Global Reverse Supply Chain Redesign for Household Plastic Waste under the Emission Trading Scheme. Bing, X., Bloemhof-Ruwaard, J. M., Chabaane, A., & van der Vorst, J. Journal of Cleaner Production, 103:28–39, 2015.
doi  abstract   bibtex   
With increasing global resource scarcity, waste becomes a resource that can be managed globally. A reverse supply chain network for waste recycling needs to process all the waste with minimum costs and environmental impact. As re-processing of waste is one of the major sources of pollution in the recycling processes, a mechanism is needed to control and reduce the emission impact in the re-processing as a key to facilitate the globalized reverse supply chain and avoid spreading pollutants overseas. Emission Trading Schemes (ETS) can function as policy instruments for controlling emissions. The ETS introduces a trade-off between the economic efficiency and the environmental impacts. ETS has been implemented in Europe and is developing rapidly in China too. The aim of the research is to re-design a reverse supply chain from a global angle based on a case study conducted on household plastic waste distributed from Europe to China. Emission trading restrictions are set on the processing plants in both Europe and China. We modeled a network optimization problem using integer programing approach, allowing the re-allocation of intermediate processing plants under emission trading restrictions. Optimization results show that global relocation of re-processors leads to both a reduction of total costs and total transportation emission. ETS applied to re-processors further helps to reduce emissions from both re-processing and transportation sectors. Carbon cap should be carefully set in order to be effective. With a given carbon cap, the model also shows the effective carbon price range. These results give an insight into the feasibility of building a global reverse supply chain for household plastic waste recycling and demonstrate the impact of ETS on the network design.
@article{bing_global_2015,
	title = {Global {Reverse} {Supply} {Chain} {Redesign} for {Household} {Plastic} {Waste} under the {Emission} {Trading} {Scheme}},
	volume = {103},
	issn = {0959-6526},
	doi = {10.1016/j.jclepro.2015.02.019},
	abstract = {With increasing global resource scarcity, waste becomes a resource that can be managed globally. A reverse supply chain network for waste recycling needs to process all the waste with minimum costs and environmental impact. As re-processing of waste is one of the major sources of pollution in the recycling processes, a mechanism is needed to control and reduce the emission impact in the re-processing as a key to facilitate the globalized reverse supply chain and avoid spreading pollutants overseas. Emission Trading Schemes (ETS) can function as policy instruments for controlling emissions. The ETS introduces a trade-off between the economic efficiency and the environmental impacts. ETS has been implemented in Europe and is developing rapidly in China too. The aim of the research is to re-design a reverse supply chain from a global angle based on a case study conducted on household plastic waste distributed from Europe to China. Emission trading restrictions are set on the processing plants in both Europe and China. We modeled a network optimization problem using integer programing approach, allowing the re-allocation of intermediate processing plants under emission trading restrictions. Optimization results show that global relocation of re-processors leads to both a reduction of total costs and total transportation emission. ETS applied to re-processors further helps to reduce emissions from both re-processing and transportation sectors. Carbon cap should be carefully set in order to be effective. With a given carbon cap, the model also shows the effective carbon price range. These results give an insight into the feasibility of building a global reverse supply chain for household plastic waste recycling and demonstrate the impact of ETS on the network design.},
	language = {English},
	journal = {Journal of Cleaner Production},
	author = {Bing, X. and Bloemhof-Ruwaard, J. M. and Chabaane, A. and van der Vorst, J.G.A.J.},
	year = {2015},
	keywords = {logistics, management, network design},
	pages = {28--39}
}

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