IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v90y2016icp196-205.html
   My bibliography  Save this article

Effects of carbon emission reduction policies on transportation mode selections with stochastic demand

Author

Listed:
  • Chen, Xu
  • Wang, Xiaojun

Abstract

We are witnessing more frequent extreme weather events due to the global warming. There is an urgent need for governments, industries, general public, and academics to take coordinated actions in order to tackle the challenges imposed by the climate change. It is essential to incorporate the environmental objective in the transportation mode selection problem as transportation is a main contributor to carbon emissions. With this in mind, our paper studies the retailer’s ordering and transportation mode selection problem using stochastic customer demand and investigates the optimal ordering and transportation mode selection decisions under different carbon emission reduction policies. Our analytical results reveal that there are some important transportation mode shifting thresholds under different carbon emissions reduction policies. These findings do not only help firms to make optimal decisions under different carbon emission reduction policies but also support policy makers to develop effective policies on carbon emissions reduction.

Suggested Citation

  • Chen, Xu & Wang, Xiaojun, 2016. "Effects of carbon emission reduction policies on transportation mode selections with stochastic demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 196-205.
    • Handle: RePEc:eee:transe:v:90:y:2016:i:c:p:196-205
    DOI: 10.1016/j.tre.2015.11.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554515002112
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2015.11.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kiesmüller, G.P. & de Kok, A.G. & Fransoo, J.C., 2005. "Transportation mode selection with positive manufacturing lead time," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(6), pages 511-530, November.
    2. Kristel M. R. Hoen & Tarkan Tan & Jan C. Fransoo & Geert-Jan van Houtum, 2014. "Switching Transport Modes to Meet Voluntary Carbon Emission Targets," Transportation Science, INFORMS, vol. 48(4), pages 592-608, November.
    3. Demir, Emrah & Bektaş, Tolga & Laporte, Gilbert, 2014. "A review of recent research on green road freight transportation," European Journal of Operational Research, Elsevier, vol. 237(3), pages 775-793.
    4. Xu Chen & Gang Hao, 2015. "Sustainable pricing and production policies for two competing firms with carbon emissions tax," International Journal of Production Research, Taylor & Francis Journals, vol. 53(21), pages 6408-6420, November.
    5. Sanchez Rodrigues, V. & Pettit, S. & Harris, I. & Beresford, A. & Piecyk, M. & Yang, Z. & Ng, A., 2015. "UK supply chain carbon mitigation strategies using alternative ports and multimodal freight transport operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 78(C), pages 40-56.
    6. Choi, Tsan-Ming, 2013. "Local sourcing and fashion quick response system: The impacts of carbon footprint tax," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 55(C), pages 43-54.
    7. J Bauer & T Bektaş & T G Crainic, 2010. "Minimizing greenhouse gas emissions in intermodal freight transport: an application to rail service design," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(3), pages 530-542, March.
    8. Dekker, Rommert & Bloemhof, Jacqueline & Mallidis, Ioannis, 2012. "Operations Research for green logistics – An overview of aspects, issues, contributions and challenges," European Journal of Operational Research, Elsevier, vol. 219(3), pages 671-679.
    9. Richard L. Revesz & Peter H. Howard & Kenneth Arrow & Lawrence H. Goulder & Robert E. Kopp & Michael A. Livermore & Michael Oppenheimer & Thomas Sterner, 2014. "Global warming: Improve economic models of climate change," Nature, Nature, vol. 508(7495), pages 173-175, April.
    10. Michael Hanemann, 2010. "Cap-and-trade: a sufficient or necessary condition for emission reduction?," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 26(2), pages 225-252, Summer.
    11. Wang, Xiaojun & Chan, Hing Kai & Yee, Rachel W.Y. & Diaz-Rainey, Ivan, 2012. "A two-stage fuzzy-AHP model for risk assessment of implementing green initiatives in the fashion supply chain," International Journal of Production Economics, Elsevier, vol. 135(2), pages 595-606.
    12. Cohen, Mark A. & Vandenbergh, Michael P., 2012. "The potential role of carbon labeling in a green economy," Energy Economics, Elsevier, vol. 34(S1), pages 53-63.
    13. Zhu, Bangzhu & Wei, Yiming, 2013. "Carbon price forecasting with a novel hybrid ARIMA and least squares support vector machines methodology," Omega, Elsevier, vol. 41(3), pages 517-524.
    14. Sarkis, Joseph & Zhu, Qinghua & Lai, Kee-hung, 2011. "An organizational theoretic review of green supply chain management literature," International Journal of Production Economics, Elsevier, vol. 130(1), pages 1-15, March.
    15. Chen, Kang & Yang, Zhongzhen & Notteboom, Theo, 2014. "The design of coastal shipping services subject to carbon emission reduction targets and state subsidy levels," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 192-211.
    16. Bae, Sang Hoo & Sarkis, Joseph & Yoo, Chung Sik, 2011. "Greening transportation fleets: Insights from a two-stage game theoretic model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 793-807.
    17. Wang, Xiaojun & Chan, Hing Kai & Li, Dong, 2015. "A case study of an integrated fuzzy methodology for green product development," European Journal of Operational Research, Elsevier, vol. 241(1), pages 212-223.
