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Supply Chain Modelling Under Carbon Trading

Supply Chain Modelling Under Carbon Trading

Nidhi M. B., V. Madhusudanan Pillai
Copyright: © 2019 |Pages: 18
ISBN13: 9781522554240|ISBN10: 1522554246|ISBN13 Softcover: 9781522587729|EISBN13: 9781522554257
DOI: 10.4018/978-1-5225-5424-0.ch016
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MLA

Nidhi M. B., and V. Madhusudanan Pillai. "Supply Chain Modelling Under Carbon Trading." Emerging Applications in Supply Chains for Sustainable Business Development, edited by M. Vijaya Kumar, et al., IGI Global, 2019, pp. 282-299. https://doi.org/10.4018/978-1-5225-5424-0.ch016

APA

Nidhi M. B. & Pillai, V. M. (2019). Supply Chain Modelling Under Carbon Trading. In M. Kumar, G. Putnik, K. Jayakrishna, V. Pillai, & L. Varela (Eds.), Emerging Applications in Supply Chains for Sustainable Business Development (pp. 282-299). IGI Global. https://doi.org/10.4018/978-1-5225-5424-0.ch016

Chicago

Nidhi M. B., and V. Madhusudanan Pillai. "Supply Chain Modelling Under Carbon Trading." In Emerging Applications in Supply Chains for Sustainable Business Development, edited by M. Vijaya Kumar, et al., 282-299. Hershey, PA: IGI Global, 2019. https://doi.org/10.4018/978-1-5225-5424-0.ch016

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Abstract

In the recent decades, carbon footprint assessment of an activity has been emerging as a major research area. The carbon trading called “CAP and TRADE system” is evolved out of the Kyoto Protocol and emission trading schemes and is experimented across countries to encourage organizations to control emission. The region or country fixes the CAP which is the limit for emissions emitted by an organization. This chapter depicts the performance evaluation of a supply chain under the carbon cap and trade scheme. A mathematical model is proposed which considers carbon emissions as a result of supply chain operation, carbon trading among members of the supply chain, and carbon trading with members of outside supply chain. A mixed integer linear programming (MILP) model is proposed for the performance evaluation of a forward supply chain having 4 stages. The analysis shows that carbon trading allows economic benefits as well as environmental benefits.

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