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Investigating the option of installing small scale PVs on facility rooftops in a green supply chain

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  • Abdallah, Tarek
  • Diabat, Ali
  • Rigter, Jasper

Abstract

Industry practitioners and policy makers are under increasing pressure to promote green supply chains through the integration of renewable energy sources. Changing facilities from net energy users to net energy producers is a major concern for supply chain managers who are interested in greening their business. Building integrated photovoltaics (BIPV) is an innovative design idea to achieve energy positive buildings. In a BIPV building, photovoltaic (PV) arrays are integrated into the structure of the building in order to transform the incident solar radiation to clean energy that can be used in facility operations. This option is dependent on the economic attractiveness of the solar PVs, which, in return, depends on the policies (incentives, subsidies, feed-in tariff) in effect at the facility location, the efficiency of the PVs installed, and the amount of incident solar radiation at the facility location. We present an economic model that calculates the cost per kWh capacity of solar PVs installed and then integrate the decision of installing PVs of different sizes on the facility rooftops of a supply chain subject to the different environmental policies available. We study the implications of our model based on a sensitivity analysis for different carbon credit prices, PV generation costs, and feed-in tariff prices.

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  • Abdallah, Tarek & Diabat, Ali & Rigter, Jasper, 2013. "Investigating the option of installing small scale PVs on facility rooftops in a green supply chain," International Journal of Production Economics, Elsevier, vol. 146(2), pages 465-477.
    • Handle: RePEc:eee:proeco:v:146:y:2013:i:2:p:465-477
    DOI: 10.1016/j.ijpe.2013.03.016
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    References listed on IDEAS

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    1. Peters, Glen, 2008. "Reassessing Carbon Leakage," Conference papers 331753, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Chaabane, A. & Ramudhin, A. & Paquet, M., 2012. "Design of sustainable supply chains under the emission trading scheme," International Journal of Production Economics, Elsevier, vol. 135(1), pages 37-49.
    3. Lesser, Jonathan A. & Su, Xuejuan, 2008. "Design of an economically efficient feed-in tariff structure for renewable energy development," Energy Policy, Elsevier, vol. 36(3), pages 981-990, March.
    4. Pacca, Sergio & Sivaraman, Deepak & Keoleian, Gregory A., 2007. "Parameters affecting the life cycle performance of PV technologies and systems," Energy Policy, Elsevier, vol. 35(6), pages 3316-3326, June.
    5. Rigter, Jasper & Vidican, Georgeta, 2010. "Cost and optimal feed-in tariff for small scale photovoltaic systems in China," Energy Policy, Elsevier, vol. 38(11), pages 6989-7000, November.
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    Cited by:

    1. Sina Abbasi & Babek Erdebilli, 2023. "Green Closed-Loop Supply Chain Networks’ Response to Various Carbon Policies during COVID-19," Sustainability, MDPI, vol. 15(4), pages 1-30, February.
    2. Waltho, Cynthia & Elhedhli, Samir & Gzara, Fatma, 2019. "Green supply chain network design: A review focused on policy adoption and emission quantification," International Journal of Production Economics, Elsevier, vol. 208(C), pages 305-318.
    3. Devika Kannan & Kiran Garg & P. C. Jha & Ali Diabat, 2017. "Integrating disassembly line balancing in the planning of a reverse logistics network from the perspective of a third party provider," Annals of Operations Research, Springer, vol. 253(1), pages 353-376, June.
    4. Wolfgang Albrecht & Martin Steinrücke, 2020. "Continuous-time scheduling of production, distribution and sales in photovoltaic supply chains with declining prices," Flexible Services and Manufacturing Journal, Springer, vol. 32(3), pages 629-667, September.
    5. Diabat, Ali & Al-Salem, Mohammed, 2015. "An integrated supply chain problem with environmental considerations," International Journal of Production Economics, Elsevier, vol. 164(C), pages 330-338.
    6. Maria A. Franco & Stefan N. Groesser, 2021. "A Systematic Literature Review of the Solar Photovoltaic Value Chain for a Circular Economy," Sustainability, MDPI, vol. 13(17), pages 1-35, August.
    7. Hmouda, Ahmed M.O. & Orzes, Guido & Sauer, Philipp C., 2024. "Sustainable supply chain management in energy production: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 191(C).
    8. Magni, Carlo Alberto & Marchioni, Andrea & Baschieri, Davide, 2022. "Impact of financing and payout policy on the economic profitability of solar photovoltaic plants," International Journal of Production Economics, Elsevier, vol. 244(C).
    9. Eskandarpour, Majid & Dejax, Pierre & Miemczyk, Joe & Péton, Olivier, 2015. "Sustainable supply chain network design: An optimization-oriented review," Omega, Elsevier, vol. 54(C), pages 11-32.
    10. Wu, Kuo-Jui & Liao, Ching-Jong & Tseng, Ming-Lang & Chiu, Anthony S.F., 2015. "Exploring decisive factors in green supply chain practices under uncertainty," International Journal of Production Economics, Elsevier, vol. 159(C), pages 147-157.

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