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<p>Plastic packaging is essential for product protection, hygiene, and shelf life, but its production and disposal are major contributors to global CO₂ emissions. Despite growing regulatory attention, industries have yet to achieve carbon–neutral packaging solutions. Existing mechanisms—such as carbon taxes and cap-and-trade—often fail to capture the complexity of packaging-related emissions. This study develops an integrated framework that embeds both linear and non-linear financial penalty models into production and distribution planning, formulated as Mixed-integer optimization models. The framework evaluates trade-offs between operational costs and emissions under different regulatory settings, including strict caps, taxation, and hybrid mechanisms. Results show that significant emission reductions can be achieved through optimized operational decisions with only minor cost increases. The study contributes to both academia and policy by providing a structured decision-support tool, illustrating how penalty mechanisms can incentivize more sustainable supply chain practices, particularly in plastic packaging.</p>

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Decarbonizing Supply Chains through Linear and Non-Linear Penalty Models: The Case of Plastic Packaging

  • 期刊论文

  • 发表日期：

    2026年1月30日

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  • Akash,
  • Sandeep Singhal

摘要

Plastic packaging is essential for product protection, hygiene, and shelf life, but its production and disposal are major contributors to global CO₂ emissions. Despite growing regulatory attention, industries have yet to achieve carbon–neutral packaging solutions. Existing mechanisms—such as carbon taxes and cap-and-trade—often fail to capture the complexity of packaging-related emissions. This study develops an integrated framework that embeds both linear and non-linear financial penalty models into production and distribution planning, formulated as Mixed-integer optimization models. The framework evaluates trade-offs between operational costs and emissions under different regulatory settings, including strict caps, taxation, and hybrid mechanisms. Results show that significant emission reductions can be achieved through optimized operational decisions with only minor cost increases. The study contributes to both academia and policy by providing a structured decision-support tool, illustrating how penalty mechanisms can incentivize more sustainable supply chain practices, particularly in plastic packaging.