Designing an Environmentally-Friendly Logistics System

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International business has been undergoing a period of rapid transformation and the era of mega-competition has begun. It is necessary for them to organize a logistics system to respond quickly to the consumers' needs, which results small-sized and frequent delivery and pick-up, making the traffic congestion and pollution worse.In this research, urban freight transport policies of European countries were reviewed first, so that their environmental considerations in policy formulation are clarified. After making an evaluation framework with efficiency and equity concerns, alternative scenarios were developed on future improvement process of urban logistics system. Major stakeholders in the logistics system were interviewed and requested to make comments on the above scenarios. It is concluded that beneficiary pay principle and polluter pay principle should be introduced in the logistics policy formulation in order to make consensus among people.