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Implementing The United Nations Sustainable Development Goals to Supply Chains with Behavioral Consumers

Author

Listed:
  • Talat Genc

    (Department of Economics and Finance, University of Guelph, Guelph ON Canada)

Abstract

We identify that the United Nations (UN) Sustainable Development Goals (SDGs) of 7, 9, 12 pertaining to industry investment, innovation, affordability, clean product, and responsible consumption/production are relevant for the firms operating in closed-loop supply chain (CLSC) structures. We show how these goals can be implemented into a CLSC in which downstream manufacturer serves different types of consumers and engages in vertical relations with a supplier in the upstream. While the supplier invests in a green component, the manufacturer produces the final green product. The manufacturer diversifies its customer base and meet their demands through contracts and a variety of pricing options. Specifically, at the end of the supply chain there are three different customer groups: “contract customers”, “green-conscious customers”, and “wholesale market customers”. While the firms execute sustainability Goals of 7 and 9, the behavioral consumers who are the contract and green-conscious customers are altruistic, consume responsibly, and hence fulfill the Goal 12. We show that green consciousness and altruism play an important role on rm profitability and production. Furthermore, the SDGs proposed by the UN have welfare-improving implications. In particular, when the SDGs are implemented, all parties (firms and consumers) are better off compared to the benchmark case under which no SDGs are applied.

Suggested Citation

  • Talat Genc, 2021. "Implementing The United Nations Sustainable Development Goals to Supply Chains with Behavioral Consumers," Working Papers 2102, University of Guelph, Department of Economics and Finance.
  • Handle: RePEc:gue:guelph:2021-02
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    File URL: http://www.uoguelph.ca/economics/repec/workingpapers/2021/2021-02.pdf
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    Citations

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    Cited by:

    1. Luis Francisco López-Castro & Elyn L. Solano-Charris, 2021. "Integrating Resilience and Sustainability Criteria in the Supply Chain Network Design. A Systematic Literature Review," Sustainability, MDPI, vol. 13(19), pages 1-26, September.
    2. Rohit Agrawal & Abhijit Majumdar & Kirty Majumdar & Rakesh D. Raut & Balkrishna E. Narkhede, 2022. "Attaining sustainable development goals (SDGs) through supply chain practices and business strategies: A systematic review with bibliometric and network analyses," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3669-3687, November.
    3. Yan Zhang & Wen Zhang, 2023. "Optimal pricing and greening decisions in a supply chain when considering market segmentation," Annals of Operations Research, Springer, vol. 324(1), pages 93-130, May.
    4. Talat S. Genc & Stephen Kosempel, 2023. "Energy Transition and the Economy: A Review Article," Energies, MDPI, vol. 16(7), pages 1-26, March.
    5. Amna Farrukh & Sanjay Mathrani & Aymen Sajjad, 2023. "An exploratory study of green‐lean‐six sigma motivators for environmental sustainability: Managerial insights from a developed and developing economy," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5187-5210, December.

    More about this item

    Keywords

    Sustainability; Closed-loop supply chain; Endogenous return; Process innovation; Green Consciousness; Responsible consumption; Contracts.;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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