IDEAS home Printed from https://ideas.repec.org/a/spr/operea/v23y2023i3d10.1007_s12351-023-00793-7.html
   My bibliography  Save this article

Energy conservation strategy and coordination of a closed-loop supply chain with risk-averse members under carbon tax regulation

Author

Listed:
  • Jianteng Xu

    (Qufu Normal University)

  • Qingguo Bai

    (Qufu Normal University)

  • Qian Luo

    (Xi’an Jiaotong Liverpool University)

Abstract

This paper considers a closed-loop supply chain including a risk-averse manufacturer and a risk-averse retailer under carbon tax regulation, where the manufacturer takes back used products collected from customers by the retailer. The stochastic demand for the product is linearly dependent on the sales price and level of energy saving equipment. Under the mean-variance framework, two manufacturer-led decentralized systems are modeled and compared to reveal whether the risk-averse manufacturer should invest in energy saving equipment. A two-part tariff contract is then proposed to coordinate the decentralized system with equipment investment. The conditions of realizing a win-win outcome for the system agents are further derived. The developed models are illustrated by numerical examples, and a sensitivity analysis is conducted to identify the effects of major parameters on optimal decisions of the closed-loop supply chain. Some managerial implications are also discussed.

Suggested Citation

  • Jianteng Xu & Qingguo Bai & Qian Luo, 2023. "Energy conservation strategy and coordination of a closed-loop supply chain with risk-averse members under carbon tax regulation," Operational Research, Springer, vol. 23(3), pages 1-39, September.
    • Handle: RePEc:spr:operea:v:23:y:2023:i:3:d:10.1007_s12351-023-00793-7
    DOI: 10.1007/s12351-023-00793-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12351-023-00793-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12351-023-00793-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gérard P. Cachon & A. Gürhan Kök, 2010. "Competing Manufacturers in a Retail Supply Chain: On Contractual Form and Coordination," Management Science, INFORMS, vol. 56(3), pages 571-589, March.
    2. Chiu, Chun-Hung & Choi, Tsan-Ming & Hao, Gang & Li, Xun, 2015. "Innovative menu of contracts for coordinating a supply chain with multiple mean-variance retailers," European Journal of Operational Research, Elsevier, vol. 246(3), pages 815-826.
    3. Wu, Xiaole & Zhou, Yu, 2017. "The optimal reverse channel choice under supply chain competition," European Journal of Operational Research, Elsevier, vol. 259(1), pages 63-66.
    4. Bazan, Ehab & Jaber, Mohamad Y. & Zanoni, Simone, 2017. "Carbon emissions and energy effects on a two-level manufacturer-retailer closed-loop supply chain model with remanufacturing subject to different coordination mechanisms," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 394-408.
    5. Chun-Hung Chiu & Tsan-Ming Choi, 2016. "Supply chain risk analysis with mean-variance models: a technical review," Annals of Operations Research, Springer, vol. 240(2), pages 489-507, May.
    6. Qingguo Bai & Jianteng Xu & Yuzhong Zhang, 2022. "The distributionally robust optimization model for a remanufacturing system under cap-and-trade policy: a newsvendor approach," Annals of Operations Research, Springer, vol. 309(2), pages 731-760, February.
    7. Lan Wang & Gangshu (George) Cai & Andy A. Tsay & Asoo J. Vakharia, 2017. "Design of the Reverse Channel for Remanufacturing: Must Profit-Maximization Harm the Environment?," Production and Operations Management, Production and Operations Management Society, vol. 26(8), pages 1585-1603, August.
    8. Nikunja Mohan Modak & Peter Kelle, 2021. "Using social work donation as a tool of corporate social responsibility in a closed-loop supply chain considering carbon emissions tax and demand uncertainty," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 72(1), pages 61-77, January.
    9. Lai, Xiaofan & Tao, Yi & Wang, Fan & Zou, Zongbao, 2019. "Sustainability investment in maritime supply chain with risk behavior and information sharing," International Journal of Production Economics, Elsevier, vol. 218(C), pages 16-29.
    10. Chai, Qiangfei & Xiao, Zhongdong & Lai, Kee-hung & Zhou, Guanghui, 2018. "Can carbon cap and trade mechanism be beneficial for remanufacturing?," International Journal of Production Economics, Elsevier, vol. 203(C), pages 311-321.
