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A unified cooperative model for environmental costs in supply chains: the Shapley value for the linear case

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  • Francesco Ciardiello

    (University of Sheffield)

  • Andrea Genovese

    (University of Sheffield)

  • Andrew Simpson

    (University of Sheffield)

Abstract

This paper provides a normative framework based on cooperative game theory aimed at studying the problem of pollution responsibility allocation across multi-tier supply chains. The model is further developed with reference to the case of a linear supply chain, by using three responsibility principles (namely: Upstream, Downstream and Local Responsibility). Allocation rules are derived; also, desirable properties in terms of fairness, efficiency and transparency are introduced, in order to characterize such rules. Furthermore, a stability concept for efficient allocations is formulated. An example of a possible application of the introduced cost allocation rules is provided.

Suggested Citation

  • Francesco Ciardiello & Andrea Genovese & Andrew Simpson, 2020. "A unified cooperative model for environmental costs in supply chains: the Shapley value for the linear case," Annals of Operations Research, Springer, vol. 290(1), pages 421-437, July.
    • Handle: RePEc:spr:annopr:v:290:y:2020:i:1:d:10.1007_s10479-018-3028-3
    DOI: 10.1007/s10479-018-3028-3
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