Allocating the cost of the carbon footprint produced along a supply chain, among the stakeholders involved (original) (raw)
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Greenhouse Gas (GHG) emissions are considered to be the main cause of climate change globally. On the one hand, specific targets regarding these emissions have been already adopted in a European level. These targets include 20% reduction of greenhouse gases (GHG) and 20% reduction of energy consumption until 2020, below 1990 levels. Furthermore, EU leaders going one step forward, they have endorsed the objective of reducing Europe's GHG emissions by 80-95% compared to 1990 levels, until 2050. A number of initiatives have been adopted in order to fulfil these expectations. On the other hand, it is widely recognized that, every product's supply chain consists of energy highly consuming processes. Carbon footprint is a parameter that should be integrated in the improvement of these processes' energy efficiency. In this paper, three new approaches of the Carbon Footprint (CF), produced cost allocation (end-user pays; production based; profit based), among producers and users are being analyzed. These approaches' differences are focused to the "blame" put to each stakeholder involved, during the different phases of the "product's" life cycle. Everyone should pay a fair price, to fully recover the costs related to the entire process. This could only lead to a socially just pricing policy of a product and to improvements in the performance targets of an organization. Keywords: carbon footprint; full water cost recovery; water supply chain.
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SSRN Electronic Journal, 2014
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Author(s): Harvey, John; Butt, Ali A.; Saboori, Arash; Lozano, Mark; Kim, Changmo; Kendall, Alissa | Abstract: The purpose of this white paper is to provide Caltrans with a methodology that uses LCA and LCCA analyses to create a “supply curve” that ranks the different strategies/actions that can be taken to reduce GHG emissions and lessen any other environmental impacts that affect ecosystems and human health. For Caltrans to implement the proposed methodology, the process must be validated and assessed using currently available actions. This white paper presents the methodology and demonstrates its initial use in quantifying and ranking several potential strategies.
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Industry practitioners and policy makers are under increasing pressure to continuously reduce the negative environmental impact of their supply chains. An original equipment manufacturer that is concerned with minimizing the environmental impact of its activities should choose its suppliers based on the trade-off between costs and respective emissions. This decision requires the manufacturer to coordinate closely with its suppliers in order to achieve the required level of emissions. In this paper, we develop a mixed integer program for the carbon-sensitive supply chain that minimizes emissions throughout the supply chain by taking into consideration green procurement also known as environmental sourcing. A sample case study is presented with a life cycle assessment of three scenarios based on different carbon emissions costs.