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Trade-Old-for-Remanufactured Closed-Loop Supply Chains with Carbon Tax and Government Subsidies
Shu, Tong1; Huang, Chunfen1; Chen, Shou1; Wang, Shouyang2; Lai, Kin Keung3,4
2018-11-01
Source PublicationSUSTAINABILITY
ISSN2071-1050
Volume10Issue:11Pages:25
AbstractThe constantly increasing CO2 emissions are threatening the environment tremendously. Facing the pressure of environmental activists and public opinion, businesses and governments are taking action to reduce carbon emissions. Among these endeavors, carbon tax and subsidy policies proposed by governments are widely adopted. Remanufacturing is believed to save manufacturing costs and reduce carbon emissions from the process of enterprise operation, and it is increasingly being accepted by enterprises. However, different consumers' willingness to pay for remanufactured products and the durability of new products will also affect consumers' willingness to buy remanufactured products. Therefore, considering the discrepancy between consumer willingness to pay and product durability, we established the trade-old-for-remanufactured (TOR) model for a scenario of carbon tax and government subsidies. Through the analysis of the model, we obtained the optimal pricing and production decisions of manufacturers (remanufacturers) in the case of carbon tax and government subsidies. Our results show that, when there is no carbon tax constraint, the increase in consumer willingness to pay and the adjustment in product durability can stimulate consumers to participate in TOR projects and augment enterprises' profits. However, it can also lead to a carbon rebound that increases corporate carbon emissions. When there is a carbon tax constraint, the introduction of carbon tax contributes to a reduction in carbon emissions, while enterprises tend to lose profits. In order to achieve a win-win between corporate profits and carbon emissions, we considered government subsidy policies. Our numerical examples illustrate that appropriate carbon tax and government subsidies can curb carbon emissions and also increase profits for enterprises.
Keywordtrade-old-for-remanufactured consumer willingness to pay product durability carbon tax government subsidies
DOI10.3390/su10113935
Language英语
Funding ProjectNational Natural Science Foundation of China[71771080] ; National Natural Science Foundation of China[71172194] ; National Natural Science Foundation of China[71521061] ; National Natural Science Foundation of China[71790593] ; National Natural Science Foundation of China[71642006] ; National Natural Science Foundation of China[71473155] ; National Natural Science Foundation of China[71390335] ; National Natural Science Foundation of China[71571065]
WOS Research AreaScience & Technology - Other Topics ; Environmental Sciences & Ecology
WOS SubjectGREEN & SUSTAINABLE SCIENCE & TECHNOLOGY ; Environmental Sciences ; Environmental Studies
WOS IDWOS:000451531700109
PublisherMDPI
Citation statistics
Document Type期刊论文
Identifierhttp://ir.amss.ac.cn/handle/2S8OKBNM/31882
Collection系统科学研究所
Affiliation1.Hunan Univ, Sch Business, Changsha 410082, Hunan, Peoples R China
2.Chinese Acad Sci, Acad Math & Syst Sci, Beijing 100190, Peoples R China
3.Shaanxi Normal Univ, Int Business Sch, Xian 710062, Shaanxi, Peoples R China
4.Univ Hong Kong, Dept Ind & Mfg Syst Engn, Pokfulam Rd, Hong Kong, Hong Kong, Peoples R China
Recommended Citation
GB/T 7714
Shu, Tong,Huang, Chunfen,Chen, Shou,et al. Trade-Old-for-Remanufactured Closed-Loop Supply Chains with Carbon Tax and Government Subsidies[J]. SUSTAINABILITY,2018,10(11):25.
APA Shu, Tong,Huang, Chunfen,Chen, Shou,Wang, Shouyang,&Lai, Kin Keung.(2018).Trade-Old-for-Remanufactured Closed-Loop Supply Chains with Carbon Tax and Government Subsidies.SUSTAINABILITY,10(11),25.
MLA Shu, Tong,et al."Trade-Old-for-Remanufactured Closed-Loop Supply Chains with Carbon Tax and Government Subsidies".SUSTAINABILITY 10.11(2018):25.
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