Browsing by Subject "Environmental regulations"

Now showing 1 - 3 of 3

Open Access
How supply chain coordination affects the environment: a carbon footprint perspective
(Springer, 2017) Toptal, A.; Çetinkaya, B.
Environmental responsibility has become an important part of doing business. Government regulations and customers’ increased awareness of environmental issues are pushing supply chain entities to reduce the negative influence of their operations on the environment. In today’s world, companies must assume joint responsibility with their suppliers for the environmental impact of their actions. In this paper, we study coordination between a buyer and a vendor under the existence of two emission regulation policies: cap-and-trade and tax. We investigate the impact of decentralized and centralized replenishment decisions on total carbon emissions. The buyer in this system faces a deterministic and constant demand rate for a single product in the infinite horizon. The vendor produces at a finite rate and makes deliveries to the buyer on a lot-for-lot basis. Both the buyer and the vendor aim to minimize their average annual costs resulting from replenishment set-ups and inventory holding. We provide decentralized and centralized models for the buyer and the vendor to determine their ordering/production lot sizes under each policy. We compare the solutions due to independent and joint decision-making both analytically and numerically. Finally, we arrive at coordination mechanisms for this system to increase its profitability. However, we show that even though such coordination mechanisms help the buyer and the vendor decrease their costs without violating emission regulations, the cost minimizing solution may result in increased carbon emission under certain circumstances.
Open Access
The impact of environmental regulations on exports: case study results from Cyprus, Jordan, Morocco, Syria, Tunisia and Turkey
(Elsevier, 2002) Zaim, K. K.; Larson, B. A.; Nicolaides, E.; Al Zu'bi, B.; Sukkar, N.l; Laraki, K.; Matoussi, M. S.; Chouchani, C.
Concern about the effects of environmental policies on trade competitiveness continues to grow in the non-EU Mediterranean regions (e.g., North Africa, the Middle East, Turkey, Cyprus). While the impact of environmental regulations on exports is widely discussed in the region, there has been little empirical analysis of how more stringent environmental regulations might affect exports of key sectors in the future. This paper summarizes the results of six case studies that estimate the impact of potential changes in environmental regulations on exports from a key sector in each country. These case studies, which are based on a theoretically consistent yet empirically tractable modeling approach, suggest that a range of outcomes is likely and depends on a fairly small set of specific information. For some of the cases, expected regulatory changes would probably have little impact on exports, while in other cases the impacts could be substantially larger. In some countries, the range of potential outcomes is largely due to the magnitude of the policy change, the importance of various inputs in production, and the lack of information on international market conditions. Copyright © 2002 Elsevier Science Ltd. All rights reserved.
Open Access
On the modeling of CO2 EUA and CER prices of EU-ETS for the 2008–2012 period
(John Wiley and Sons, 2016) Gürler, Ü.; Yenigün, D.; Çağlar, M.; Berk, E.
Increased consumption of fossil fuels in industrial production has led to a significant elevation in the emission of greenhouse gases and to global warming. The most effective international action against global warming is the Kyoto Protocol, which aims to reduce carbon emissions to desired levels in a certain time span. Carbon trading is one of the mechanisms used to achieve the desired reductions. One of the most important implications of carbon trading for industrial systems is the risk of uncertainty about the prices of carbon allowance permits traded in the carbon markets. In this paper, we consider stochastic and time series modeling of carbon market prices and provide estimates of the model parameters involved, based on the European Union emissions trading scheme carbon allowances data obtained for 2008–2012 period. In particular, we consider fractional Brownian motion and autoregressive moving average–generalized autoregressive conditional heteroskedastic modeling of the European Union emissions trading scheme data and provide comparisons with benchmark models. Our analysis reveals evidence for structural changes in the underlying models in the span of the years 2008–2012. Data-driven methods for identifying possible change-points in the underlying models are employed, and a detailed analysis is provided. Our analysis indicated change-points in the European Union Allowance (EUA) prices in the first half of 2009 and in the second half of 2011, whereas in the Certified Emissions Reduction (CER) prices three change-points have appeared, in the first half of 2009, the middle of 2011, and in the second half of 2012. These change-points seem to parallel the global economic indicators as well.