The effect of investment in green technology in a two echelon supply chain under strict carbon-cap policy

Optimization of a two-echelon supply chain with random demand and random defect rate under strict carbon cap policy

Purpose

The yield of defective items and emissions of greenhouse gases in supply chains are areas of concern. Organizations try to reduce the yield defective items and emissions. In this paper, a constrained optimization model is developed with consideration of the yield of defective items and strict carbon cap policy simultaneously and then optimized. Further, sensitivity analyses have been carried out to draw different managerial insights. Precisely, we have tried to address the following research questions: (1) how to optimize the cost for a two-echelon supply chain considering yield of defective items and strict carbon cap policy, (2) how the total expected cost and total expected emissions act with changing parameters.

Design/methodology/approach

The mathematical modeling approach has been adopted to develop a model and further optimized it with optimization software. Costs and emissions from different areas of a supply chain have been derived and then the total cost and total emissions have been formulated mathematically. One constrained mixed-integer nonlinear programming (MINLP) problem has been formulated and solved considering emissions-related, velocity and production related-constraints. Further, different sensitivity analyses have been derived to draw some managerial insights.

Findings

In this paper, many decision variables have been calculated with a set of basic values of other parameters. It has been found that both cost and emissions can be controlled by controlling different parameters. It has been also found that some parameters have very little or no influence either on cost or emissions. In most cases, originations may exhaust the given limit of carbon cap to optimize their costs.

Originality/value

In spite of my sincere efforts, no paper has been found that has considered the yield of defective items and strict carbon cap policy simultaneously. In this paper, it is assumed that both demand and defect rates are random in nature. The model, presented in this paper may give insights to develop different supply chain models with consideration of both defective items and strict carbon cap policy. Sensitivity analyses, drawn in this paper may give deep insights to managers and carbon regulatory bodies.

The Drivers of Green Investment: A Bibliometric and Systematic Review

Considering the growing of high alarm signals on environmental issues, the implementation of green, sustainable, responsible investments has become a priority for each organization, in addition to maximizing profits and harmonious development with the environment. The purpose of this study is to examine the importance of implementing green investments within organizations and to identify the drivers that influence decisions for the implementation of green investments. In order to achieve this, two types of analyses were used: bibliometric analysis and systematic analysis, researching the representative studies in the field. The search was carried out for the period 1990–2020, and the analyzed sample comprised 444 articles. Following the application of the two methods of analysis, the results show that in the last 6 years the interest of companies in green investments has increased significantly, organizations being concerned with the efficient use of resources and environmental issues. This research highlights the internal and external drivers over which companies have a higher or lower control, as the case may be, in order to involve in green investments. The article offers new pathways for future research on this matter. Therefore, future research may develop a detailed description of the identified drivers for green investment. In addition, further research can calculate the level of the drivers’ impact on green investment and can identify that certain drivers should be more attentively treated. Moreover, subsequent works in this field can continue to identify new drivers or new ways of promoting the already identified drivers in the present research. Consequently, green investment could produce positive effects related to the reduction of pollution and global warming.

Economic sustainability benchmarking of environmental initiatives: a case of wastewater treatment plant

Purpose

It has been long debated whether the three bottom lines of sustainability (economic, environmental and social) can be achieved simultaneously or whether achieving one adversely affects the others. This paper analyses the economic sustainability of an environmental initiative, namely, effluent treatment plant (ETP), adopted by an Indian textile industry.

Design/methodology/approach

Two situations have been considered for the analysis. First, pure economic view with the operating and installed capacities has been considered. Second, combined economic-environmental view using shadow prices of undesirable outputs (biological oxygen demand, chemical oxygen demand, total nitrogen, total phosphorous, etc.) has been analysed.

Findings

It has been found that when pure economic view is considered, the net present value (NPV) of the ETP with present operating capacity (10,200 kL/day) is negative, implying that it is not economically sustainable. However, if the ETP is operated with the full installed capacity (17,000 kL/day), it becomes economically sustainable except in the case of very high cost of capital (13%). Finally, when shadow prices of undesirable outputs are considered, the NPV becomes positive, bolstering the economic-environmental sustainability of ETP.

Research limitations/implications

In future, multiple case studies should be conducted in similar organisations to extend the general applicability of the outcome of this study. This research considers the economic and environmental aspects of ETP. However, social benefits have not been considered in this research work, which can definitely be addressed in future endeavours.

Practical implications

Though very high capital investment of ETP acts as a barrier, the results of this study imply that the top management of textile and clothing organisations should look at it from the holistic economic-environmental viewpoint. The use of ETP also leads to social benefits by improving the health of local community and by reducing their hospitalisation, medical expenditure and absenteeism from school and workplace. The outcome of this research may enthuse the entrepreneurs to adopt environmental initiatives.

Originality/value

The paper provides a framework to evaluate the economic feasibility of ETP by considering the time value of money. It is demonstrated with a real case that the environmental initiatives can be economically rewarding.

Examining the link among green human resource management practices, green supply chain management practices and performance

Purpose

The increasing concern for the protection of the environment through pollution prevention, conservation of resources and less usage of energy has attracted several firms to align green practices with their supply chain and human resource policies and practices. This study explores the influence of green human resource management and green supply chain management practices on operational, market, financial, social and environmental performances.

Design/methodology/approach

The study uses partial least square–structural equation modeling approach to analyze the data gathered through structured questionnaires from supply chain and human resource managers in manufacturing and hospitality firms in Ghana.

Findings

It is established that green supply chain management practices play complementary partial mediating role between green human resource management and operational, market, social and environmental performances, while it plays competitive partial mediating role between green human resource management and financial performance. Subsequently, the analysis reveals that the synergy between green human resource management and green supply chain management creates the highest value in operational performance, followed by market performance, environmental performance, financial performance and social performance.

Originality/value

The study proposes and tests a conceptual model that examines the synergistic influence of green human resource management and green supply chain management on operational, market, financial, social and environmental performances.