IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v141y2020ics1366554520306839.html
   My bibliography  Save this article

Quantity and collection decisions of the remanufacturing enterprise under both the take-back and carbon emission capacity regulations

Author

Listed:
  • Chen, Yuyu
  • Li, Bangyi
  • Zhang, Guoqing
  • Bai, Qingguo

Abstract

This study considers a monopolist remanufacturing enterprise under both mandatory carbon emission capacity and take-back regulations. We explore the optimal decisions of the remanufacturer and investigate the impacts of regulations on both the economy and environment. Using stylized models, we study four scenarios (i.e., with and without take-back and carbon emission capacity regulations). We first analyze how should the remanufacturer adjust operational decisions to maximize profit. We then explore both the economic and environmental implications of regulations. Our analysis reveals: (1) Carbon regulation is not only an effective way to reduce carbon emissions but can also stimulate remanufacturing. (2) For the enterprise, both take-back and carbon emission capacity regulations lead to lower profit, and we provide guidance for the enterprise to make production and pricing adjustments. (3) For the government, carbon cap is an effective measure to reduce the environmental impact; however, when setting the remanufacturing target, it is critical to evaluate the environmental impact during disposal phase.

Suggested Citation

  • Chen, Yuyu & Li, Bangyi & Zhang, Guoqing & Bai, Qingguo, 2020. "Quantity and collection decisions of the remanufacturing enterprise under both the take-back and carbon emission capacity regulations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    • Handle: RePEc:eee:transe:v:141:y:2020:i:c:s1366554520306839
    DOI: 10.1016/j.tre.2020.102032
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554520306839
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2020.102032?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zou, Zong-Bao & Wang, Jian-Jun & Deng, Gui-Shi & Chen, Haozhe, 2016. "Third-party remanufacturing mode selection: Outsourcing or authorization?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 1-19.
    2. Reimann, Marc & Xiong, Yu & Zhou, Yu, 2019. "Managing a closed-loop supply chain with process innovation for remanufacturing," European Journal of Operational Research, Elsevier, vol. 276(2), pages 510-518.
    3. He, Qidong & Wang, Nengmin & Yang, Zhen & He, Zhengwen & Jiang, Bin, 2019. "Competitive collection under channel inconvenience in closed-loop supply chain," European Journal of Operational Research, Elsevier, vol. 275(1), pages 155-166.
    4. Zheng, Xiao-Xue & Liu, Zhi & Li, Kevin W. & Huang, Jun & Chen, Ji, 2019. "Cooperative game approaches to coordinating a three-echelon closed-loop supply chain with fairness concerns," International Journal of Production Economics, Elsevier, vol. 212(C), pages 92-110.
    5. Biyu Liu & Martin Holmbom & Anders Segerstedt & Weida Chen, 2015. "Effects of carbon emission regulations on remanufacturing decisions with limited information of demand distribution," International Journal of Production Research, Taylor & Francis Journals, vol. 53(2), pages 532-548, January.
    6. Yenipazarli, Arda, 2016. "Managing new and remanufactured products to mitigate environmental damage under emissions regulation," European Journal of Operational Research, Elsevier, vol. 249(1), pages 117-130.
    7. Zheng, Xiao-Xue & Li, Deng-Feng & Liu, Zhi & Jia, Fu & Sheu, Jiuh-Biing, 2019. "Coordinating a closed-loop supply chain with fairness concerns through variable-weighted Shapley values," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 227-253.
    8. Schwanen, Tim, 2019. "Transport geography, climate change and space: opportunity for new thinking," Journal of Transport Geography, Elsevier, vol. 81(C).
    9. Gökçe Esenduran & Eda Kemahlıoğlu-Ziya & Jayashankar M. Swaminathan, 2017. "Impact of Take-Back Regulation on the Remanufacturing Industry," Production and Operations Management, Production and Operations Management Society, vol. 26(5), pages 924-944, May.
    10. Wang, Wenbin & Yang, Siqi & Xu, Lei & Yang, Xiaoli, 2019. "Carrot/stick mechanisms for collection responsibility sharing in multi-tier closed-loop supply chain management," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 366-387.
    11. Hong, Xianpei & Govindan, Kannan & Xu, Lei & Du, Peng, 2017. "Quantity and collection decisions in a closed-loop supply chain with technology licensing," European Journal of Operational Research, Elsevier, vol. 256(3), pages 820-829.
    12. Gökçe Esenduran & Atalay Atasu & Luk N. Van Wassenhove, 2019. "Valuable e-waste: Implications for extended producer responsibility," IISE Transactions, Taylor & Francis Journals, vol. 51(4), pages 382-396, April.
    13. Huang, Yanting & Wang, Zongjun, 2017. "Values of information sharing: A comparison of supplier-remanufacturing and manufacturer-remanufacturing scenarios," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 106(C), pages 20-44.
    14. Jeremy J. Kovach & Atalay Atasu & Sumitro Banerjee, 2018. "Salesforce Incentives and Remanufacturing," Production and Operations Management, Production and Operations Management Society, vol. 27(3), pages 516-530, March.
    15. Chang, Xiangyun & Xia, Haiyang & Zhu, Huiyun & Fan, Tijun & Zhao, Hongqing, 2015. "Production decisions in a hybrid manufacturing–remanufacturing system with carbon cap and trade mechanism," International Journal of Production Economics, Elsevier, vol. 162(C), pages 160-173.
