Logforum
Logforum
Logforum
ABSTRACT. Background: This study is for examining the association between green logistics, energy demand,
renewable energy consumptions, environmental performance and sustainable economic development in a panel of
nineteen developed economies around the globe over the period from 2008 - 2017. In addition, the article expands
domain of green logistics from firm level to country level and also connects national scale economic indicators with
green logistical performance.
Methods: The study employs Pools OLS (ordinary least square) statistical technique to check hypothesis, while
secondary data have been used, which were downloaded from the World Bank.
Results: The results reveal that the green logistics indicators have strongly positive correlation with green energy
sources, FDI inflows, and Trade openness. On the other hand, greenhouse gas emissions and carbon emissions have
negative correlation with green logistics. Furthermore, renewable energy is a driving factor of green logistics and supply
chain operations which also promote environmental and economic sustainability.
Conclusion: This article provides the insight of the association between green logistics performance and national scale
economic and environmental indicators. In addition, this research will help practitioners, senior managers and
policymaker to understand the importance of renewable energy and green practices in logistical operations.
Key words: Renewable energy; Trade openness; Greenhouse gas emissions; Green Supply chain management;
Economic development.
conducted a panel study in the context of economic performance and build competitive
European countries to explore the association advantages [Simão et al., 2016]. Zaman and
between green logistics and economic Shamsuddin, [2017] did a study on green
indicators. Seen from the findings, greenhouse logistics, and the results showed that logistics
gas and carbon emissions would affect product indicators are well-connected with the industry
value added and GDP per capita income of value added, energy prices, and trade
countries. Due to electronic media and social openness, etc. that provoke GSCM (green
websites, consumers are more aware of supply chain management) in the area.
ecological and polluted products as compare to Aldakhil et al., [2018] explored the
before. In addition, regulatory authorities and relationship between green logistics, economic
governmental bodies are more aggressive to factors (GDP, Trade openness, and FDI
put environmental-friendly policies into inflows) and environmental indicators (CO2
practice. emissions). Seen from the results, the
significantly positive association between
Undeniably, the adoption of green practices green logistics indices and country’s per capita
in logistics and business operations provides income, which confirmed that supply chain
opportunities to build competitive advantages management is integrated with country’s
against their competitors. Khan and Dong, economic development and corporate
[2017] highlighted that green logistics does not environmental policies that are necessary for
only improve environmental performance in continuous payoffs. Vachon and Mao [2008]
terms of reduction in carbon emissions, emphasized the importance of implementing
greenhouse gas emissions, climate change, and green practices in logistics operations for
global warming, but will also enhance protecting environmental sustainability.
Fig. 1. Relationship between green supply chain, economic growth and environmental factors
According to Abrams et al. [2017] the inspected the linkage of senior management
green logistics is a complete system support and the adoption of green practices in
responsible for the environment, not only supply chain operations in context of Chinese
dealing with forward logistics, [Chunguang et manufacturing industry. After the control on
al., 2008] but also covering the reverse the influence of marketing, cost pressures,
logistics including waste recycling, energy supplier and firm size, they found significantly
recovery, remanufacturing, and disposal in positive relationship between senior
landfill. Khan et al., [2016] and Maritime, management support and adoption of green
[2016] examine the influence of green practices. The significance of green logistics
management operations on customer across the European countries is desirable to
satisfaction and long-term orientation. The promote their ecological products in
findings revealed that green practices enhance international markets including Asian and
customer trust and satisfaction with improved African markets. Fig.1. displays the
positive image of firms. Zhu et al., [2008]
480
Khan S.A.R., 2018. The Relationship between Green Supply Chain Performance, Energy Demand, Economic
Growth and Environmental Sustainability: An Empirical Evidence from Developed Countries: An Empirical
Evidence. LogForum 14 (4), 479-494. http://dx.doi.org/10.17270/J.LOG.2018.304
481
,
Khan S.A.R., 2018. The Relationship between Green Supply Chain Performance, Energy Demand, Economic
Growth and Environmental Sustainability: An Empirical Evidence from Developed Countries: An Empirical
Evidence. LogForum 14 (4), 479-494. http://dx.doi.org/10.17270/J.LOG.2018.304
The association between economic growth and efficiency of logistical operations and reduce
green logistics environmental degradations.
