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Stimulating Investments in Energy Efficiency Through Supply Chain Integration

Author

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  • Beatrice Marchi

    (Department of Mechanical and Industrial Engineering, Università degli Studi di Brescia, Via Branze, 38, I-25123 Brescia, Italy)

  • Simone Zanoni

    (Department of Mechanical and Industrial Engineering, Università degli Studi di Brescia, Via Branze, 38, I-25123 Brescia, Italy)

  • Ivan Ferretti

    (Department of Mechanical and Industrial Engineering, Università degli Studi di Brescia, Via Branze, 38, I-25123 Brescia, Italy)

  • Lucio E. Zavanella

    (Department of Mechanical and Industrial Engineering, Università degli Studi di Brescia, Via Branze, 38, I-25123 Brescia, Italy)

Abstract

Attention to energy efficiency is recently experiencing substantial growth. To overcome the several barriers currently existing that represent an obstacle to the successful implementation of the wide set of energy efficiency measures available, the cooperation among members of a supply chain offers a huge potential. In supply chains, in addition to the traditional coordination of the operations, the members may also share financial resources or act jointly on the capital market. This study presents a two-stage supply chain model considering the opportunity to invest in new energy efficient technologies which are affected by learning effects: the member of the supply chain with better energy performance and/or better financial conditions may find it more profitable to invest in the development of the energy efficiency of its partner. The objective of the model is to determine the optimal investment for each supply chain member so as to maximize the Net Present Value of the supply chain. The impacts of the proposed joint decision-making are investigated through some numerical analysis and managerial insights are proposed: the joint decision-making process on the financial flows for the energy efficiency investments results are especially advantageous (up to a 20% increase of the supply chain Net Present Value) when members have different access to capital, which could be the result of different economic conditions in companies’ countries, as well as different credit policies or different credit ratings.

Suggested Citation

  • Beatrice Marchi & Simone Zanoni & Ivan Ferretti & Lucio E. Zavanella, 2018. "Stimulating Investments in Energy Efficiency Through Supply Chain Integration," Energies, MDPI, vol. 11(4), pages 1-13, April.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:4:p:858-:d:139871
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    References listed on IDEAS

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    4. Beatrice Marchi & Simone Zanoni & Ivan Ferretti, 2019. "Energy Efficiency Investments in Industry with Uncertain Demand Rate: Effects on the Specific Energy Consumption," Energies, MDPI, vol. 13(1), pages 1-14, December.
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    7. Tamás Bányai, 2018. "Real-Time Decision Making in First Mile and Last Mile Logistics: How Smart Scheduling Affects Energy Efficiency of Hyperconnected Supply Chain Solutions," Energies, MDPI, vol. 11(7), pages 1-25, July.
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    11. K. M. Kamna & Prerna Gautam & Chandra K. Jaggi, 0. "Sustainable inventory policy for an imperfect production system with energy usage and volume agility," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 0, pages 1-9.
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    13. Marchi, B. & Zanoni, S. & Zavanella, L.E. & Jaber, M.Y., 2019. "Supply chain models with greenhouse gases emissions, energy usage, imperfect process under different coordination decisions," International Journal of Production Economics, Elsevier, vol. 211(C), pages 145-153.
    14. Joakim Haraldsson & Maria T. Johansson, 2019. "Energy Efficiency in the Supply Chains of the Aluminium Industry: The Cases of Five Products Made in Sweden," Energies, MDPI, vol. 12(2), pages 1-25, January.
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    18. K. M. Kamna & Prerna Gautam & Chandra K. Jaggi, 2021. "Sustainable inventory policy for an imperfect production system with energy usage and volume agility," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 12(1), pages 44-52, February.
    19. Asif Iqbal Malik & Byung Soo Kim, 2020. "A Constrained Production System Involving Production Flexibility and Carbon Emissions," Mathematics, MDPI, vol. 8(2), pages 1-21, February.
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    21. A S M Monjurul Hasan & Mohammad Rokonuzzaman & Rashedul Amin Tuhin & Shah Md. Salimullah & Mahfuz Ullah & Taiyeb Hasan Sakib & Patrik Thollander, 2019. "Drivers and Barriers to Industrial Energy Efficiency in Textile Industries of Bangladesh," Energies, MDPI, vol. 12(9), pages 1-19, May.

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