IDEAS home Printed from https://ideas.repec.org/a/spr/joptap/v203y2024i2d10.1007_s10957-023-02291-4.html
   My bibliography  Save this article

A Spatial Equilibrium Problem for the European Pulp and Paper Industry Under the Emission Trading System

Author

Listed:
  • Elisabetta Allevi

    (University of Brescia)

  • Adriana Gnudi

    (University of Bergamo)

  • Igor V. Konnov

    (Kazan Federal University)

  • Giorgia Oggioni

    (University of Brescia)

  • Rossana Riccardi

    (University of Brescia)

Abstract

We propose a spatial equilibrium problem for a pulp and paper supply chain network under the Emission Trading System (ETS) and the circular economy principles. The developed closed-loop supply chain model, based on the variational inequality theory, accounts for the forest deployment and the production of paper using both virgin pulp and recyclable paper waste in an area that is subject to the ETS. In addition, it considers the exchanges of virgin pulp, paper, recyclable and not-recyclable paper waste between this regulated area and geographical zones where no environmental policies apply. The aim of this paper is to investigate the ETS impacts on the pulp and paper industries located in an environmentally regulated area in terms of operating costs, production and trading volumes of the aforementioned commodities, and emissions generated. The case study focuses on the European pulp and paper companies, which are among the energy-intensive industries deemed to be exposed to the carbon leakage risk as a consequence of the ETS application. Sensitivity analyses on the carbon price value and on the trade flexibility are conducted. Our results show that the ETS implies additional costs for the European pulp and paper companies and induces them to resort more on imports of virgin pulp and paper from not-regulated zones.

