Designing socially optimal rates of tax and rebate structures in directing migration of risk-averse suppliers towards sustainable products

References

• Agrawal, V., and D. Lee. 2019. “The Effect of Sourcing Policies on Suppliers’ Sustainable Practices.” Production and Operations Management 28 (4): 767–787.
   Web of Science ®Google Scholar
• Aouadi, A., and S. Marsat. 2018. “Do ESG Controversies Matter for Firm Value? Evidence from International Data.” Journal of Business Ethics 151 (4): 1027–1047.
   Web of Science ®Google Scholar
• Arrow, K. J. 1965. “Aspects of the Theory of Risk Bearing.” In The Theory of Risk Aversion. Helsinki: Yrjo Jahnssonin Saatio. Reprinted in: Essays in the Theory of Risk Bearing, Markham Publ. Co., Chicago, 1971, 90–109.
   Google Scholar
• Babich, V., and C. S. Tang. 2012. “Managing Opportunistic Supplier Product Adulteration: Deferred Payments, Inspection, and Combined Mechanisms.” Manufacturing & Service Operations Management 14 (2): 301–314.
   Web of Science ®Google Scholar
• Bontems, P., and C. Nauges. 2019. “Production Choices with Water Markets and Risk Aversion: The Role of Initial Allocations and Forward Trading.” European Review of Agricultural Economics 46 (4): 579–608.
   Web of Science ®Google Scholar
• Broll, U., X. Guo, P. Welzel, and W.-K. Wong. 2015. “The Banking Firm and Risk Taking in a two-Moment Decision Model.” Economic Modelling 50: 275–280.
   Web of Science ®Google Scholar
• Cai, J., H. Lin, X. Hu, and M. Ping. 2022. “Green Supply Chain Game Model and Contract Design: Risk Neutrality vs. Risk Aversion.” Environmental Science and Pollution Research 29 (34): 51871–51891.
   PubMed Web of Science ®Google Scholar
• Chen, X., S. Benjaafar, and A. Elomri. 2019. “On the Effectiveness of Emission Penalties in Decentralized Supply Chains.” European Journal of Operational Research 274 (3): 1155–1167.
   Web of Science ®Google Scholar
• Chen, Y. J., and M. Deng. 2013. “Supplier Certification and Quality Investment in Supply Chains.” Naval Research Logistics (NRL) 60 (3): 175–189.
   Web of Science ®Google Scholar
• Chen, H. S. Y, K.-H. Lai, and T.C.E Cheng. 2019. “Sustainable Service Supply Chains.” Chap. 12 in Handbook on the Sustainable Supply Chain.  185–206. Edward Elgar Publishing.
   Google Scholar
• Chen, J., A. Qi, and M. Dawande. 2019. “Supplier Centrality and Auditing Priority in Socially-Responsible Supply Chains.” Manufacturing & Service Operations Management 22 (6): 1107–1286.
   Google Scholar
• Chen, L., S. Yao, and K. Zhu. 2020. “Responsible Sourcing Under Supplier-Auditor Collusion.” Manufacturing & Service Operations Management. forthcoming. doi:10.1287/msom.2019.0861.
   Web of Science ®Google Scholar
• Chen, S., Q. Zhang, and Y. P. Zhou. 2019. “Impact of Supply Chain Transparency on Sustainability Under NGO Scrutiny.” Production and Operations Management 28 (12): 3002–3022.
   Web of Science ®Google Scholar
• D. A. de Jesus Pacheco, C. S. ten Caten, C. F. Jung, C. Sassanellie, and S. Terzie. 2019. “Overcoming Barriers towards Sustainable Product-Service Systems in Small and Medium-Sized Enterprises: State of the Art and a Novel Decision Matrix.” Journal of Cleaner Production 222: 903–921.
   Web of Science ®Google Scholar
• Eder-Hansen, J., J. Kryger, J. Morris, C. Sisco, and K. B. Larsen. 2012. “The Nice Consumer: Towards a Framework for Sustainable Fashion Consumption in the EU.” Danish Fashion Institute, Nordic Fashion Association, Copenhagen.
