Shipping or local production? CO2 impact of a strategic decision: An automotive industry case study
For Asian manufacturers the trade-off between shipping from domestic plants and investing in transplant facilities is of particular importance. Korean vehicles indirectly account for significant amounts of greenhouse gases as they travel. Here, an established transport cost model is adapted to track CO2 emissions along the built-up vehicle supply chain from the final assembly plant to a local distribution location, taking the cases of Hyundai and Kia, such that initial estimates of the environmental impact of both the Korea–US and the Korea–Europe automotive supply chains may be made. It is found that in both cases the local option, even using road-based distribution, leads to significantly lower emissions than seaborne sourcing direct from South Korea.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hahn, Chan K. & Duplaga, Edward A. & Kim, Kee Young, 1994. "Production/sales interface: MPS at Hyundai motor," International Journal of Production Economics, Elsevier, vol. 37(1), pages 5-17, November.
When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:140:y:2012:i:1:p:138-148. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.