General multi-product, multi-pollutant market pollution permit model: A variational inequality approach

In this paper, we develop a new model in marketable pollution permits that consists of perfectly competitive, multi-product, multi-pollutant firms. The formulation and qualitative analysis of the model, as well as the computational approach, are based on the theory of variational inequalities

Evaluating the effects of environmental regulations on a closed-loop supply chain network: a variational inequality approach

Global climate change has encouraged international and regional adoption of pollution taxes and carbon emission reduction policies. Europe has taken the leadership in environmental regulations by introducing the European Union Emissions Trading System (EU-ETS) in 2005 and by promoting a set of policies destined to lower carbon emissions from energy, industrial, and transport sectors. These environmental policies have significantly affected the production choices of these European sectors. Considering this framework, the objective of this paper is to evaluate the effects of the application of environmental policies in a multitiered closed-loop supply chain network where raw material suppliers, manufacturers, consumers, and recovery centers operate. In particular, we assume that manufacturers are subject to the EU-ETS and a carbon tax is imposed on truck transport. In this way, the developed model captures carbon emission regulations, recycling, transportation and technological factors within a unified framework. In particular, it allows for evaluating the impacts of the considered environmental regulations on carbon emissions, product flows, and prices. The proposed model is optimized and solved by using the theory of variational inequalities. Our analysis shows that the combined application of the EU-ETS at the manufacturers' tier and the carbon tax on truck transport implies additional costs for producers that reduce their good provisions. On the other side, this has a positive outcome for {the} environment since CO2 emissions reduce. Moreover, an increase of the efficiency level of the recycling process increments the availability of reusable raw material in the reverse supply chain. Finally, the distance between {a} couple of CLSC tiers plays a very important role. The lower is the distance covered by vehicles, the higher is the production of goods and the lower is the amount of CO2 emitted

Sustainability and consumer behaviour

Existing research suggests that sustainable strategies of many corporate organizations are internally focused and aim to boost companies’ brand images, improve their competitive positions and to increase wealth for their shareholders. Such sustainable initiatives lack a genuine commitment to long-term green production, ecological integrity, human welfare and green buying behaviour. Yet, not many consumers have developed the mindset to buy green products even when companies strive hard to preserve sustainable standards through externally-focused initiatives to promote fair trade, ecological protection and social justice. While consumers’ demand for products can be analyzed and predicted through economic models, their green consumption behaviour is not always predictable and goes far beyond simple rational analysis. Some consumers even take sustainability matters less seriously due to complex and sometimes divisive sustainability discussions by world leaders. Models to address these sustainability issues are also limited. This chapter, therefore, uses the lens of cohered emergent theory to propose a corporate sustainability model that can promote pro-environmental practices and inspire firms to involve consumers actively in their sustainable development activities. It encourages consumers to become green buyers who consume goods and service responsibly and motivate firms to develop marketing campaigns that are eco-friendly and ethically acceptable to changing consumer behaviour. The chapter also motivates policymakers to introduce policies that can actively bring the ideas of corporate managers, the consuming public, and other environmental-friendly stakeholders together to develop adaptive production and consumption programmes that can promote economic benefits, eco-friendly environments and social justice

Environmental and Cost Synergy in Supply Chain Network Integration in Mergers and Acquisitions

In this paper, we quantify and assess, from a supply chain network perspective, the environmental effects resulting when a merger or acquisition occurs and the resulting synergy from possible strategic gains. We develop a multicriteria decision-making supply chain network framework that captures the economic activities of manufacturing, storage, and distribution pre and post the merger. The models yield the system optima associated with the minimization of the total costs and the total emissions under firm-specific weights. We propose a synergy measure that captures the total generalized cost. We then apply the new mathematical framework to quantify the synergy obtained for specific numerical examples