    11. Choi, Tsan-Ming & Chung, Sai-Ho & Zhuo, Xiaopo, 2020. "Pricing with risk sensitive competing container shipping lines: Will risk seeking do more good than harm?," Transportation Research Part B: Methodological, Elsevier, vol. 133(C), pages 210-229.
    12. Modak, Nikunja Mohan & Kazemi, Nima & Cárdenas-Barrón, Leopoldo Eduardo, 2019. "Investigating structure of a two-echelon closed-loop supply chain using social work donation as a Corporate Social Responsibility practice," International Journal of Production Economics, Elsevier, vol. 207(C), pages 19-33.
    13. Zhuo, Wenyan & Shao, Lusheng & Yang, Honglin, 2018. "Mean–variance analysis of option contracts in a two-echelon supply chain," European Journal of Operational Research, Elsevier, vol. 271(2), pages 535-547.
    14. Choi, Tsan-Ming & Chiu, Chun-Hung, 2012. "Mean-downside-risk and mean-variance newsvendor models: Implications for sustainable fashion retailing," International Journal of Production Economics, Elsevier, vol. 135(2), pages 552-560.
    15. Yingxue Zhao & Tsan-Ming Choi & T. C. E. Cheng & Shouyang Wang, 2017. "Mean-risk analysis of wholesale price contracts with stochastic price-dependent demand," Annals of Operations Research, Springer, vol. 257(1), pages 491-518, October.
    16. B. C. Giri & M. Masanta, 2022. "A closed-loop supply chain model with uncertain return and learning-forgetting effect in production under consignment stock policy," Operational Research, Springer, vol. 22(2), pages 947-975, April.
    17. Liu, Mengqi & Cao, Erbao & Salifou, Coulibaly Kigbajah, 2016. "Pricing strategies of a dual-channel supply chain with risk aversion," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 108-120.
    18. R. Canan Savaskan & Shantanu Bhattacharya & Luk N. Van Wassenhove, 2004. "Closed-Loop Supply Chain Models with Product Remanufacturing," Management Science, INFORMS, vol. 50(2), pages 239-252, February.
    19. Juzhi Zhang & Suresh P. Sethi & Tsan‐Ming Choi & T. C. E. Cheng, 2020. "Supply Chains Involving a Mean‐Variance‐Skewness‐Kurtosis Newsvendor: Analysis and Coordination," Production and Operations Management, Production and Operations Management Society, vol. 29(6), pages 1397-1430, June.
    20. Choi, Tsan-Ming & Li, Duan & Yan, Houmin, 2008. "Mean-variance analysis of a single supplier and retailer supply chain under a returns policy," European Journal of Operational Research, Elsevier, vol. 184(1), pages 356-376, January.
    21. Chen, Cheng-Kang & Ulya, M. Akmalul ', 2019. "Analyses of the reward-penalty mechanism in green closed-loop supply chains with product remanufacturing," International Journal of Production Economics, Elsevier, vol. 210(C), pages 211-223.
    22. Bin Shen & Xiaoyan Xu & Tsan-Ming Choi, 2019. "Simplicity is beauty: pricing coordination in two-product supply chains with simplest contracts under voluntary compliance," International Journal of Production Research, Taylor & Francis Journals, vol. 57(9), pages 2769-2787, May.
    23. Yang, Lei & Hu, Yijuan & Huang, Lijuan, 2020. "Collecting mode selection in a remanufacturing supply chain under cap-and-trade regulation," European Journal of Operational Research, Elsevier, vol. 287(2), pages 480-496.
    24. Chirantan Mondal & Bibhas C. Giri, 2022. "Retailers’ competition and cooperation in a closed-loop green supply chain under governmental intervention and cap-and-trade policy," Operational Research, Springer, vol. 22(2), pages 859-894, April.
    25. Ciwei Dong & Bin Shen & Pui-Sze Chow & Liu Yang & Chi To Ng, 2016. "Sustainability investment under cap-and-trade regulation," Annals of Operations Research, Springer, vol. 240(2), pages 509-531, May.
    26. Niu, Baozhuang & Chu, Lap-Keung & Ni, Jian & Wang, Junwei, 2018. "Buy now and price later: Supply contracts with time-consistent mean–variance financial hedgingAuthor-Name: Li, Qiang," European Journal of Operational Research, Elsevier, vol. 268(2), pages 582-595.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Indranil Biswas & Arnab Adhikari & Baidyanath Biswas, 2020. "Channel coordination of a risk-averse supply chain: a mean–variance approach," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(4), pages 415-429, December.
