Design of sustainable supply chains under the emission trading scheme

A. Chaabane, A. Ramudhin and M. Paquet

International Journal of Production Economics, 2012, vol. 135, issue 1, 37-49

Abstract: Increase in environmental concerns together with legislations are forcing industries to take a fresh look at the impact of their supply chain operations on the environment. This paper introduces a mixed-integer linear programming based framework for sustainable supply chain design that considers life cycle assessment (LCA) principles in addition to the traditional material balance constraints at each node in the supply chain. Indeed, the framework distinguishes between solid and liquid wastes, as well as gaseous emissions due to various production processes and transportation systems. The framework is used to evaluate the tradeoffs between economic and environmental objectives under various cost and operating strategies in the aluminum industry. The results suggest that current legislation and Emission Trading Schemes (ETS) must be strengthened and harmonized at the global level in order to drive a meaningful environmental strategy. Moreover, the model demonstrates that efficient carbon management strategies will help decision makers to achieve sustainability objectives in a cost-effective manner.

Keywords: Sustainable supply chain design; Environment; Greenhouse gases emissions; Life cycle assessment; Reverse logistics; Emission trading scheme; Carbon management (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (170)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:135:y:2012:i:1:p:37-49

DOI: 10.1016/j.ijpe.2010.10.025

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