846. Interdependencies and Trade-offs Between Climate Change and Waste Management Policies: Operational Impact and Policy Effectiveness
Invited abstract in session TA-42: Sustainable supply chains II, stream Circular & Sustainable Supply Chains.
Tuesday, 8:30-10:00Room: Newlyn GR.02
Authors (first author is the speaker)
| 1. | Jamal Sakaya
|
| Haigazian University | |
| 2. | Andrea Masini
|
| HEC Paris |
Abstract
The urgency to mitigate climate change and reduce waste is prompting governments worldwide to adopt stricter regulations to abate greenhouse gas emissions and foster the implementation of circular economy models. As tighter environmental standards may impact firms' operations and, ultimately, their competitiveness, optimizing the design of regulatory instruments to maximize their effectiveness while mitigating potential negative impacts is of paramount importance. However, policies targeting climate change and waste reduction have often been studied in isolation, overlooking their potential interdependencies. We argue that failing to consider their interaction may undermine the effectiveness of regulatory mechanisms and lead to counterintuitive outcomes. This study builds upon and extends existing operations management models to analyze the interplay between two regulatory mechanisms: carbon allowance-based policies targeting suppliers in emissions-intensive industries and product take-back policies mandating minimum recycling by manufacturers. Our findings reveal contrasting effects: stricter carbon policies lower profits, consumer surplus, and emissions abatement but reduce untreated waste, while stringent take-back policies yield the opposite when recycling is inexpensive. These results highlight the potential for conflicts between environmental objectives and underscore the importance of coordinated policy design.
Keywords
- OR in Sustainability
Status: accepted
Back to the list of papers