Effects of carbon emission reduction policies on transportation mode selections with stochastic demand

Xu Chen, Xiaojun Wang

Research output: Contribution to journalArticle (Academic Journal)peer-review

67 Citations (Scopus)
351 Downloads (Pure)

Abstract

We are witnessing more frequent extreme weather events due to the global warming. There is an urgent need for governments, industries, general public, and academics to take coordinated actions in order to tackle the challenges imposed by the climate change. It is essential to incorporate the environmental objective in the transportation mode selection problem as transportation is a main contributor to carbon emissions. With this in mind, our paper studies the retailer’s ordering and transportation mode selection problem using stochastic customer demand and investigates the optimal ordering and transportation mode selection decisions under different carbon emission reduction policies. Our analytical results reveal that there are some important transportation mode shifting thresholds under different carbon emissions reduction policies. These findings do not only help firms to make optimal decisions under different carbon emission reduction policies but also support policy makers to develop effective policies on carbon emissions reduction.
Original languageEnglish
Pages (from-to)196-205
Number of pages10
JournalTransportation Research Part E: Logistics and Transportation Review
Volume90
Early online date12 Dec 2015
DOIs
Publication statusPublished - Jun 2016

Structured keywords

  • Smart Networks for Sustainable Futures

Keywords

  • Carbon emission
  • Transportation mode selection
  • Cap-and-trade
  • Supply chain risk
  • Ordering policy
  • Stochastic demand

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