    18. Jerome Vanclay & John Shortiss & Scott Aulsebrook & Angus Gillespie & Ben Howell & Rhoda Johanni & Michael Maher & Kelly Mitchell & Mark Stewart & Jim Yates, 2011. "Customer Response to Carbon Labelling of Groceries," Journal of Consumer Policy, Springer, vol. 34(1), pages 153-160, March.
    19. Tsamboulas, Dimitrios & Vrenken, Huub & Lekka, Anna-Maria, 2007. "Assessment of a transport policy potential for intermodal mode shift on a European scale," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(8), pages 715-733, October.
    20. Chen, Xu & Wang, Xiaojun, 2015. "Free or bundled: Channel selection decisions under different power structures," Omega, Elsevier, vol. 53(C), pages 11-20.
    21. Mansouri, S. Afshin & Lee, Habin & Aluko, Oluwakayode, 2015. "Multi-objective decision support to enhance environmental sustainability in maritime shipping: A review and future directions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 78(C), pages 3-18.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schaefer, Brian & Konur, Dinçer, 2015. "Economic and environmental considerations in a continuous review inventory control system with integrated transportation decisions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 142-165.
    2. Konur, Dinçer, 2014. "Carbon constrained integrated inventory control and truckload transportation with heterogeneous freight trucks," International Journal of Production Economics, Elsevier, vol. 153(C), pages 268-279.
    3. Mohammadi, M. & Torabi, S.A. & Tavakkoli-Moghaddam, R., 2014. "Sustainable hub location under mixed uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 62(C), pages 89-115.
    4. Y Bouchery & Asma Ghaffari & Zied Jemai & Jan C Fransoo, 2016. "Sustainable transportation and order quantity: insights from multiobjective optimization," Post-Print hal-01954465, HAL.
    5. Nils Boysen & Dirk Briskorn & Simon Emde, 2018. "Scheduling electric vehicles and locating charging stations on a path," Journal of Scheduling, Springer, vol. 21(1), pages 111-126, February.
    6. Bektaş, Tolga & Ehmke, Jan Fabian & Psaraftis, Harilaos N. & Puchinger, Jakob, 2019. "The role of operational research in green freight transportation," European Journal of Operational Research, Elsevier, vol. 274(3), pages 807-823.
    7. Mohammad Asghari & Seyed Mohammad Javad Mirzapour Al-E-Hashem, 2021. "Green vehicle routing problem: A state-of-the-art review," Post-Print hal-03182944, HAL.
    8. Palak, Gökçe & Ekşioğlu, Sandra Duni & Geunes, Joseph, 2014. "Analyzing the impacts of carbon regulatory mechanisms on supplier and mode selection decisions: An application to a biofuel supply chain," International Journal of Production Economics, Elsevier, vol. 154(C), pages 198-216.
    9. Asghari, Mohammad & Mirzapour Al-e-hashem, S. Mohammad J., 2021. "Green vehicle routing problem: A state-of-the-art review," International Journal of Production Economics, Elsevier, vol. 231(C).
    10. Song, Shuang & Govindan, Kannan & Xu, Lei & Du, Peng & Qiao, Xiaojiao, 2017. "Capacity and production planning with carbon emission constraints," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 132-150.
    11. Heilig, Leonard & Lalla-Ruiz, Eduardo & Voß, Stefan, 2017. "Multi-objective inter-terminal truck routing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 106(C), pages 178-202.
    12. Kelle, Peter & Song, Jinglu & Jin, Mingzhou & Schneider, Helmut & Claypool, Christopher, 2019. "Evaluation of operational and environmental sustainability tradeoffs in multimodal freight transportation planning," International Journal of Production Economics, Elsevier, vol. 209(C), pages 411-420.
    13. De, Manoranjan & Giri, B.C., 2020. "Modelling a closed-loop supply chain with a heterogeneous fleet under carbon emission reduction policy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    14. Konur, Dinçer, 2017. "Non-collaborative emission targets joining and quantity flow decisions in a Stackelberg setting," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 105(C), pages 60-82.
    15. Volker Frehe & Frank Teuteberg, 2017. "Information and communication technology in green logistics: status quo and research gaps," Management Review Quarterly, Springer, vol. 67(2), pages 65-96, April.
    16. Xiutian Shi & Yuan Qian & Ciwei Dong, 2017. "Economic and Environmental Performance of Fashion Supply Chain: The Joint Effect of Power Structure and Sustainable Investment," Sustainability, MDPI, vol. 9(6), pages 1-22, June.
    17. Sahar Validi & Arijit Bhattacharya & P. J. Byrne, 2020. "Sustainable distribution system design: a two-phase DoE-guided meta-heuristic solution approach for a three-echelon bi-objective AHP-integrated location-routing model," Annals of Operations Research, Springer, vol. 290(1), pages 191-222, July.
    18. Xinghua Wu & Sihuan Li, 2022. "Impacts of CSR Undertaking Modes on Technological Innovation and Carbon-Emission-Reduction Decisions of Supply Chain," Sustainability, MDPI, vol. 14(20), pages 1-25, October.
    19. Ali Najmi & Taha H. Rashidi & Alireza Abbasi & S. Travis Waller, 2017. "Reviewing the transport domain: an evolutionary bibliometrics and network analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 110(2), pages 843-865, February.
    20. Suzanne, Elodie & Absi, Nabil & Borodin, Valeria, 2020. "Towards circular economy in production planning: Challenges and opportunities," European Journal of Operational Research, Elsevier, vol. 287(1), pages 168-190.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:90:y:2016:i:c:p:196-205. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.