Production Economics |
Volume | 164 |
Issue number | June |
Pages (from-to) | 206-215 |
Number of pages | 10 |
ISSN | 0925-5273 |
DOIs | |
Publication status | Published - 18.12.2014 |
MoE publication type | A1 Journal article - refereed |
Keywords
- 512 Business and Management
- Green supply chain
- Environmental sustainability
- Carbon tax policy scheme
- Carbon pricing
- Cap-and-trade market
- Carbon trading
- Nested
- Integrated Cross-Entropy