IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v217y2019icp232-245.html
   My bibliography  Save this article

Fair sharing and eco-efficiency in green responsibility and green marketing policy

Author

Listed:
  • Chen, Yenming J.
  • Chen, Tsung-Hui

Abstract

Recent regulations often mandate the recycling of scrap products, especially electrical wastes. This study demonstrates how this end-of-pipe enforcement can be converted to an effective policy tool in improving product design towards green product. We show that collective recycling can enhance producer responsibility whilst being affordable for coalition participants by adopting the proposed two-part allocation scheme, which is a particular solution of the underlying cooperative game and is closer to the nucleolus than the Owen set. Practically, our scheme is easier to implement than other core solutions. This scheme can establish institutional trust and promote environmental quality for companies participating in a recycling coalition. The goal of promoting green market is achieved through the implicit cooperation of participating companies.

Suggested Citation

  • Chen, Yenming J. & Chen, Tsung-Hui, 2019. "Fair sharing and eco-efficiency in green responsibility and green marketing policy," International Journal of Production Economics, Elsevier, vol. 217(C), pages 232-245.
    • Handle: RePEc:eee:proeco:v:217:y:2019:i:c:p:232-245
    DOI: 10.1016/j.ijpe.2018.09.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527318303736
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2018.09.003?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. Groves, Theodore & Ledyard, John O, 1977. "Optimal Allocation of Public Goods: A Solution to the "Free Rider" Problem," Econometrica, Econometric Society, vol. 45(4), pages 783-809, May.
    2. Jiawei Zhang, 2009. "Cost Allocation for Joint Replenishment Models," Operations Research, INFORMS, vol. 57(1), pages 146-156, February.
    3. Ouardighi, Fouad El & Sim, Jeong Eun & Kim, Bowon, 2016. "Pollution accumulation and abatement policy in a supply chain," European Journal of Operational Research, Elsevier, vol. 248(3), pages 982-996.
    4. Chen, Yenming J. & Sheu, Jiuh-Biing, 2009. "Environmental-regulation pricing strategies for green supply chain management," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(5), pages 667-677, September.
    5. Jean-Luc Migue & Richard Marceau, 1993. "Pollution Taxes, Subsidies, and Rent Seeking," Canadian Journal of Economics, Canadian Economics Association, vol. 26(2), pages 355-365, May.
    6. Chialin Chen, 2001. "Design for the Environment: A Quality-Based Model for Green Product Development," Management Science, INFORMS, vol. 47(2), pages 250-263, February.
    7. Xin Chen & Jiawei Zhang, 2009. "A Stochastic Programming Duality Approach to Inventory Centralization Games," Operations Research, INFORMS, vol. 57(4), pages 840-851, August.
    8. Bai, Qingguo & Chen, Mingyuan & Xu, Lei, 2017. "Revenue and promotional cost-sharing contract versus two-part tariff contract in coordinating sustainable supply chain systems with deteriorating items," International Journal of Production Economics, Elsevier, vol. 187(C), pages 85-101.
    9. Karthik Panchanathan & Robert Boyd, 2004. "Indirect reciprocity can stabilize cooperation without the second-order free rider problem," Nature, Nature, vol. 432(7016), pages 499-502, November.
    10. Hart, Sergiu, 1977. "Values of non-differentiable markets with a continuum of traders," Journal of Mathematical Economics, Elsevier, vol. 4(2), pages 103-116, August.
    11. Wong, Christina W.Y. & Lai, Kee-hung & Shang, Kuo-Chung & Lu, Chin-Shan & Leung, T.K.P., 2012. "Green operations and the moderating role of environmental management capability of suppliers on manufacturing firm performance," International Journal of Production Economics, Elsevier, vol. 140(1), pages 283-294.
    12. Akerlof, George A & Yellen, Janet L, 1988. "Fairness and Unemployment," American Economic Review, American Economic Association, vol. 78(2), pages 44-49, May.
    13. repec:bla:jregsc:v:44:y:2004:i:3:p:489-515:2 is not listed on IDEAS
    14. Eichner, Thomas & Pethig, Rudiger, 2001. "Product Design and Efficient Management of Recycling and Waste Treatment," Journal of Environmental Economics and Management, Elsevier, vol. 41(1), pages 109-134, January.