Green practices in logistical and supply Wanzala and Zhihong [2016] the inefficient
chain operations improve the economic logistics system ignoring environment
growth. Further, green manufacturing, green discourages investments and incurs heavy
purchasing and ecological design of products costs in the supply chain systems such as
are supportive to enhance economic higher import duties, expensive storage and
performance of firms [Khan et al. 2018, Khan, delayed customs clearance due to polluted
Dong 2017, Zhang, Zhao 2012]. Zaman and materials, reduce exports and opportunities in
Shamsuddin, [2017] did this research on 15 European and Western countries. On the other
selected panel countries, and the findings hand, green logistics does not only attract
revealed that green logistics enhances the FDI foreign investors and tourists but also increases
inflows and trade openness, and mitigate the the export opportunities and captures new
harmful effects of business operations in terms markets in international arena. Based on the
of reduction in carbon emissions, fossil fuel above cited research papers, we construct the
consumptions and greenhouse gas emissions, following hypothesis:
which improves air quality and resolve the H3: The green logistics performance is
problems of climate change. Hansen and Rand, positively correlated with foreign direct
[2006] and Khan et al., [2017] FDI (foreign investment
direct investment) inflows act as one of the H4: The green logistics performance is
backbone for healthier economic growth. The positively correlated with greater business and
findings confirmed that FDI inflows are trade openness
significantly and positively correlated with
sustainable economic development. Bengoa The association between environment and
and Sanchez-Robles, [2003] did this study on green logistics performance
18 Latin American countries with the panel
data during 1970 to 1999, and the results A number of studies were conducted for
showed that green supply chain operations figuring out the relationship between
build positive image of the country, which environmental sustainability and logistics
attracts the foreign investors. [Khan et al. performance [Van-Hoek 1999]. Hayami et al.
2017] argued that the industry, manufacturing [2015] argued that air pollution in terms of
share in GDP is negatively affected by greater carbon emissions and greenhouse gas
carbon emissions. Shahbaz et al. [2015] emissions are severely increasing due to
conducted a panel research on African polluted supply chain operations and failure of
countries and found that energy consumption governmental bodies. Similarly Boin, Kelle,
increases carbon emissions, while usage of and Whybark [2010] warned we should be
biofuel and renewable energy may enhance prepared for environmental disaster due to the
environmental beauty. In addition, biofuel greater carbon emissions that were increasing
energy sources are inexpensive as compare to day-by-day. Wiebe, J. [2014] highlighted the
fossil fuel [Khan et al. 2018]. sustainability issues and explained that the
main problem was not what people were doing,
The increasing FDI makes significant but how they were doing, for example, if firms
contributions to economic growth of China manufacture products with green energy, they
[Wei et al. 2015]. The country is the second will protect the environmental beauty and also
largest foreign direct investment recipient in reduce the costs and build competitive
the world and these foreign direct investments advantage in terms of customer satisfaction
bring knowledge, capital and new managerial and trust with improved logistical operations
skills. [Lu et al. 2010] conducted an empirical and efficient delivery to customers. Dangelico
study in China to explore the relationship and Pontrandolfo [2013] found that corporate
between FDI inflows and green logistics sector financial performance is positively
operations. The findings revealed that green correlated with green logistical and supply
practices in logistical operations improve the chain operations, and CO2 emissions are not
482
Khan S.A.R., 2018. The Relationship between Green Supply Chain Performance, Energy Demand, Economic
Growth and Environmental Sustainability: An Empirical Evidence from Developed Countries: An Empirical
Evidence. LogForum 14 (4), 479-494. http://dx.doi.org/10.17270/J.LOG.2018.304
Energy Energy is the energy consumption (Kg of oil equivalent per capita)
CO2 is the carbon emissions (metric tons per capita) emits through
CO2
logistics systems, which does harm to environmental sustainability.
