Study On The Third-party Remanufacturing Decisions Under Government Subsidy And Carbon Tax Mechanism

As an important way of waste reprocessing in a closed-loop supply chain,remanufacturing has the dual benefits in economy and environmental protection,thus favored and supported by government,enterprises and consumers.The government's intervention mechanism takes a guiding and supervising role in developing remanufacturing industry,resulting in putting higher requirements for remanufacturing closed-loop supply chain management.Given the case where the manufacturer produces new products and a third party is engaged in remanufacturing process,this paper studies enterprises' operational strategy under the government's subsidy mechanism and carbon tax mechanism,and tries to find an optimal policy of subsidy and carbon tax rate.First,assuming the government subsidizes the enterprise that sells remanufactured goods,and this paper establishes the game model among the government,manufacturer and third party based on the two models in which the manufacturer authorizes or outsources the remanufacturing process to a third party,in order to study the impact of the subsidy mechanism on the production and pricing decision of the two enterprises,and that on the environment.Then,with the aim of maximizing social welfare,the optimal subsidy of the government is obtained.Finally,the impact of market acceptance of remanufactured products on the three decision makers is investigated by numerical examples.The results show that government subsidy policy can promote the third party remanufacturing,and beneficial to all parties involved in the closed-loop supply chain.Second,under the assumption that government imposes carbon taxes on enterprises,based on the two models of authorization and outsourcing,this paper establishes the decision-making model of the government,the manufacturer and the third party respectively,to study the impact of the carbon tax mechanism on the enterprises and environment.With the aim of maximizing social welfare,the optimal carbon tax rate is therefore obtained.The numerical example is further employed to comprehensively analyze the impact of market acceptance and emission reduction advantages of remanufactured products on the government,manufacturer and third party.The results show that when remanufactured products enjoy higher market acceptance and bigger advantages in reducing emissions,the carbon tax policy will largely excite the interests of enterprises to remanufacture.Otherwise,it will discourage their remanufacturing operations.