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Supply Chain Design and Carbon Penalty: Monopoly vs. Monopolistic Competition

Title
Supply Chain Design and Carbon Penalty: Monopoly vs. Monopolistic Competition
Authors
Park, Seung JaeCachon, Gerard P.Lai, GuomingSeshadri, Sridhar
Ewha Authors
박승재
SCOPUS Author ID
박승재scopus
Issue Date
2015
Journal Title
PRODUCTION AND OPERATIONS MANAGEMENT
ISSN
1059-1478JCR Link

1937-5956JCR Link
Citation
PRODUCTION AND OPERATIONS MANAGEMENT vol. 24, no. 9, pp. 1494 - 1508
Keywords
sustainabilitysupply chain designpolicy makingcarbon taxmonopolistic competition
Publisher
WILEY
Indexed
SCIE; SCOPUS WOS
Document Type
Article
Abstract
This paper studies whether imposing carbon costs changes the supply chain structure and social welfare. We explore the problem from a central policymaker's perspective who wants to maximize social welfare. We consider two stakeholders, retailers, and consumers, who optimize their own objectives (i.e., profits and net utility) and three competitive settings (i.e., monopoly, monopolistic competition with symmetric market share, and monopolistic competition with asymmetric market share). For the monopoly case, we find that when the retailer's profit is high, imposing some carbon emission charges on the retailer and the consumers does not substantially change the supply chain structure or the social welfare. However, when the retailer's profit is low, imposing carbon costs optimally can lead to a significant increase in social welfare. Moreover, the impact of imposing carbon emission charges becomes more significant when the degree of competition increases. Additionally, the quantum of benefit may depend only on factors common across industries, such as fuel and carbon costs.
DOI
10.1111/poms.12373
Appears in Collections:
경영대학 > 경영학전공 > Journal papers
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