A unified cooperative model for environmental costs in supply chains: the Shapley value for the linear case

Francesco Ciardiello, Andrea Genovese () and Andrew Simpson
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Francesco Ciardiello: University of Sheffield
Andrea Genovese: University of Sheffield
Andrew Simpson: University of Sheffield

Annals of Operations Research, 2020, vol. 290, issue 1, No 21, 437 pages

Abstract: Abstract This paper provides a normative framework based on cooperative game theory aimed at studying the problem of pollution responsibility allocation across multi-tier supply chains. The model is further developed with reference to the case of a linear supply chain, by using three responsibility principles (namely: Upstream, Downstream and Local Responsibility). Allocation rules are derived; also, desirable properties in terms of fairness, efficiency and transparency are introduced, in order to characterize such rules. Furthermore, a stability concept for efficient allocations is formulated. An example of a possible application of the introduced cost allocation rules is provided.

Keywords: Supply chains; Pollution responsibility allocation; Game theory; Shapley value (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s10479-018-3028-3

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