The Impact Of Government Regulation On Weee Closed-loop Supply Chain Decision-making

Along with the rapid development of the economy, the problems of environment caused by WEEE, which concerned by scholars and government’s attention. In order to control environmental problems caused by WEEE, governments will choose to implement appropriate policies. Different governmental financial interventions will be chosen to enhance sustainable development, the two most common methods of policies:subsidy and charge, According to its own national conditions different governments may adopt different policy, even in different periods according to the condition change, as same government will adopt different models. There are three kinds of common models:charges and subsidies combined model, single, subsidy model, single charge model; Models will be different for various supply chain participants and will have different effects. In the specific environment, what kind of incentive model the government chosen is more effective. Under different models, what measures the manufacturers, retailers will choose. What of influence for different government incentive policy would affect the supply chain participants, And whether the current measures could be adjusted. All of these questions are worthy of deep research and discussion.Based on the above problem, this paper studies the supply chain which composed of manufacturers, retailers and recyclers. Fristly, through building four models:subsidy combined charge’s model, single subsidy’s model, single charge’s model; Secondly, obtaining different optimal solution by game theory, depending on the different model; Finally, a comparative analysis of different government policy influence for involved participating in the supply chain through the optimal solution, and the influence of different factors on the various models of the parties of variables. The main work of this paper are summarized as follows:(1) Combing roughly China promulgated regulations against the WEEE, introducing the concept of green degree of product, building the basic mode WEEE closed-loop supply chain, focus on highlighting the government’s macro-control measures,analyzing the impact of government regulation and product differentiation on the decision-making loop supply chain decision-making game, and comparing the different effects of government regulation on the government’s macro-control tools to supply chain decision-making. The result finds:Within different governments modes, the main loop supply chain decisions will be affected differently, product’s green degree and product prices as well as the degree of wholesale prices showed a positive correlation with each other, meanwhile product’s green degree has a direct effect on main supply chain.(2) Through the analysis of the relationship between product’s green degree and product’s demand, introducing product differentiation, and base on it, comparative analysis of the decision-making of government regulation under the influence of different modes of supply chain for each subject, finally, draw the appropriate conclusions by numerical simulation.The results indicate:considering product differentiation, the new product’s green degree only affects the price of new products and new product wholesale price decisions, remanufactured product’s green degree are only making-an impact on remanufactured product prices and wholesale prices remanufactured products. The impact of product differentiation impact on the main profit supply chain, is related to the degree of product’s green differentiation degree. Finally, we draw the appropriate conclusions by numerical simulations.