Pricing and investment in manufacturing and logistics when environmental reputation matters

Elena Parilina, Fanjun Yao and Georges Zaccour

Transportation Research Part E: Logistics and Transportation Review, 2024, vol. 184, issue C

Abstract: We consider pricing and manufacturing and logistics investment decisions by a manufacturer facing environmentally concerned consumers. Demand depends on the price and manufacturer’s environmental performance comparatively to the industry. As environmental reputation can only be built over time and emissions reduction capacity requires sustainable investments in manufacturing and logistics processes over time, our model is dynamic. The planning horizon is divided into two stages, with the endogenously determined switching time between the two happening when a predefined capacity threshold is reached. We characterize the optimal decisions in both stages and provide a series of numerical illustrations varying the model’s parameter values.

Keywords: Environmental reputation; Pricing decisions; Manufacturing and logistics investment; Consumers’ environmental concern. (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1366554524000589
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:184:y:2024:i:c:s1366554524000589

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/bibliographic
http://www.elsevier. ... 600244/bibliographic

DOI: 10.1016/j.tre.2024.103468

Access Statistics for this article

Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley

More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().