Suggested Citation

  • Elisabetta Allevi & Adriana Gnudi & Igor V. Konnov & Giorgia Oggioni & Rossana Riccardi, 2024. "A Spatial Equilibrium Problem for the European Pulp and Paper Industry Under the Emission Trading System," Journal of Optimization Theory and Applications, Springer, vol. 203(2), pages 1767-1793, November.
    • Handle: RePEc:spr:joptap:v:203:y:2024:i:2:d:10.1007_s10957-023-02291-4
    DOI: 10.1007/s10957-023-02291-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10957-023-02291-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10957-023-02291-4?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. Stede, Jan & Pauliuk, Stefan & Hardadi, Gilang & Neuhoff, Karsten, 2021. "Carbon pricing of basic materials: Incentives and risks for the value chain and consumers," Ecological Economics, Elsevier, vol. 189(C).
    2. Carlsson, Dick & Ronnqvist, Mikael, 2005. "Supply chain management in forestry--case studies at Sodra Cell AB," European Journal of Operational Research, Elsevier, vol. 163(3), pages 589-616, June.
    3. Runar Brännlund & Yangho Chung & Rolf Färe & Shawna Grosskopf, 1998. "Emissions Trading and Profitability: The Swedish Pulp and Paper Industry," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(3), pages 345-356, October.
    4. Kallrath, Julia & Rebennack, Steffen & Kallrath, Josef & Kusche, Rüdiger, 2014. "Solving real-world cutting stock-problems in the paper industry: Mathematical approaches, experience and challenges," European Journal of Operational Research, Elsevier, vol. 238(1), pages 374-389.
    5. Andrew Philpott & Graeme Everett, 2001. "Supply Chain Optimisation in the Paper Industry," Annals of Operations Research, Springer, vol. 108(1), pages 225-237, November.
    6. Igor Konnov, 2021. "Variational Inequality Type Formulations of General Market Equilibrium Problems with Local Information," Journal of Optimization Theory and Applications, Springer, vol. 188(2), pages 332-355, February.
    7. Patrick Schroeder & Kartika Anggraeni & Uwe Weber, 2019. "The Relevance of Circular Economy Practices to the Sustainable Development Goals," Journal of Industrial Ecology, Yale University, vol. 23(1), pages 77-95, February.
    8. Igor Konnov, 2009. "Decomposition Approaches for Constrained Spatial Auction Market Problems," Networks and Spatial Economics, Springer, vol. 9(4), pages 505-524, December.
    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. Jones, Philip C. & Ohlmann, Jeffrey W., 2008. "Long-range timber supply planning for a vertically integrated paper mill," European Journal of Operational Research, Elsevier, vol. 191(2), pages 558-571, December.
    2. Florian Jaehn & Raisa Juopperi, 2019. "A Description of Supply Chain Planning Problems in the Paper Industry with Literature Review," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 36(01), pages 1-39, February.
    3. Pina Puntillo, 2023. "Circular economy business models: Towards achieving sustainable development goals in the waste management sector—Empirical evidence and theoretical implications," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 941-954, March.
    4. Muhammad Altaf & Wesam Salah Alaloul & Muhammad Ali Musarat & Abdul Hannan Qureshi, 2023. "Life cycle cost analysis (LCCA) of construction projects: sustainability perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(11), pages 12071-12118, November.
    5. German Arana‐Landin & Waleska Sigüenza & Beñat Landeta‐Manzano & Iker Laskurain‐Iturbe, 2024. "Circular economy: On the road to ISO 59000 family of standards," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1977-2009, May.
    6. Amanda O. C. Ayres & Betania S. C. Campello & Washington A. Oliveira & Carla T. L. S. Ghidini, 2021. "A Bi-Integrated Model for coupling lot-sizing and cutting-stock problems," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 43(4), pages 1047-1076, December.
    7. Bruno Michel Roman Pais Seles & Janaina Mascarenhas & Ana Beatriz Lopes de Sousa Jabbour & Adriana Hoffman Trevisan, 2022. "Smoothing the circular economy transition: The role of resources and capabilities enablers," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1814-1837, May.
    8. Wei, Aiping & Zakari, Abdulrasheed & Tawiah, Vincent & Aleesa, Noha, 2024. "Cultivating resilient economies through responsible mineral resource trade: Does eco-resourcing rebate matter?," Resources Policy, Elsevier, vol. 89(C).
    9. Durán-Romero, Gemma & López, Ana M. & Beliaeva, Tatiana & Ferasso, Marcos & Garonne, Christophe & Jones, Paul, 2020. "Bridging the gap between circular economy and climate change mitigation policies through eco-innovations and Quintuple Helix Model," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    10. Toorajipour, Reza & Oghazi, Pejvak & Sohrabpour, Vahid & Patel, Pankaj C. & Mostaghel, Rana, 2022. "Block by block: A blockchain-based peer-to-peer business transaction for international trade," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    11. D. D’Amato, 2021. "Sustainability Narratives as Transformative Solution Pathways: Zooming in on the Circular Economy," Circular Economy and Sustainability, Springer, vol. 1(1), pages 231-242, June.
    12. Nader Naderializadeh & Kevin A. Crowe, 2020. "Formulating the integrated forest harvest-scheduling model to reduce the cost of the road-networks," Operational Research, Springer, vol. 20(4), pages 2283-2306, December.
    13. Benedetta Cotta, 0. "What goes around, comes around? Access and allocation problems in Global North–South waste trade," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 0, pages 1-15.
    14. Hoogstra-Klein, Marjanke A. & Meijboom, Kars, 2021. "A qualitative exploration of the wood product supply chain – investigating the possibilities and desirability of an increased demand orientation," Forest Policy and Economics, Elsevier, vol. 133(C).
    15. Carmen Ruiz-Puente & Daniel Jato-Espino, 2020. "Systemic Analysis of the Contributions of Co-Located Industrial Symbiosis to Achieve Sustainable Development in an Industrial Park in Northern Spain," Sustainability, MDPI, vol. 12(14), pages 1-28, July.
    16. Milousi, Maria & Souliotis, Manolis, 2023. "A circular economy approach to residential solar thermal systems," Renewable Energy, Elsevier, vol. 207(C), pages 242-252.
    17. Fabio A. Madau & Brunella Arru & Roberto Furesi & Pietro Pulina, 2020. "Insect Farming for Feed and Food Production from a Circular Business Model Perspective," Sustainability, MDPI, vol. 12(13), pages 1-15, July.
    18. Alfons Oude Lansink & Arno Van Der Vlist, 2008. "Non‐Parametric Modelling of CO2 Emission Quota," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(3), pages 487-497, September.
    19. Alessia Amato & Konstantina Tsigkou & Alessandro Becci & Francesca Beolchini & Nicolò M. Ippolito & Francesco Ferella, 2023. "Life Cycle Assessment of Biomethane vs. Fossil Methane Production and Supply," Energies, MDPI, vol. 16(12), pages 1-18, June.
    20. Alejandro Aristi Capetillo & Fredric Bauer & Cristina Chaminade, 2023. "Emerging Technologies Supporting the Transition to a Circular Economy in the Plastic Materials Value Chain," Circular Economy and Sustainability, Springer, vol. 3(2), pages 953-982, June.

    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:spr:joptap:v:203:y:2024:i:2:d:10.1007_s10957-023-02291-4. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.