    15. Zhu, Qingyun & Sarkis, Joseph, 2016. "Green marketing and consumerism as social change in China: Analyzing the literature," International Journal of Production Economics, Elsevier, vol. 181(PB), pages 289-302.
    16. Ravi Anupindi & Yehuda Bassok & Eitan Zemel, 2001. "A General Framework for the Study of Decentralized Distribution Systems," Manufacturing & Service Operations Management, INFORMS, vol. 3(4), pages 349-368, February.
    17. Korok Ray & Maris Goldmanis, 2012. "Efficient Cost Allocation," Management Science, INFORMS, vol. 58(7), pages 1341-1356, July.
    18. Bezalel Peleg & Peter Sudhölter, 2007. "Introduction to the Theory of Cooperative Games," Theory and Decision Library C, Springer, edition 0, number 978-3-540-72945-7, July.
    19. Tony Haitao Cui & Jagmohan S. Raju & Z. John Zhang, 2007. "Fairness and Channel Coordination," Management Science, INFORMS, vol. 53(8), pages 1303-1314, August.
    20. Flam, S. D. & Jourani, A., 2003. "Strategic behavior and partial cost sharing," Games and Economic Behavior, Elsevier, vol. 43(1), pages 44-56, April.
    21. Wu, Tienhua & Jim Wu, Yen-Chun & Chen, Yenming J. & Goh, Mark, 2014. "Aligning supply chain strategy with corporate environmental strategy: A contingency approach," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 220-229.
    22. Xing Hu & René Caldentey & Gustavo Vulcano, 2013. "Revenue Sharing in Airline Alliances," Management Science, INFORMS, vol. 59(5), pages 1177-1195, May.
    23. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680, Decembrie.
    24. Eskeland, Gunnar S. & Harrison, Ann E., 2003. "Moving to greener pastures? Multinationals and the pollution haven hypothesis," Journal of Development Economics, Elsevier, vol. 70(1), pages 1-23, February.
    25. Paiva, Ely Laureano, 2010. "Manufacturing and marketing integration from a cumulative capabilities perspective," International Journal of Production Economics, Elsevier, vol. 126(2), pages 379-386, August.
    26. Walls, Margaret, 2003. "The Role of Economics in Extended Producer Responsibility: Making Policy Choices and Setting Policy Goals," RFF Working Paper Series dp-03-11, Resources for the Future.
    27. El Ouardighi, Fouad, 2014. "Supply quality management with optimal wholesale price and revenue sharing contracts: A two-stage game approach," International Journal of Production Economics, Elsevier, vol. 156(C), pages 260-268.
    28. Calcott, Paul & Walls, Margaret, 2005. "Waste, recycling, and "Design for Environment": Roles for markets and policy instruments," Resource and Energy Economics, Elsevier, vol. 27(4), pages 287-305, November.
    29. Eunkyu Lee & Richard Staelin, 1997. "Vertical Strategic Interaction: Implications for Channel Pricing Strategy," Marketing Science, INFORMS, vol. 16(3), pages 185-207.
    30. Mohebbi, Shima & Li, Xueping, 2015. "Coalitional game theory approach to modeling suppliers' collaboration in supply networks," International Journal of Production Economics, Elsevier, vol. 169(C), pages 333-342.
    31. Maiti, T. & Giri, B.C., 2017. "Two-way product recovery in a closed-loop supply chain with variable markup under price and quality dependent demand," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 259-272.
    32. Abdullah Dasci & Gilbert Laporte, 2004. "Location and Pricing Decisions of a MultiStore Monopoly in a Spatial Market," Journal of Regional Science, Wiley Blackwell, vol. 44(3), pages 489-515, August.
    33. Kunce, Mitch & Shogren, Jason F., 2005. "On interjurisdictional competition and environmental federalism," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 212-224, July.
    34. repec:bla:jregsc:v:44:y:2004:i:3:p:489-515:1 is not listed on IDEAS
    35. Zuidwijk, Rob & Krikke, Harold, 2008. "Strategic response to EEE returns:: Product eco-design or new recovery processes?," European Journal of Operational Research, Elsevier, vol. 191(3), pages 1206-1222, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Taati, Roza & Ebrahimi, Abdolhamid & Saeednia, Hamidreza & Alipourdarvishi, Zahra & Taleghani, Mohammad, 2023. "Present and Test the Corporate Social Responsibility Model in the Field of Green Marketing with Emphasis on Brand Affiliation from the Perspective of Organic Products' Consumers," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 12(4), March.
    2. Neringa Vilkaite-Vaitone & Ilona Skackauskiene & Gonzalo Díaz-Meneses, 2022. "Measuring Green Marketing: Scale Development and Validation," Energies, MDPI, vol. 15(3), pages 1-17, January.