483
,
Khan S.A.R., 2018. The Relationship between Green Supply Chain Performance, Energy Demand, Economic
Growth and Environmental Sustainability: An Empirical Evidence from Developed Countries: An Empirical
Evidence. LogForum 14 (4), 479-494. http://dx.doi.org/10.17270/J.LOG.2018.304
Table 3 indicates the correlation matrix and emissions, greenhouse gas emissions, fossil
it can be found that environmental factors CO2 fuel consumption, energy demand and
484
Khan S.A.R., 2018. The Relationship between Green Supply Chain Performance, Energy Demand, Economic
Growth and Environmental Sustainability: An Empirical Evidence from Developed Countries: An Empirical
Evidence. LogForum 14 (4), 479-494. http://dx.doi.org/10.17270/J.LOG.2018.304
renewable energy consumptions have positive logistics performance. Carbon emissions and
correlation with logistics performance greenhouse gas emissions have negative
indicator. Logistics operations act as correlation with green energy consumption, as
a significant generator of carbon emission due renewable energy consumption is increasing
to greater consumption of fossil fuel and and CO2 emissions and greenhouse gas
energy demand, while renewable energy emissions are decreasing, which is the positive
consumption is growing in trend and many sign for healthy and environmental friendly
developed and developing countries are logistics operations. Finally, FDI inflows are
changing towards renewable energy sources. positively associated with renewable energy
sources, because REC (renewable energy
Foreign direct investments (FDI) inflow consumption) is a first step towards greener
and Trade openness have positive relationship production and logistics operations, and REC
with logistics operations. It means FDI inflow provides opportunities to invest in a country,
and Trade openness are improved by which is a positive sign for green logistics
environmental friendly policies in business and performance and economic and environmental
logistics activities. Energy efficiency is sustainability.
positively associated with FDI inflows and
Before applying pooled OLS statistical root tests, it can be confirmed that our all
method, we need to confirm our all endogenous and explanatory variables are
explanatory and dependent variables are stationary at level.
stationary at level to fulfil the prerequisite
requirement of pooled OLS statistical method. After fulfilling the essential parametric
Table 4 indicates the unit root test by assumptions, OLS statistical method was
considering three different criteria including adopted to test hypothesis. Table 5 indicates
ADF- Fisher Test, Levin, Lin & Chu Test, and results of hypothesis.
PP- Fisher Test. Seen from the findings of unit
485
,
Khan S.A.R., 2018. The Relationship between Green Supply Chain Performance, Energy Demand, Economic
Growth and Environmental Sustainability: An Empirical Evidence from Developed Countries: An Empirical
Evidence. LogForum 14 (4), 479-494. http://dx.doi.org/10.17270/J.LOG.2018.304
486
Khan S.A.R., 2018. The Relationship between Green Supply Chain Performance, Energy Demand, Economic
Growth and Environmental Sustainability: An Empirical Evidence from Developed Countries: An Empirical
Evidence. LogForum 14 (4), 479-494. http://dx.doi.org/10.17270/J.LOG.2018.304
logistics performance. Abbasi and Nilsson In addition, polluted logistics activities would
[2016] explained that transportation activities also incur huge costs in end-to-end supply
have a number of negative impact on chain with heavy import duties and delayed
environmental sustainability. Because a large customs clearance due to polluted materials.
number of countries are still dependent on non- On the other hand, polluted logistics systems
renewable energy sources, which have serious also face pressure from governments and
negative effect on climate change, air pollution customer side in terms of heavy penalties, bad
and people’s health. On the other hand, Abbasi reputation and boycott of polluted firms’
and Nilsson, [2016] insisted that the adoption products [Khan and Qianli 2017].
of green practices in logistics operations are
inconclusive without the use of renewable The research conducted by Zhao et al.
energy in production and logistics activities. [2008] explored the association between green
Egilmez and Park [2014] concluded that practices and governmental policies, the results
logistics industry are the responsible for poor indicate that environmental performance can
air quality and environmental degradations, be enhanced through strong legal enforcement
and these environmental issues can be dealt by the governmental bodies. The key reason
with usage of renewable energy in supply for corporate sectors to implement ecological
chain and logistical operations. practices includes customers’ pressure, global
ecosystem deterioration, and environmental
Foreign direct investment inflow and trade policies implemented by government [Li et al.
