Research On Retailer's Remanufacturing Differential Pricing And Emission Reduction Decision-making In The Context Of Carbon Allowance

With the continuous advancement of the socio-economic,the contradiction between resources,energy,climate,environment and economic development is becoming more and more obvious.The Chinese government has issued relevant policies and measures of low carbon emissions to achieve economic and environmental sustainable development,including carbon emissions trading mechanism which is an important system to reduce greenhouse gas emissions.There are a number of partly free carbon production caps' researches,but carbon allocation mechanism of fully paid allocation has not been studied.The existing research is mainly from the perspective of forward supply chain to study the investment strategy of carbon emission reduction,which is not from the perspective of remanufacturing supply chain.Remanufactured products are renovated by recycling the waste products in bulk make the lower cost and lower price.And remanufacturing supply chain system is not only conducive to low carbon emission reduction,carbon footprint reduction,in line with consumer environmental protection concept,but also help to improve enterprise profits.Therefore,our paper studies the price discrimination and emission reduction decisions of remanufacturing supply chain enterprises based on different initial carbon emission caps.It provides theoretical support for the development of remanufacturing supply chain industry about carbon emission reduction and the government's adjustment of carbon quota to encourage enterprises to reduce carbon emission.This study is done by the research clue,i.e.problem presentation,model formulation,model solution and example verification.The main work and innovation includes:1)The literatures on this paper are reviewed and summarized.And for the product concept and types of carbon footprint,the concepts and calculation methods of carbon emissions and carbon caps,remanufacturing and remanufacturing supply chain,product differential pricing,the concept of the game model and the three-part tariff contract are investigated,respectively.2)Based on the initial quota of carbon emissions is partial charges,we research the optimal pricing of new products and remanufactured products,the optimal profit of the manufacturer and retailer and the optimal carbon emission reduction.The related analysis reveals that there is the ‘double marginalization' effect under the decentralized decision-making case,so we dynamically adjust the three-part tariff contract to reduce carbon footprint,so as to achieve the purpose of Pareto optimization for social welfare.3)Based on the initial quota of carbon emissions are completely free and fully charges,respectively,we research the optimal pricing of new products and remanufactured products,the optimal profit of the manufacturer and retailer and the optimal carbon emission reduction and carbon trading cost.We dynamically adjust the three-part tariff contract to reduce carbon footprint,improve the utilization ratio of energy resources,reduce pollution,increase the overall profit of remanufacturing supply chain.4)We compare the optimal price of new products and remanufactured products,demand and remanufacturing supply chain optimal profit on completely free the initial carbon caps with partial charges,and fully charges the initial carbon caps with partial charges,respectively.5)The study reveals that,the government should encourage the manufacturer and retailer to reduce carbon emission from three factors: carbon caps,initial carbon footprint of new product and remanufactured product and carbon trading price.When the unit initial carbon footprint is lower than that of the industry benchmark,from the perspective of the carbon quota of completely free,partly and fully charged,this changes include the optimal pricing of new product and remanufactured product,the optimal recovery price and the optimal amount of recovery,the optimal demand for new product,the whole profit of the remanufacturing supply chain,and the optimal carbon emission reduction are as followed: high-low-higher,high-higher-low,low-high-higher,high-higher-low,low-high-higher.When the unit initial carbon footprint is higher than the sum of that of the industry benchmark and carbon emission reduction,from the perspective of the carbon quota of completely free,partly and fully charged,this changes are as followed: low-high-higher,high-low-higher,higher-high-low,higher-high-low,low-high-higher.It can be seen carbon emission right which are completely free,partly and fully charged,can promote corporate carbon emission reduction,reduce carbon footprint,effectively protect environment and ensure development.