Sustainability investment under cap-and-trade regulation

Dong, Chaohua; Shen, Bin; Chow, Pui-Sze; Yang, Liu; Ng, C. T.

doi:10.1007/s10479-013-1514-1

Cited by 304 publications

(203 citation statements)

References 33 publications

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“…To meet stakeholders' increasing expectations and reduce the risk of negative social and environmental externalities, apparel firms across all market levels, such as fast fashion brand H&M, outdoor wear brand Patagonia, and luxury brand Louis Vuitton, have implemented various approaches to enhance the level of sustainability in their supply chain management [6][7][8]. Being more sustainable is now key to developing the textile and apparel supply chain, and a number of issues and innovations relating to this goal have been examined in academic literature so far, including product returns, low carbon supply chain, corporate social responsibility, sustainable design operations, and sustainable competition [3,4,[8][9][10][11][12][13][14][15][16][17][18][19]. However, there is still a lack of further and intensive investigation of many other current issues relating to sustainable supply chain management in today's global textiles and apparel industry.…”

Section: Introductionmentioning

confidence: 99%

Sustainability Issues in Textile and Apparel Supply Chains

Shen

Dong

et al. 2017

Sustainability

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Abstract:Incorporating sustainability into the supply chain is becoming a key priority for many textile and apparel companies. For example, H&M, Patagonia, and The North Face have incorporated various approaches to enhance their levels of sustainable supply chain management. Typical approaches include sustainable product strategy, sustainable investment, sustainable performance evaluation, corporate social responsibility, and environmental management system adoption, which contribute to the development of sustainable supply chain management in the textile and apparel industry. In this paper, we introduce the fifteen articles published in this special issue, and summarize the key findings and future research directions in the area of textile and apparel sustainable supply chain management.

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Section: Introductionmentioning

confidence: 99%

Sustainability Issues in Textile and Apparel Supply Chains

Shen

Dong

et al. 2017

Sustainability

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“…We formulate the cost for reducing carbon emission factors as a linear function with respect to the emission level, but Swami and Shah (2013) and Dong et al (2014) assume a quadratic function. We should extend the current proposed model to include a quadratic or general convex function in formulating the cost for reducing carbon emissions.…”

Section: Discussionmentioning

confidence: 99%

Carbon Reduction Investments under Direct Shipment Strategy

Min¹

2015

Management Science and Financial Engineering

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Recently much research efforts have focused on how to manage carbon emissions in logistics operations. This paper formulates a model to determine an optimal shipment size with aims to minimize the total cost consisting not only of inventory and transportation costs but also cost for carbon emissions. Unlike the literature assuming carbon emission factors as a given condition, we consider the emission factors as decision variables. It is allowed to make an investment in improving carbon emission factors. The optimal investment decision is shown to be of a threshold type with respect to unit investment costs. Moreover, the findings in this work provide insights on the various elements of the investment decision and their impacts.

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“…In other industries, general sustainability analysis are usually related to government involvement and low carbon emission. For example, Reference [14] formulate the government's cap-and-trade regulation, and discuss how to improve environmental sustainability under this regulation via sustainability investment. Reference [1] analyze the effects of the cost of carbon emission, unequal lot sizes, and setup cost on the supply chain's decisions.…”

Section: Literature Reviewmentioning

confidence: 99%

Sustainability Analysis of Supply Chains with Fashion Products under Alternative Power Structures and Loss-Averse Supplier

2017

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Considering a supply chain with fashion products comprising of a supplier and a retailer, we study the sustainability of the supply chain with alternative power structures (either the supplier or the retailer has the option of acting as a leader to make the decisions first). We also examine the impact of the supplier's attitudes to loss on the supply chain's sustainability and profitability. We build game theoretical modes to characterize one property of the fashion industry: the wide use of buy-back contract, and obtain the following results: (1) Compared to wholesale price contract, buy-back contract reduces the sustainability of the supply chain, and this result is robust with alternative power structures. (2) Under alternative power structure, the sustainability index is increasing in the buy-back price in the supplier-as-the-leader scenario, while decreasing in the retailer-as-the-leader scenario. That is, the relationships between sustainability and buy-back price is completely reversed when the leader is changed. (3) The sustainability is improved when the supplier acts as the leader and the buy-back price is lower than a threshold, but the contrary holds when the buy-back price is high. (4) Buy-back contract helps to improve the sustainability of the supply chain when supplier is extremely loss-averse, because the loss-averse supplier has the incentives to reduce the ordering quantity as well as the overstocking risk.

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Sustainability investment under cap-and-trade regulation

Cited by 304 publications

References 33 publications

Sustainability Issues in Textile and Apparel Supply Chains

Sustainability Issues in Textile and Apparel Supply Chains

Carbon Reduction Investments under Direct Shipment Strategy

Sustainability Analysis of Supply Chains with Fashion Products under Alternative Power Structures and Loss-Averse Supplier

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