Effects of carbon emission reduction policies on transportation mode selections with stochastic demand

Xu Chen; Xiaojun Wang

doi:10.1016/j.tre.2015.11.008

Effects of carbon emission reduction policies on transportation mode selections with stochastic demand

Xu Chen, Xiaojun Wang

Management

Research output: Contribution to journal › Article › peer-review

95 Citations (Scopus)

Abstract

We are witnessing more frequent extreme weather events due to the global warming. There is an urgent need for governments, industries, general public, and academics to take coordinated actions in order to tackle the challenges imposed by the climate change. It is essential to incorporate the environmental objective in the transportation mode selection problem as transportation is a main contributor to carbon emissions. With this in mind, our paper studies the retailer's ordering and transportation mode selection problem using stochastic customer demand and investigates the optimal ordering and transportation mode selection decisions under different carbon emission reduction policies. Our analytical results reveal that there are some important transportation mode shifting thresholds under different carbon emissions reduction policies. These findings do not only help firms to make optimal decisions under different carbon emission reduction policies but also support policy makers to develop effective policies on carbon emissions reduction.

Original language	English
Pages (from-to)	196-205
Number of pages	10
Journal	Transportation Research Part E: Logistics and Transportation Review
Volume	90
DOIs	https://doi.org/10.1016/j.tre.2015.11.008
Publication status	Published - 1 Jun 2016

Bibliographical note

Funding Information:
The first two authors are supported by the Royal Society International Exchanges cost share scheme (Ref. IE131228 ) with National Natural Science Foundation of China (No. 71411130137 ). The first author is also partially supported by National Natural Science Foundation of China (Nos. 71272128 and 71432003 ), Program for New Century Excellent Talents in University (No. NCET-12-0087 ), and Specialized Research Fund for the Doctoral Program of Higher Education (No. 20130185110006 ).

Publisher Copyright:
© 2015 Elsevier Ltd.

Keywords

Cap-and-trade
Carbon emission
Ordering policy
Stochastic demand
Supply chain risk
Transportation mode selection

ASJC Scopus subject areas

Business and International Management
Civil and Structural Engineering
Transportation

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1016/j.tre.2015.11.008

Cite this

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title = "Effects of carbon emission reduction policies on transportation mode selections with stochastic demand",

abstract = "We are witnessing more frequent extreme weather events due to the global warming. There is an urgent need for governments, industries, general public, and academics to take coordinated actions in order to tackle the challenges imposed by the climate change. It is essential to incorporate the environmental objective in the transportation mode selection problem as transportation is a main contributor to carbon emissions. With this in mind, our paper studies the retailer's ordering and transportation mode selection problem using stochastic customer demand and investigates the optimal ordering and transportation mode selection decisions under different carbon emission reduction policies. Our analytical results reveal that there are some important transportation mode shifting thresholds under different carbon emissions reduction policies. These findings do not only help firms to make optimal decisions under different carbon emission reduction policies but also support policy makers to develop effective policies on carbon emissions reduction.",

keywords = "Cap-and-trade, Carbon emission, Ordering policy, Stochastic demand, Supply chain risk, Transportation mode selection",

author = "Xu Chen and Xiaojun Wang",

note = "Funding Information: The first two authors are supported by the Royal Society International Exchanges cost share scheme (Ref. IE131228 ) with National Natural Science Foundation of China (No. 71411130137 ). The first author is also partially supported by National Natural Science Foundation of China (Nos. 71272128 and 71432003 ), Program for New Century Excellent Talents in University (No. NCET-12-0087 ), and Specialized Research Fund for the Doctoral Program of Higher Education (No. 20130185110006 ). Publisher Copyright: {\textcopyright} 2015 Elsevier Ltd.",

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doi = "10.1016/j.tre.2015.11.008",

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AU - Chen, Xu

AU - Wang, Xiaojun

N1 - Funding Information: The first two authors are supported by the Royal Society International Exchanges cost share scheme (Ref. IE131228 ) with National Natural Science Foundation of China (No. 71411130137 ). The first author is also partially supported by National Natural Science Foundation of China (Nos. 71272128 and 71432003 ), Program for New Century Excellent Talents in University (No. NCET-12-0087 ), and Specialized Research Fund for the Doctoral Program of Higher Education (No. 20130185110006 ). Publisher Copyright: © 2015 Elsevier Ltd.

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N2 - We are witnessing more frequent extreme weather events due to the global warming. There is an urgent need for governments, industries, general public, and academics to take coordinated actions in order to tackle the challenges imposed by the climate change. It is essential to incorporate the environmental objective in the transportation mode selection problem as transportation is a main contributor to carbon emissions. With this in mind, our paper studies the retailer's ordering and transportation mode selection problem using stochastic customer demand and investigates the optimal ordering and transportation mode selection decisions under different carbon emission reduction policies. Our analytical results reveal that there are some important transportation mode shifting thresholds under different carbon emissions reduction policies. These findings do not only help firms to make optimal decisions under different carbon emission reduction policies but also support policy makers to develop effective policies on carbon emissions reduction.

AB - We are witnessing more frequent extreme weather events due to the global warming. There is an urgent need for governments, industries, general public, and academics to take coordinated actions in order to tackle the challenges imposed by the climate change. It is essential to incorporate the environmental objective in the transportation mode selection problem as transportation is a main contributor to carbon emissions. With this in mind, our paper studies the retailer's ordering and transportation mode selection problem using stochastic customer demand and investigates the optimal ordering and transportation mode selection decisions under different carbon emission reduction policies. Our analytical results reveal that there are some important transportation mode shifting thresholds under different carbon emissions reduction policies. These findings do not only help firms to make optimal decisions under different carbon emission reduction policies but also support policy makers to develop effective policies on carbon emissions reduction.

KW - Cap-and-trade

KW - Carbon emission

KW - Ordering policy

KW - Stochastic demand

KW - Supply chain risk

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Effects of carbon emission reduction policies on transportation mode selections with stochastic demand

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

UN SDGs

Access to Document

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Cite this