    2. Choi, Tsan-Ming & Wen, Xin & Sun, Xuting & Chung, Sai-Ho, 2019. "The mean-variance approach for global supply chain risk analysis with air logistics in the blockchain technology era," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 127(C), pages 178-191.
    3. Choi, Tsan-Ming & Zhang, Ting, 2023. "Will being an angel bring more harm than good? Altruistic newsvendors with different risk attitudes," European Journal of Operational Research, Elsevier, vol. 305(3), pages 1153-1165.
    4. Raza, Syed Asif & Govindaluri, Srikrishna Madhumohan, 2019. "Pricing strategies in a dual-channel green supply chain with cannibalization and risk aversion," Operations Research Perspectives, Elsevier, vol. 6(C).
    5. Zheng, Xiao-Xue & Li, Deng-Feng & Liu, Zhi & Jia, Fu & Lev, Benjamin, 2021. "Willingness-to-cede behaviour in sustainable supply chain coordination," International Journal of Production Economics, Elsevier, vol. 240(C).
    6. Dexiang Yang & Qin Yang & Lei Zhang, 2023. "Operational Decisions on Remanufacturing under the Product Innovation Race," Sustainability, MDPI, vol. 15(6), pages 1-18, March.
    7. Zhou, Yongyi & Zhang, Yulin & Wahab, M.I.M. & Goh, Mark, 2023. "Channel leadership and performance for a closed-loop supply chain considering competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    8. Hongxia Sun & Jie Yang & Yang Zhong, 2020. "Optimal Decisions for Two Risk-Averse Competitive Manufacturers under the Cap-and-Trade Policy and Uncertain Demand," IJERPH, MDPI, vol. 17(3), pages 1-17, February.
    9. Bin Chen & Wenying Xie & Fuyou Huang & Xinyang Li, 2020. "Energy-saving and pricing decisions in a sustainable supply chain considering behavioral concerns," PLOS ONE, Public Library of Science, vol. 15(8), pages 1-20, August.
    10. Zhuo, Wenyan & Shao, Lusheng & Yang, Honglin, 2018. "Mean–variance analysis of option contracts in a two-echelon supply chain," European Journal of Operational Research, Elsevier, vol. 271(2), pages 535-547.
    11. Zhang, Zhichao & Xu, Haiyan & Chen, Kebing & Zhao, Yingxue & Liu, Zhi, 2023. "Channel mode selection for an e-platform supply chain in the presence of a secondary marketplace," European Journal of Operational Research, Elsevier, vol. 305(3), pages 1215-1235.
    12. Avinadav, Tal & Chernonog, Tatyana & Ben-Zvi, Tal, 2019. "The effect of information superiority on a supply chain of virtual products," International Journal of Production Economics, Elsevier, vol. 216(C), pages 384-397.
    13. Yang, Honglin & Zhuo, Wenyan & Shao, Lusheng & Talluri, Srinivas, 2021. "Mean-variance analysis of wholesale price contracts with a capital-constrained retailer: Trade credit financing vs. bank credit financing," European Journal of Operational Research, Elsevier, vol. 294(2), pages 525-542.
    14. Zhang, Abraham & Wang, Jason X. & Farooque, Muhammad & Wang, Yulan & Choi, Tsan-Ming, 2021. "Multi-dimensional circular supply chain management: A comparative review of the state-of-the-art practices and research," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    15. Jie Deng & Xuwei Luo & Mengsi Hu, 2022. "Implications of a Carbon Tax Mechanism in Remanufacturing Outsourcing on Carbon Neutrality," IJERPH, MDPI, vol. 19(9), pages 1-21, May.
    16. Cui, Qinquan & Chiu, Chun-Hung & Dai, Xin & Li, Zhongfei, 2016. "Store brand introduction in a two-echelon logistics system with a risk-averse retailer," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 69-89.
    17. Tong Shu & Qian Liu & Shou Chen & Shouyang Wang & Kin Keung Lai, 2018. "Pricing Decisions of CSR Closed-Loop Supply Chains with Carbon Emission Constraints," Sustainability, MDPI, vol. 10(12), pages 1-25, November.
    18. Zhang, Tianyu & Dong, Peiwu & Chen, Xiangfeng & Gong, Yu, 2023. "The impacts of blockchain adoption on a dual-channel supply chain with risk-averse members," Omega, Elsevier, vol. 114(C).
    19. Shiqi Xu & Hui Liu & Guangye Xu, 2021. "Selection of Recycling Channels and Product Eco-Design with Take-Back Regulation," Sustainability, MDPI, vol. 13(16), pages 1-17, August.
    20. Yuyan Wang & Tingting Yu & Rui Zhou, 2022. "The Impact of Legal Recycling Constraints and Carbon Trading Mechanisms on Decision Making in Closed-Loop Supply Chain," IJERPH, MDPI, vol. 19(12), pages 1-26, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:operea:v:23:y:2023:i:3:d:10.1007_s12351-023-00793-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.