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Third-party remanufacturing modes with integrated tax-subsidy policy

Author

Listed:
  • Zhangwei Feng
  • Na Luo
  • Bisheng Du
  • Haorui Wang

Abstract

Tax-subsidy policy is a common government intervention mechanism to stimulate firms taking part in sustainable remanufacturing operations. Focusing on the third-party remanufacturing strategy (outsourcing or authorisation), this paper develops game models to study the trade-offs between manufactures and third-party remanufactures. Unlike the existing literature, we particularly include the feature of green consumers and the government intervention into the analytical model. The findings of this paper include: 1) manufactures choose authorisation when consumers show no green preferences; 2) third-party remanufactures need actions to improve green consumer preference for achieving high profit; 3) when unit carbon tax is high, manufacturers select authorisation; otherwise, outsourcing; 4) outsourcing strategy is beneficial to environmental sustainability and social welfare. [Submitted: 8 September 2021; Accepted: 17 July 2022]

Suggested Citation

  • Zhangwei Feng & Na Luo & Bisheng Du & Haorui Wang, 2023. "Third-party remanufacturing modes with integrated tax-subsidy policy," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 17(5), pages 740-765.
    • Handle: RePEc:ids:eujine:v:17:y:2023:i:5:p:740-765
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