Research On Decisions Of Closed-loop Supply Chain Based On Old-for-remanufacturing Subsidy And Carbon Tax

With the rapid development of science and technology,and a large number of obsolete and outdated waste products have appeared in the society.Improper disposal of some waste products will damage our environment.Recycling and remanufacturing can not only alleviate the contradiction between the limited resources and excessive consumption,but also to maximize the residual value of the waste products,and can bring new economic opportunities for enterprises.In order to make full use of recycling and remanufacturing on environmental protection and resource conservation,the government as the main economic supervisor and policy maker has introduce a series of policy such as financial subsidies and carbon regulation.What impact these policies will have on the closed-loop supply chain,and the feasibility and effectiveness of these policies need to be further studied.Based on implementation of old-for-remanufacturing,and draw on the experience of some subsidy policies which with a wide range of applications in the world,four types of closed-loop supply chain model is constructed in this paper.Medel 1:Non governmental incentive mechanism;Medel 2:old-for-remanufacturing subsidy mechanism;Medel 3:carbon tax mechanism;Medel 4:carbon tax combined with the old-for-remanufacturing subsidy.Then,market demand function are derived based on market segmentation and consumer utility,the equilibrium decision are derived based on Stackelberg game.Finally,through mathematical derivation and numerical simulation,this paper studied the impact of old-for-remanufacturing subsidy and carbon tax on the closed-loop supply chain,and then make a comparison from the perspective of economic and environmental between single mechanism and double mechanism.The results show that:(1)Under old-for-remanufacturing subsidy,the price of new products and recycling is reduced,The demand for remanufactured products from the initial consumers is decreased,but increased from the repeat consumers(2)Under the carbon tax,the price of new products and remanufactured products increased,the demand for new products decreased,and the demand for remanufactured products increased.Carbon tax,which can well control carbon emissions,but will damage the profits of companies seriously.(3)The old-for-remanufacturing subsidy is more conducive to recycling,Carbon tax is benefit for carbon reduction.However,recycling of old products or carbon emissions can not fully describe the impact of the production,sale,use and recycling of the entire supply chain system on the environment.Therefore,the life cycle assessment(LCA)can describe environmental benefits more comprehensive.Research shows that the double mechanism(carbon tax combine with old-for-remanufacturing subsidy)can not only overcomes the disadvantages of old-for-remanufacturing subsidy mechanism which is at the expense of unlimited spending of government and relieve impact of carbon tax to profit loss of the supply chain,but also achieved good environmental benefits.