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Carbon-constrained firm decisions: From business strategies to operations modeling

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  • Zhou, P.
  • Wen, Wen

Abstract

This paper presents a systematic literature review on carbon-constrained operations models. First, carbon constraints are defined and categorized into three genres: policy-driven, market-driven, and nature-driven. Second, business strategies for fulfilling carbon constraints are summarized and classified into three main groups: internal emissions abatement, collaborative emissions abatement, and carbon compensation. Subsequently, ten specific types of carbon-constrained operations models are studied in support of these business strategies. Lastly, the research trend is analyzed and a conceptual studying framework is proposed. The results show that the policy-driven carbon constraints are the primary carbon considerations in operations models, with the emissions trading scheme and the carbon tax taking first and second place, respectively. In addition, the focus of carbon-constrained operations models evolves from short-term to long-term strategies, from internal to collaborative abatement strategies, and from simple to more practical models. From the carbon constraint modeling perspective, future studies regarding the coexistence of multiple carbon constraints and their interactive effects might have interesting results. From the business strategy perspective, the collaborative emissions abatement models, especially horizontal co-opetition mechanisms, remain to be further explored.

Suggested Citation

  • Zhou, P. & Wen, Wen, 2020. "Carbon-constrained firm decisions: From business strategies to operations modeling," European Journal of Operational Research, Elsevier, vol. 281(1), pages 1-15.
    • Handle: RePEc:eee:ejores:v:281:y:2020:i:1:p:1-15
    DOI: 10.1016/j.ejor.2019.02.050
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    Cited by:

    1. Mukunda Choudhury & Sujit Kumar De & Gour Chandra Mahata, 2023. "A pollution-sensitive multistage production-inventory model for deteriorating items considering expiration date under Stackelberg game approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 11847-11884, October.
    2. Matthew P. Johnson & Theresa S. Rötzel & Brigitte Frank, 2023. "Beyond conventional corporate responses to climate change towards deep decarbonization: a systematic literature review," Management Review Quarterly, Springer, vol. 73(2), pages 921-954, June.
    3. Liang Shen & Fei Lin & T. C. E. Cheng, 2022. "Low-Carbon Transition Models of High Carbon Supply Chains under the Mixed Carbon Cap-and-Trade and Carbon Tax Policy in the Carbon Neutrality Era," IJERPH, MDPI, vol. 19(18), pages 1-21, September.
    4. Thayla Zomer & Paulo Savaget, 2023. "Disentangling Decarbonisation Ambidexterity: An Analysis of European Companies," Sustainability, MDPI, vol. 15(13), pages 1-17, July.
    5. Peng, Weicai & Lu, Shibao & Lu, Wenjing, 2022. "Green financing for the establishment of renewable resources under carbon emission regulation," Renewable Energy, Elsevier, vol. 199(C), pages 1210-1225.
    6. Sim, Jeongeun & Kim, Bowon, 2021. "Regulatory versus consumer pressure and retailer responsibility for upstream pollution in a supply chain," Omega, Elsevier, vol. 101(C).
    7. Xue, Yan & Tang, Chang & Wu, Haitao & Liu, Jianmin & Hao, Yu, 2022. "The emerging driving force of energy consumption in China: Does digital economy development matter?," Energy Policy, Elsevier, vol. 165(C).
    8. Tianlin Zhai & Linke Wu & Yuanmeng Chen & Mian Faisal Nazir & Mingyuan Chang & Yuanbo Ma & Enxiang Cai & Guanyu Ding & Chenchen Zhao & Ling Li & Longyang Huang, 2022. "Ecological Compensation in the Context of Carbon Neutrality: A Case Involving Service Production-Transmission and Distribution-Service Consumption," Land, MDPI, vol. 11(12), pages 1-18, December.
    9. Shuran Wen & Wei Cui & Guiying Wei, 2022. "The Impact of the Low-Carbon Energy Concept and Green Transition on Corporate Behaviour—A Perspective Based on a Contagion Model," Sustainability, MDPI, vol. 14(24), pages 1-16, December.
    10. Nathalia Wolf & Pablo Escalona & Mónica López-Campos & Alejandro Angulo & Jorge Weston, 2023. "On Carbon Tax Effectiveness in Inducing a Clean Technology Transition: An Evaluation Based on Optimal Strategic Capacity Planning," Sustainability, MDPI, vol. 15(15), pages 1-23, July.
    11. Kai Cao & Yanlan Mei, 2022. "Green Supply Chain Decision and Management under Manufacturer’s Fairness Concern and Risk Aversion," Sustainability, MDPI, vol. 14(23), pages 1-22, November.
    12. Li, Wei & Wang, Peilin & Cheng, Wencheng & Nie, Kai, 2024. "Transnational remanufacturing decisions under carbon taxes and tariffs," European Journal of Operational Research, Elsevier, vol. 312(1), pages 150-163.
    13. Zhou, Xiaoyang & Wei, Xiaoya & Lin, Jun & Tian, Xin & Lev, Benjamin & Wang, Shouyang, 2021. "Supply chain management under carbon taxes: A review and bibliometric analysis," Omega, Elsevier, vol. 98(C).
    14. Yuan Yuan & Feng Cai & Lingling Yang, 2020. "Renewable Energy Investment under Carbon Emission Regulations," Sustainability, MDPI, vol. 12(17), pages 1-15, August.
    15. Yang, Yuxiang & Goodarzi, Shadi & Bozorgi, Ali & Fahimnia, Behnam, 2021. "Carbon cap-and-trade schemes in closed-loop supply chains: Why firms do not comply?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).
    16. Feng, Hairong & Zeng, Yinlian & Cai, Xiaoqiang & Qian, Qian & Zhou, Yongwu, 2021. "Altruistic profit allocation rules for joint replenishment with carbon cap-and-trade policy," European Journal of Operational Research, Elsevier, vol. 290(3), pages 956-967.
    17. Yinping Mu & Juan Zhao, 2023. "Production Strategy and Technology Innovation under Different Carbon Emission Polices," Sustainability, MDPI, vol. 15(12), pages 1-17, June.
    18. Lin, Xiaogang & Chen, Danna & Zhou, Yong-Wu & Lin, Qiang, 2022. "Horizontal mergers in low carbon manufacturing," European Journal of Operational Research, Elsevier, vol. 297(1), pages 359-368.
    19. Wu, F. & Wang, S.Y. & Zhou, P., 2023. "Marginal abatement cost of carbon dioxide emissions: The role of abatement options," European Journal of Operational Research, Elsevier, vol. 310(2), pages 891-901.
    20. Liu, Baolong & Papier, Felix, 2022. "Remanufacturing of multi-component systems with product substitution," European Journal of Operational Research, Elsevier, vol. 301(3), pages 896-911.
    21. Chenglin Hu & Junsong Bian & Kin-Keung Lai, 2023. "Joint Optimal Production Planning in Supply Chains under Diverse Low-Carbon Policies," Mathematics, MDPI, vol. 11(15), pages 1-22, August.
    22. Shi, Xiutian & Chan, Hau-Ling & Dong, Ciwei, 2020. "Impacts of competition between buying firms on corporate social responsibility efforts: Does competition do more harm than good?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    23. Fan, Di & Lo, Chris K.Y. & Zhou, Yi, 2021. "Sustainability risk in supply bases: The role of complexity and coupling," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    24. Fu, Ke & Li, Yanzhi & Mao, Huiqiang & Miao, Zhaowei, 2023. "Firms’ production and green technology strategies: The role of emission asymmetry and carbon taxes," European Journal of Operational Research, Elsevier, vol. 305(3), pages 1100-1112.

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