Scandinavian Working Papers in Economics

HUI Working Papers,
HUI Research

No 76: Optimal retail location and CO2 emissions

Kenneth Carling, Johan HÃ¥kansson () and Niklas Rudholm
Additional contact information
Kenneth Carling: School of Technology and Business Studies, Postal: Dalarna University, SE-791 88 Falun, Sweden
Johan HÃ¥kansson: School of Technology and Business Studies, Postal: Dalarna University, SE-791 88 Falun, Sweden
Niklas Rudholm: The Swedish Research Institute of Trade (HUI), Postal: HUI Research AB, Regeringsgatan 60, 103 29 Stockholm, Sweden, and School of Technology and Business Studies, Dalarna University, SE-791 88 Falun, Sweden

Abstract: In this paper, the p-median model is used to find the location of retail stores that minimizes CO2 emissions from consumer travel. The optimal location is then compared with the existing retail location, and the excess CO2 emissions compared with the optimal solution is calculated. The results show that by using the environmentally optimal location, CO2 emissions from consumer travel could be reduced by 22 per cent.

Keywords: Firm location; spatial distribution of firms; p-median model; emission reduction

JEL-codes: D22; L13; L81; R12

8 pages, November 19, 2012

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