    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. Ouardighi, Fouad El & Sim, Jeong Eun & Kim, Bowon, 2016. "Pollution accumulation and abatement policy in a supply chain," European Journal of Operational Research, Elsevier, vol. 248(3), pages 982-996.
    2. Xigang Yuan & Wenwen Sheng & Min Wang & Dalin Zhang, 2023. "Logistics Service Selection Strategy of Green Manufacturers in Green Low-Carbon Supply Chain," IJERPH, MDPI, vol. 20(4), pages 1-17, February.
    3. Gunasekaran, Angappa & Spalanzani, Alain, 2012. "Sustainability of manufacturing and services: Investigations for research and applications," International Journal of Production Economics, Elsevier, vol. 140(1), pages 35-47.
    4. M Dror & B C Hartman, 2011. "Survey of cooperative inventory games and extensions," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(4), pages 565-580, April.
    5. 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.
    6. Tian, Guoqiang, 2009. "Implementation of Pareto efficient allocations," Journal of Mathematical Economics, Elsevier, vol. 45(1-2), pages 113-123, January.
    7. Linghong Zhang & Bowen Xue & Xiyu Liu, 2018. "Carbon Emission Reduction with Regard to Retailer’s Fairness Concern and Subsidies," Sustainability, MDPI, vol. 10(4), pages 1-28, April.
    8. Mukherjee, Arka & Carvalho, Margarida, 2021. "Dynamic decision making in a mixed market under cooperation: Towards sustainability," International Journal of Production Economics, Elsevier, vol. 241(C).
    9. Asuncion Arner Guerre, 2022. "The Extended Producer Responsibility for Waste Oils," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 210-217, March.
    10. Ichiro Nishizaki & Tomohiro Hayashida & Shinya Sekizaki & Kojiro Furumi, 2023. "A two-stage linear production planning model with partial cooperation under stochastic demands," Annals of Operations Research, Springer, vol. 320(1), pages 293-324, January.
    11. Lin, Jinchai & Fan, Ruguo & Tan, Xianchun & Zhu, Kaiwei, 2021. "Dynamic decision and coordination in a low-carbon supply chain considering the retailer's social preference," Socio-Economic Planning Sciences, Elsevier, vol. 77(C).
    12. Luyi Gui & Atalay Atasu & Özlem Ergun & L. Beril Toktay, 2016. "Efficient Implementation of Collective Extended Producer Responsibility Legislation," Management Science, INFORMS, vol. 62(4), pages 1098-1123, April.
    13. Bowon Kim & Jeong Eun Sim, 2016. "Supply Chain Coordination and Consumer Awareness for Pollution Reduction," Sustainability, MDPI, vol. 8(4), pages 1-20, April.
    14. Kunter, Marcus, 2012. "Coordination via cost and revenue sharing in manufacturer–retailer channels," European Journal of Operational Research, Elsevier, vol. 216(2), pages 477-486.
    15. Wensi Zhang & Jing Xiao & Lingfei Cai, 2020. "Joint Emission Reduction Strategy in Green Supply Chain under Environmental Regulation," Sustainability, MDPI, vol. 12(8), pages 1-24, April.
    16. Juanjuan Qin & Kun Wang & Ziping Wang & Liangjie Xia, 2020. "Revenue sharing contracts for horizontal capacity sharing under competition," Annals of Operations Research, Springer, vol. 291(1), pages 731-760, August.
    17. Xin Geng & Harish Krishnan & Milind G. Sohoni, 2022. "Operational collaboration between rivals: The impact of cost reduction," Production and Operations Management, Production and Operations Management Society, vol. 31(4), pages 1856-1871, April.
    18. Xin Chen & Jiawei Zhang, 2009. "A Stochastic Programming Duality Approach to Inventory Centralization Games," Operations Research, INFORMS, vol. 57(4), pages 840-851, August.
    19. Nelson Oliveira Stefanelli & Charbel José Chiappetta Jabbour & Lara Bartocci Liboni Amui & Jorge Henrique Caldeira de Oliveira & Hengky Latan & Pascal Paillé & Martin Hingley, 2021. "Unleashing proactive low‐carbon strategies through behavioral factors in biodiversity‐intensive sustainable supply chains: Mixed methodology," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2535-2555, July.
    20. Xu, Xiaoyan & Choi, Tsan-Ming & Chung, Sai-Ho & Guo, Shu, 2023. "Collaborative-commerce in supply chains: A review and classification of analytical models," International Journal of Production Economics, Elsevier, vol. 263(C).

    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:eee:proeco:v:217:y:2019:i:c:p:232-245. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    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.