System dynamics modelling of product carbon footprint life cycles for collaborative green supply chains

Abstract

Governments, environmental groups and industry associations are reducing greenhouse gas emissions to insure environmental sustainability. Manufacturing plays an important role in economic development but is a main cause of global warming since production requires energy consumption. The supply chain leadership coalition has requested all members to publish their carbon emission data and to reduce emissions. In addition, the International Standard Organization (ISO) has legislated and published ISO14064 as an industrial guideline to control global greenhouse gas emissions. The British Standards Institution developed PAS2050 as the world's first government regulation to control a product's carbon footprint. Providing carbon labelling on products increases product appeals and sales revenues, but also increases manufacturing costs. This research aims to minimise a product's carbon footprint, while controlling its manufacturing cost during collaborative green product design and production planning. An economic input–output life cycle assessment approach is used to evaluate the carbon emissions of new products. The life cycle assessment identifies problematic carbon emissions within the supply chain. Based on the input and output data, the research applies system dynamics modelling to simulate and identify green product redesigns with cost-effective carbon footprints during manufacturing. The purpose of this research is to derive optimal means to reduce the carbon footprint for green product development and production. Finally, the paper uses the case of an electronic image projector to demonstrate the application of the methodology.

Keywords:

• product carbon footprint
• economic input–output life cycle assessment
• system dynamics
• mass customisation

Acknowledgements

This research was partially supported by the National Science Council and the Bureau of Energy, Ministry of Economic Affairs in Taiwan.