   Google Scholar
• Eichner, T. 2008. “Mean Variance Vulnerability.” Management Science 54: 586–593.
   Web of Science ®Google Scholar
• Eichner, T., and A. Wagener. 2009. “Multiple Risks and Mean-Variance Preferences.” Operations Research 57: 1142–1154.
   Web of Science ®Google Scholar
• Eichner, T., and A. Wagener. 2011. “Portfolio Allocation and Asset Demand with Mean–Variance Preferences.” Theory and Decision 70: 179–193.
   Web of Science ®Google Scholar
• Eichner, T., and A. Wagener. 2012. “Tempering Effects of (Dependent) Background Risks: A Mean-Variance Analysis of Portfolio Selection.” Journal of Mathematical Economics 48: 422–430.
   Web of Science ®Google Scholar
• Fahimnia, B., M. Pournader, E. Siemsen, E. Bendoly, and C. Wang. 2019. “Behavioral Operations and Supply Chain Management – a Review and Literature Mapping.” Decision Sciences 50 (6): 1127–1183.
   Google Scholar
• Gimenez, C., and E. Tachizawa. 2012. “Extending Sustainability to Suppliers: A Systematic Literature Review.” Supply Chain Management 17 (5): 531–543.
   Web of Science ®Google Scholar
• Giunipero, L. C., S. Bittner, I. Shanks, and M. H. Cho. 2019. “Analyzing the Sourcing Literature: Over Two Decades of Research.” Journal of Purchasing and Supply Management 25 (5): 100521.
   Web of Science ®Google Scholar
• Guo, X., A. Wagener, W.-K. Wong, and L. Zhu. 2018. “The two-Moment Decision Model with Additive Risks.” Risk Management 20 (1): 77–94.
   Google Scholar
• Hernandez-Pardo, R. J., T. Bhamra, and R. Bhamra. 2012. “Exploring SME Perceptions of Sustainable Product Service Systems.” IEEE Transactions on Engineering Management 60 (3): 483–495.
   Web of Science ®Google Scholar
• Hitchcock, T. 2012. “Low Carbon and Green Supply Chains: The Legal Drivers and Commercial Pressures.” Supply Chain Management 17 (1): 98–101. doi:10.1108/13598541211212249.
   Web of Science ®Google Scholar
• Huang, X., and G. Jiang. 2021. “Portfolio Management with Background Risk Under Uncertain Mean-Variance Utility.” Fuzzy Optimization and Decision Making 20 (3): 315–330.
   Web of Science ®Google Scholar
• Jiang, M., D. Chen, and H. Yu. 2021. “Research on Reward and Punishment Contract Model and Coordination of Green Supply Chain Based on Fairness Preference.” Sustainability 13: 8749. doi:10.3390/su13168749.
   Web of Science ®Google Scholar
• Johnstone, D., and D. Lindley. 2013. “, Mean–Variance and Expected Utility: The Borch Paradox.” Statistical Science 28 (2): 223–237.
   Web of Science ®Google Scholar
• KPMG. 2017. “The KPMG Green Tax Index, accessed 10 March 2019”. https://home.kpmg/content/dam/kpmg/tw/pdf/2017/09/655445_NSS_2017Green_TaxIndex_v18web.pdf.
   Google Scholar
• Lin, Z. 2020. “Manufacturer Rebate in Green Supply Chain with Information Asymmetry.” INFOR: Information Systems and Operational Research 58 (4): 723–737.
   Web of Science ®Google Scholar
• Ma, J., and Z. Wang. 2022. “Optimal Pricing and Complex Analysis for Low-Carbon Apparel Supply Chains.” Applied Mathematical Modelling 111: 610–629.
   Web of Science ®Google Scholar
• Mukherjee, S., and S. S. Padhi. 2022. “Sourcing Decision Under Interconnected Risks: An Application of Mean–Variance Preferences Approach.” Annals of Operations Research 313 (2): 1243–1268.