openness are a measure of sustainable 2016]. However, some financial benefits and
economic development, while green practices competitive advantages are also motivate
in logistics and business activities attract enterprises to be engaged in green practices
foreign investor and provide export including, [Pearson, 2013] positive image
opportunities to manufacturing firms in pro- building, reduction in costs, export
environmentalist countries including USA, UK opportunities, and exploring new customers’
and Germany. In well-developed economies, markets [Nurjanni et al. 2016, Park et al. 2016,
FDI inflow and trade volume is greater due to Schaltegger, Synnestvedt 2002].
green practices and policies implemented by
governmental bodies. Our research shows that The greater greenhouse gas and carbon
trade openness and foreign direct investment emissions are the indicators to represent worst
inflows have positive relationship with green environmental performance. The findings
logistics operations at 1% and 5% level of confirmed that greenhouse gas emissions and
confidence respectively. There is no doubt that carbon emissions are negatively correlated
carbon and greenhouse gas emissions have with green logistics operations in selected
become a global issue, while regulatory panel of countries on 1% confidence level.
authorities and corporate sectors are facing so This results are also supported by other
strong pressure from local and international researches, including Khan et al. [2017] and
customers and United Nation that they have to Dangelico and Pontrandolfo [2013], Aldakhil
control harmful effects and improve the et al. [2018] suggested that companies’
environmental sustainability through adopting economic performance is negatively correlated
eco-friendly policies. Zaman and Shamsuddin, with higher pollution, while carbon emissions
[2017] conducted a panel study on green and greenhouse gas emissions not only create
logistics performances, the findings provide hindrance in adoption of green practices in
evidence that FDI inflows, energy demand, logistical and supply chain operations but also
manufacturing value added, and industry value create negative impact on enterprise reputation
added have positive relationship with green and image. K. H. Lee and Wu [2014] logistics
logistics performance. Wanzala and Zhihong, activities act as a significant contributor to CO2
[2016] polluted logistical systems do not only emissions and greenhouse gas emissions, and
destroy environmental beauty but also face the in order to mitigate the negative effects of
threat of losing pro-environmental customers’ logistical and supply chain operations,
market and also discourage export enterprises need to use renewable energy and
opportunities in pro-environmental countries. adopt green practices in their business
487
,
Khan S.A.R., 2018. The Relationship between Green Supply Chain Performance, Energy Demand, Economic
Growth and Environmental Sustainability: An Empirical Evidence from Developed Countries: An Empirical
Evidence. LogForum 14 (4), 479-494. http://dx.doi.org/10.17270/J.LOG.2018.304
488
Khan S.A.R., 2018. The Relationship between Green Supply Chain Performance, Energy Demand, Economic
Growth and Environmental Sustainability: An Empirical Evidence from Developed Countries: An Empirical
Evidence. LogForum 14 (4), 479-494. http://dx.doi.org/10.17270/J.LOG.2018.304
improves efficiency of energy, FDI inflows, Abdul S., Khan R., 2017. Does national scale
and usage of renewable energy in business economic and environmental indicators
activities, while greenhouse gas and carbon spur logistics performance ? Evidence from
emissions are decreased significantly. In UK, Environmental Science and Pollution
similar line, renewable energy sources are Research, 16, 28-51.
positively correlated with improved http://dx.doi.org/10.1007/s11356-017-0222-
performance of green logistics, attracting 9.
foreign investors and improving economic
Abdul S., Khan R., Qianli D., Zhang Y., 2017.
development. In other words, regulatory bodies
The Impact of Sustainable Supply Chain on
need to encourage renewable energy usage in
Enterprise Performance : In the Perspective
manufacturing and logistics operations to spur
of China, Journal of Advanced
countries’ FDI inflows and GDP per capita
Manufacturing Systems, 4, 13, 134-175.
income. On the other hand, polluted logistical
systems are rejected in European countries and Abrams J., Becker D., Kudrna J., Moseley C.,
they are not allowed to export in many pro- 2017. Does policy matter? The role of
environmental countries because of polluted policy systems in forest bioenergy
logistics vehicles. The association between development in the United States, Forest
logistics indices with environmental and Policy and Economics, 75, 41–48.
