How does environmental policy affect operations and supply chain management: A literature review

Abstract

This study offers a comprehensive and systematic review and analysis of studies focusing on operations and supply chain management in the context of environmental policy. We meticulously identify and classify 137 papers using a rigid categorization framework that includes three different policy types and multiple levels of operations and supply chain management. We then examine the key clusters within the current research landscape. Our assessment also includes three sustainability performance aspects. Our findings indicate that market-based instruments (MBIs) have garnered the most significant attention. Despite the seeming abundance of publications on this topic, it is worth noting that the contribution of publishing outlets is unbalanced. Furthermore, the various concerns and contributions of this literature are highlighted from a variety of perspectives, including pricing, production planning, inventory management, technology management, coordination mechanisms, competition and cooperation, recycling and remanufacturing activities, transportation decisions, and network design. We suggest that future research investigate innovative methodological approaches, such as empirical research and case studies, and venture toward the exploration of more intricate forms of dynamic regulation. Additionally, endeavors should be directed towards developing models that incorporate stochastic demand patterns, accounting for information asymmetry, considering psychological factors influencing decision makers, such as fairness preferences and risk aversion, and conducting in-depth investigations into more intricate supply chain coordination contracts.

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