Model of Logistics Service Providers Transition to “Green” Services

Abstract This paper presents a dynamic model for the transition of logistics service providers from traditional to green transportation services. Driven by regulatory requirements and increasing market demand for sustainable practices, the need for such a model is critical for logistics providers to manage the complexities and cost implications of adopting green technologies. Utilizing real-world data from a leading Baltic logistics provider, the model integrates both micro and macro-level factors, offering a decision-making tool that simulates various scenarios and fore-casts outcomes over a ten-year period. Key findings reveal that while green transportation costs are projected to decrease below traditional costs, demand for traditional services will persist, highlighting the need for a balanced approach in planning. This research contributes a novel framework that aids logistics providers in strategic planning and forecasting the evolution of green logistics, providing valuable insights into future trends in the industry