sustainable economic development confirmed http://dx.doi.org/10.1016/j.forpol.2016.12.0
that the eco-friendly logistical operations will 07
significantly promote environmental Ai T., Hon H., Sulaiman Z., 2015. Green
sustainability agenda in terms of greater Supply Chain Management , Environmental
utilization of biofuels, green and/ renewable Collaboration and Sustainability
energy sources. Performance, Procedia CIRP, 26, 695–699.
http://dx.doi.org/10.1016/j.procir.2014.07.0
35
ACKNOWLEDGMENTS AND
FUNDING SOURCE DECLARATION Bechtsis D., Tsolakis N., Vlachos D., Iakovou
E., 2017. Sustainable supply chain
management in the digitalisation era: The
This research is financially supported by the
impact of Automated Guided Vehicles,
following projects:
Journal of Cleaner Production, 142, 35,
− “Project of Green Logistics and
3970–3984.
Environment” (Project No. 2018002),
http://dx.doi.org/10.1016/j.jclepro.2016.10.
University Students Association of Science
057
and Technology Innovation and
Entrepreneurship, Chang’an University, Bhattacharya M., Paramati S.R., Ozturk I.,
Xi’an, Shaanxi, China 710064. Bhattacharya S., 2016. The effect of
− Scientific Innovation Practice Project of renewable energy consumption on
Postgraduate of Chang’an University, economic growth: Evidence from top 38
Xi’an, China. countries, Applied Energy, 162, 3, 733–
741.
http://dx.doi.org/10.1016/j.apenergy.2015.1
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Khan S.A.R., 2018. The Relationship between Green Supply Chain Performance, Energy Demand, Economic
Growth and Environmental Sustainability: An Empirical Evidence from Developed Countries: An Empirical
Evidence. LogForum 14 (4), 479-494. http://dx.doi.org/10.17270/J.LOG.2018.304
491
,
Khan S.A.R., 2018. The Relationship between Green Supply Chain Performance, Energy Demand, Economic
Growth and Environmental Sustainability: An Empirical Evidence from Developed Countries: An Empirical
Evidence. LogForum 14 (4), 479-494. http://dx.doi.org/10.17270/J.LOG.2018.304
492
Khan S.A.R., 2018. The Relationship between Green Supply Chain Performance, Energy Demand, Economic
Growth and Environmental Sustainability: An Empirical Evidence from Developed Countries: An Empirical
Evidence. LogForum 14 (4), 479-494. http://dx.doi.org/10.17270/J.LOG.2018.304
Słowa kluczowe: energia odnawialna, otwartość handle, emisja gazów cieplarnianych, zielone zarządzanie łańcuchem
dostaw, rozwój ekonomiczny
493
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Khan S.A.R., 2018. The Relationship between Green Supply Chain Performance, Energy Demand, Economic
Growth and Environmental Sustainability: An Empirical Evidence from Developed Countries: An Empirical
Evidence. LogForum 14 (4), 479-494. http://dx.doi.org/10.17270/J.LOG.2018.304
Ergebnisse: Aufgrund der erzielten Resultate stellte man fest, dass die Kennziffern der grünen Logistik eine stark
positive Korrelation mit grünen Energiequellen, dem FDI-Fluss und der Aufgeschlossenheit des Handels aufweisen.
Andererseits weist die Treibhausgas- und Kohleemission auf die negative Korrelation mit der grünen Logistik hin.
Darüber hinaus ist die erneuerbare Energie ein führendes Element innerhalb der grünen Logistik und der operativen
Lieferkette, welches auch die wirtschaftliche nachhaltige Entwicklung unterstützt.
Fazit: In der Arbeit wurden die Zusammenhänge zwischen der grünen Logistik und den inländischen, wirtschaftlichen
und ökologischen Kennziffern projiziert. Außerdem gibt sie Hinweise für die Praktiker der mittleren Verwaltungsebene
und für die Politiker, damit sie alle die Relevanz der regenerativen Energie und der grünen Aktivitäten innerhalb der
operativen Logistik besser verstehen können.
Zhang Yu
School of Economics and Management
Chang'an University, Xi'an, China
email: m18392061877@163.com
Hêriş Golpîra
Department of Industrial Engineering
Sanandaj Branch
Islamic Azad University, Sanandaj, Iran
494