Enhancing efficiency in supply chain management: A synergistic approach to production, logistics, and green investments under different carbon emission policies

The study examines the influence of different carbon policies and the incorporation of green technologies in a two-echelon supply chain, with a focus on carbon emissions generated during transportation, production, and storage phases. The study evaluates three strategies for controlling carbon emissions: setting a maximum limit on total emissions, implementing carbon-taxation, and adopting a cap-and-trade framework. The proposed model assists businesses determine the optimal production and delivery volumes, as well as calculate the most effective investment in green technologies to reduce costs in the context of different carbon emission regulations. Furthermore, this study offers practical guidance for policymakers, highlighting the importance of balancing environmental sustainability with economic growth. Results indicate that companies are more inclined to pursue advanced green technology solutions under a carbon tax policy. The analysis highlights that carbon emissions per unit of production and transportation distance significantly impact overall emissions. The imposed emission cap has a stronger influence than the emission reduction potential of green technologies. The study recommends that governments establish realistic emission limits in cap-and-trade schemes to prevent excessive trading of emission allowances by suppliers.