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A multi-round combinatorial double auction for carrier collaboration with carbon emission permits trading in less than truckload transportation

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  • Lyu, Xiaohui
  • Chen, Haoxun
  • Wang, Nengmin
  • Zhang, Xiaohong

Abstract

The road transportation contributes to a large portion of global carbon emissions each year. This carbon emission can be significantly reduced through collaboration among carriers. In this paper, a multi-round combinatorial double auction with both requests exchange and carbon emission permits trading is proposed for carrier collaboration, where each carrier may play a double role as both a seller and a buyer. In each round of the auction, the auctioneer announces the outsourcing price of each request and the unit trading price of emission permits. Each carrier then determines and bids for mutually exclusive request bundles to outsource and insource, along with their maximum and minimum trading volumes of emission permits. After receiving the supply and demand bids, the auctioneer tentatively reassigns requests and reallocates emission permits among carriers. At the end of each round, the outsourcing price of each request and the unit trading price of emission permits are updated based on the bids in previous rounds. Computational study shows that the proposed auction can generate more profits to carriers and reduce total carbon emissions significantly.

Suggested Citation

  • Lyu, Xiaohui & Chen, Haoxun & Wang, Nengmin & Zhang, Xiaohong, 2025. "A multi-round combinatorial double auction for carrier collaboration with carbon emission permits trading in less than truckload transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 200(C).
    • Handle: RePEc:eee:transe:v:200:y:2025:i:c:s1366554525002315
    DOI: 10.1016/j.tre.2025.104190
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    References listed on IDEAS

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