The Optimal Decisions for a Sustainable Supply Chain with Carbon Information Asymmetry under Cap-and-Trade

Yuan, Baiyun; Gu, Bingmei; Jin, Gong; Lei, Xia; Xu, Chunming

doi:10.3390/su10041002

Cited by 31 publications

(35 citation statements)

References 36 publications

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“…Given that the explosive penetration of the Internet and Mobile Internet that has laid a sound foundation in China, which has been rapidly skyrocketing (China has greater Internet and mobile Internet development among emerging market economies with penetration ratios of 45% and 37.1%, respectively, in 2013, reported by Lei [19]), our study has important and timely implications not only for academics and practitioners, but for policy makers as well. Since the financing difficulty often faced by small and micro businesses comes from the information asymmetry between fund demanders and fund suppliers, which is essentially the classic agency problem emphasized by Jensen and Meckeling [28], our study also contributes to the large body of literature on information economics or agency theory (e.g., [16,[28][29][30][31][32][33][34][35][36]). Furthermore, our work also enriches a long literature on sustainable growth of small business.…”

Section: Introductionmentioning

confidence: 83%

“…For small firms, nevertheless, this issue is more eye-catching and more prominent, which may partially come from their limited financing sources. Starting from Jensen and Meckeling [28], a growing body of literature [16,[29][30][31][32][33][34][35][36] has proposed a variety of theoretical framework and applied various empirical models to understand financing difficulty of firms in depth and to estimate the important effect of information asymmetry on firm growth. Feltham and Hofmann [31] proposed a principal-agent model in a multi-agent/multi-task context; as shown by most principal-agent models, information asymmetry cannot be perfectly addressed in their model, but second-best solution can be reached through proper incentive mechanism designs as proved in their paper.…”

Section: Related Literaturementioning

confidence: 99%

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Access to the Internet and Access to Finance: Theory and Evidence

Chen

Gong²,

Chu

et al. 2018

Sustainability

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This paper aims at investigating the relationship between the use of the Internet and access to external finance of small and micro businesses, both theoretically and empirically. We first develop a theoretical model to explore how access to the Internet affects the credit availability of firms. The model suggests that access to the Internet can effectively mitigate financing difficulty of firms by alleviating information asymmetry and reducing agency cost, and thus can promote the sustainable development of those firms. The model also shows that access to the Internet can improve social welfare based on aforementioned mechanism. Using China household finance data from China Household Finance Survey, we tested the impact of access to the Internet on access to finance of small and micro businesses. Our empirical results confirm the positive role played by access to the Internet in alleviating financing difficulty of those firms. Moreover, we also found evidence that access to the Internet can reduce borrowers' dependence on physical branches of banks when making bank choice decision for loan applications. Our evidence also implies that access to the Internet is conducive to the sustainable development of small and micro businesses via mitigating their financing difficulty.Keywords: access to the Internet; access to finance; sustainable development of small and micro businesses JEL Classification: G21; O16

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Section: Introductionmentioning

confidence: 83%

Section: Related Literaturementioning

confidence: 99%

Access to the Internet and Access to Finance: Theory and Evidence

Chen

Gong²,

Chu

et al. 2018

Sustainability

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show abstract

“…Second, in the stochastic model, the authors of [28] provided an excellent summary of the previous works in this research stream. As can be inferred from the above summary, the previous CAT stochastic models, including the work of [29], focused on sustainable SCM coordination rather than determining the optimal production level for individual manufacturing firms. On the other hand, this study has significant theoretical contributions in that it analyzes the optimal production amount of individual manufacturing firms with BCR by applying the well-known newsvendor models in POM literature.…”

Section: Literature Reviewmentioning

confidence: 99%

The Optimal Emission Decisions of Sustainable Production with Innovative Baseline Credit Regulations

2019

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In the era of the fourth industrial revolution, the international community is striving to establish a coordinated system to prevent fatal climate change in a global sense. As a result of such changes in business environments, a new issue, sustainability, has recently presented a paradigm shift and new research opportunity in which the theories and practices in traditional production and operations management are being reinterpreted and reapplied in relation to this emerging issue. Under this research background, we consider an optimal emission-trading problem under a cap-and-trade (CAT) emission regulation when the customers' demand is given as an arbitrary probability distribution. Such a CAT approach to reduce the amount of emissions is a normative system for the sustainable production of manufacturing firms, which is also closely related to a well-known open innovation in literature of inventory management. Then, we formulate two stochastic inventory optimization models, which can be applied immediately for two famous CAT policies that exist in reality. In particular, our objective is to draw theoretical and practical implications for baseline credit emission regulations, which are innovative and government-led emission regulation policies, with a well-known newsvendor analysis. For our analytical results, we first show that our objective functions are piecewise linear and (quasi)-concave. Thus, it is found that there exists a unique optimal solution to the problem. Second, we successfully obtain the closed-form optimal solutions for the two models considered. Finally, we conduct a sensitivity analysis through a comparative static analysis to examine how the model parameters can affect the optimal solution in each model. All these analytical results and implications are consistent with previous studies in the literature, as well as with our insights for the models.

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“…Björklund [31], Bottani, et al [26], He and Zhang [27], Plambeck [15], Wolf and Seuring [22], Yuan, et al [28] Discussing collaboration and information sharing. connecting collaboration and energy efficiency…”

Section: Collabo-ration Between Actorsmentioning

confidence: 99%

Energy Efficiency in Logistics: An Interactive Approach to Capacity Utilisation

Wehner

2018

Sustainability

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Logistics operations are energy-consuming and impact the environment negatively. Improving energy efficiency in logistics is crucial for environmental sustainability and can be achieved by increasing the utilisation of capacity. This paper takes an interactive approach to capacity utilisation, to contribute to sustainable freight transport and logistics, by identifying its causes and mitigations. From literature, a conceptual framework was developed to highlight different system levels in the logistics system, in which the energy efficiency improvement potential can be found and that are summarised in the categories activities, actors, and areas. Through semi-structured interviews with representatives of nine companies, empirical data was collected to validate the framework of the causes of the unutilised capacity and proposed mitigations. The results suggest that activities, such as inflexibilities and limited information sharing as well as actors' over-delivery of logistics services, incorrect price setting, and sales campaigns can cause unutilised capacity, and that problem areas include i.a. poor integration of reversed logistics and the last mile. The paper contributes by categorising causes of unutilised capacity and linking them to mitigations in a framework, providing a critical view towards fill rates, highlighting the need for a standardised approach to measure environmental impact that enables comparison between companies and underlining that costs are not an appropriate indicator for measuring environmental impact.

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The Optimal Decisions for a Sustainable Supply Chain with Carbon Information Asymmetry under Cap-and-Trade

Cited by 31 publications

References 36 publications

Access to the Internet and Access to Finance: Theory and Evidence

Access to the Internet and Access to Finance: Theory and Evidence

The Optimal Emission Decisions of Sustainable Production with Innovative Baseline Credit Regulations

Energy Efficiency in Logistics: An Interactive Approach to Capacity Utilisation

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