Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/325173 
Year of Publication: 
2022
Citation: 
[Journal:] EURO Journal on Transportation and Logistics (EJTL) [ISSN:] 2192-4384 [Volume:] 11 [Issue:] 1 [Article No.:] 100061 [Year:] 2022 [Pages:] 1-13
Publisher: 
Elsevier, Amsterdam
Abstract: 
Current environmental issues that have been made unavoidable by environmental regulations have become new constraints for industrial companies. In this paper, we consider a joint production-location problem for supply chains under a carbon tax policy on transport-related carbon emissions. We characterize the relationship that links the production level to the input quantities by considering a production function, namely, constant elasticity of substitution (CES) function. Our study focuses on the potential impact of increased transportation costs due to carbon taxation on the joint production-location decision. We find that the location-production configuration differs according to the degree of substitutability among the raw material quantities. More importantly, we observe that a higher carbon tax is more likely to cause a significant jump in firm location choice and a considerable change in production decisions when a firm has high flexibility in its ability to substitute among input quantities.
Subjects: 
Facility location
Raw material substitution
Environmental issues
Carbon tax
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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