Low carbon warehouse management under cap-and-trade policy

Green warehouse management plays a significant part in developing a carbon efficient supply chain. This research examines the behaviour change in warehouse management decisions under the cap-and-trade emission policy and explores the role of green technology investment in managing the trade-offs between the economic and environment performances of warehousing operations. This study analyses the optimal decisions in warehouse management and technology investment under the cap-and-trade emissions policy to assist the practitioners in making efficient decisions. Moreover, this study also investigates the effect of initial carbon emission allowance and transaction costs of the unit carbon emission trading with the outside market, on the economic and environment performances of warehousing operations. The findings of this study provide useful insights in greening the warehousing operations and reducing the carbon emissions.