Speaker: Prof.Hu Bin, The University of Texas at Dallas
Time: 9:00-10:30, July 5
Venue: Room 204,Qiyun Building, Chengguan Campus
Abstract:
Firms are increasingly disclosing Scope 3 (supply chain) carbon emissions in addition to Scope 1-2 (direct and energy consumption) emissions. Two common Scope 3 emission assessments exist: Life-Cycle which encompasses emissions of all firms in the supply chain, and Cradle-to-Gate which encompasses emissions of all upstream firms. One can also conceptualize a Gate-to-Grave assessment which encompasses emissions of all downstream firms. We consider a supply chain where each firm discloses its carbon emissions subject to societal pressure, and study their carbon-reduction and product-pricing decisions and the supply chain outcome in terms of equity and efficiency under different carbon emission-disclosure regulations. We find that Gate-to-Grave is consistently the most equitable Scope 3 assessment in terms of both carbon and profit reductions along the supply chain, whereas all assessments are equally efficient in terms of both consumer welfare and supply chain profit for given supply chain emissions. These findings strongly advocate for the Gate-to-Grave Scope 3 emission assessment’s formal recognition and potential implementation.
Source: School of Management
