Promoting green supply chain under carbon tax, carbon cap and carbon trading policies

Abstract

Abstract This article examines a supply chain network that considers both economic and environmental factors. The network faces challenges related to multi‐item products and non‐homogenous vehicle types with different costs. Additionally, the production process involves multiple energy sources that emit different levels of air pollution. The main objective is to maximise profits while adhering to different carbon policies. To achieve this goal, the paper presents several supply chain models that are compared under different schemes: no carbon policy (basic one), carbon tax policy, carbon emission policy and carbon trading policy. These models were coded and solved to demonstrate their effectiveness for different conditions and scenarios. The results provide valuable insights for supply chain managers, enabling them to make well‐established decisions for executive planning.