   Web of Science ®Google Scholar
• Nidhi, M. B., and V. Madhusudanan Pillai. 2019. “Product Disposal Penalty: Analysing Carbon Sensitive Sustainable Supply Chains.” Computers and Industrial Engineering 128: 8–23.
   Web of Science ®Google Scholar
• Padhi, S. S., and S. Mukherjee. 2021. “Optimal Portfolio Choices to Split Orders During Supply Disruption Risks: An Application of Sport’s Principle for Routine Sourcing.” Decision Sciences (in Press), 1–20. doi:10.1111/deci.12511.
   Google Scholar
• Porteous, A. H., S. V. Rammohan, and H. L. Lee. 2015. “Carrots or Sticks? Improving Social and Environmental Compliance at Suppliers Through Incentives and Penalties.” Production and Operations Management 24 (9): 1402–1413.
   Web of Science ®Google Scholar
• Pratt, J. W. 1964. “Risk Aversion in the Small and in the Large.” Econometrica 32: 122–136.
   Web of Science ®Google Scholar
• Rui, H., and G. Lai. 2015. “Sourcing with Deferred Payment and Inspection Under Supplier Product Adulteration Risk.” Production and Operations Management 24 (6): 934–946.
   Web of Science ®Google Scholar
• Serra, T., D. Zilberman, B. K. Goodwin, and A. Featherstone. 2006. “Effects of Decoupling on the Mean and Variability of Output.” European Review of Agricultural Economics 33 (3): 269–288.
   Web of Science ®Google Scholar
• Shalique, S., S. S. Padhi, J. Jayaram, and R. K. Pati. 2021. “Adoption of Symbolic Versus Substantive Sustainability Practices by Lower-Tier Suppliers: A Behavioral View.” International Journal of Production Research, 1–28. doi:10.1080/00207543.2021.1939454.
   Web of Science ®Google Scholar
• Shao, L., J. Yang, and M. Zhang. 2017. “Subsidy Scheme or Price Discount Scheme? Mass Adoption of Electric Vehicles Under Different Market Structures.” European Journal of Operational Research 262 (3): 1181–1195.
   Web of Science ®Google Scholar
• Tamayo-Torres, I., L. Gutierrez-Gutierrez, and A. Ruiz-Moreno. 2019. “Boosting Sustainability and Financial Performance: The Role of Supply Chain Controversies.” International Journal of Production Research 57 (11): 3719–3734. doi:10.1080/00207543.2018.1562248.
   Web of Science ®Google Scholar
• Tang, C. S., M. S. Sodhi, and M. Formentini. 2016. “An Analysis of Partially-Guaranteed-Price Contracts Between Farmers and Agri-Food Companies.” European Journal of Operational Research 254 (3): 1063–1073.
   Web of Science ®Google Scholar
• Touboulic, A., and H. Walker. 2015. “Love me, Love me not: A Nuanced View on Collaboration in Sustainable Supply Chains.” Journal of Purchasing and Supply Management 21 (3): 178–191.
   Web of Science ®Google Scholar
• Villena, V. H. 2019. “The Missing Link? The Strategic Role of Procurement in Building Sustainable Supply Networks.” Production and Operations Management 28 (5): 1149–1172.
   Web of Science ®Google Scholar
• Wang, W., Y. Zhang, W. Zhang, G. Gao, and H. Zhang. 2021. “Incentive Mechanisms in a Green Supply Chain Under Demand Uncertainty.” Journal of Cleaner Production 279: 123636. doi:10.1016/j.jclepro.2020.123636.
   Web of Science ®Google Scholar
• Wiengarten, F., D. Fan, M. Pagell, and C. K. Lo. 2019. “Deviations from Aspirational Target Levels and Environmental and Safety Performance: Implications for Operations Managers Acting Irresponsibly.” Journal of Operations Management 65 (6): 490–516.
   Web of Science ®Google Scholar
• Ye, F., Z. Cai, Y.-J. Chen, Y. Li, and G. Hou. 2021. “Subsidize Farmers or Bioenergy Producer? The Design of a Government Subsidy Program for a Bioenergy Supply Chain.” Naval Research Logistics 68: 1082–1097.
   Web of Science ®Google Scholar