    16. Chai, Qiangfei & Xiao, Zhongdong & Lai, Kee-hung & Zhou, Guanghui, 2018. "Can carbon cap and trade mechanism be beneficial for remanufacturing?," International Journal of Production Economics, Elsevier, vol. 203(C), pages 311-321.
    17. Qiu, Yuzhuo & Ni, Ming & Wang, Liang & Li, Qinqin & Fang, Xuanjing & Pardalos, Panos M., 2018. "Production routing problems with reverse logistics and remanufacturing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 87-100.
    18. S. Du & F. Ma & Z. Fu & L. Zhu & J. Zhang, 2015. "Game-theoretic analysis for an emission-dependent supply chain in a ‘cap-and-trade’ system," Annals of Operations Research, Springer, vol. 228(1), pages 135-149, May.
    19. Polotski, Vladimir & Kenne, Jean-Pierre & Gharbi, Ali, 2017. "Production and setup policy optimization for hybrid manufacturing–remanufacturing systems," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 322-333.
    20. Liu, Zhi & Li, Kevin W. & Li, Bang-Yi & Huang, Jun & Tang, Juan, 2019. "Impact of product-design strategies on the operations of a closed-loop supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 124(C), pages 75-91.
    21. Li, Xiaohong & Yang, Dong & Hu, Mengqi, 2018. "A scenario-based stochastic programming approach for the product configuration problem under uncertainties and carbon emission regulations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 115(C), pages 126-146.
    22. Choi, Tsan-Ming & Li, Yongjian & Xu, Lei, 2013. "Channel leadership, performance and coordination in closed loop supply chains," International Journal of Production Economics, Elsevier, vol. 146(1), pages 371-380.
    23. Dong, Ciwei & Liu, Qingyu & Shen, Bin, 2019. "To be or not to be green? Strategic investment for green product development in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 193-227.
    24. Shumail Mazahir & Vedat Verter & Tamer Boyaci & Luk N. Van Wassenhove, 2019. "Did Europe Move in the Right Direction on E‐waste Legislation?," Production and Operations Management, Production and Operations Management Society, vol. 28(1), pages 121-139, January.
    25. Panagiotidou, Sofia & Nenes, George & Zikopoulos, Christos & Tagaras, George, 2017. "Joint optimization of manufacturing/remanufacturing lot sizes under imperfect information on returns quality," European Journal of Operational Research, Elsevier, vol. 258(2), pages 537-551.
    26. De, Manoranjan & Giri, B.C., 2020. "Modelling a closed-loop supply chain with a heterogeneous fleet under carbon emission reduction policy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    27. Wu, Xiaole & Zhou, Yu, 2019. "Buyer-specific versus uniform pricing in a closed-loop supply chain with third-party remanufacturing," European Journal of Operational Research, Elsevier, vol. 273(2), pages 548-560.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Guangxia & Gong, Yeming & Hong, Xianpei, 2022. "Free rider effect of quality information disclosure in remanufacturing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 166(C).
    2. Yuan, Quan & Hua, Zhongsheng & Shen, Bin, 2021. "An automated system of emissions permit trading for transportation firms," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    3. Xiqiang Xia & Mengya Li & Biao Li & Hao Wang, 2021. "The Impact of Carbon Trade on Outsourcing Remanufacturing," IJERPH, MDPI, vol. 18(20), pages 1-18, October.
    4. Kuzey, Cemil & Fritz, Morgane M.C. & Uyar, Ali & Karaman, Abdullah S., 2022. "Board gender diversity, CSR strategy, and eco-friendly initiatives in the transportation and logistics sector," International Journal of Production Economics, Elsevier, vol. 247(C).
    5. Zhao, Senlin & You, Zhuangzhuang & Zhu, Qinghua, 2022. "Effects of asymmetric cost information on collection outsourcing of used products for remanufacturing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 162(C).
    6. Biao Li & Yong Geng & Xiqiang Xia & Dan Qiao & Hao Wang, 2021. "Comparatively Analyzing the Impact of Government Subsidy and Carbon Tax Policy on Authorized Remanufacturing," IJERPH, MDPI, vol. 18(16), pages 1-18, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Abraham & Wang, Jason X. & Farooque, Muhammad & Wang, Yulan & Choi, Tsan-Ming, 2021. "Multi-dimensional circular supply chain management: A comparative review of the state-of-the-art practices and research," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    2. Ehsan Shekarian & Simme Douwe Flapper, 2021. "Analyzing the Structure of Closed-Loop Supply Chains: A Game Theory Perspective," Sustainability, MDPI, vol. 13(3), pages 1-32, January.
    3. Qiao, Haike & Su, Qin, 2021. "Distribution channel and licensing strategy choice considering consumer online reviews in a closed-loop supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 151(C).
    4. He, Qidong & Wang, Nengmin & Browning, Tyson R. & Jiang, Bin, 2022. "Competitive collection with convenience-perceived customers," European Journal of Operational Research, Elsevier, vol. 303(1), pages 239-254.
    5. Zheng, Xiao-Xue & Li, Deng-Feng & Liu, Zhi & Jia, Fu & Sheu, Jiuh-Biing, 2019. "Coordinating a closed-loop supply chain with fairness concerns through variable-weighted Shapley values," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 227-253.
    6. Zhou, Yongyi & Zhang, Yulin & Wahab, M.I.M. & Goh, Mark, 2023. "Channel leadership and performance for a closed-loop supply chain considering competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    7. Liu, Zhi & Li, Kevin W. & Li, Bang-Yi & Huang, Jun & Tang, Juan, 2019. "Impact of product-design strategies on the operations of a closed-loop supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 124(C), pages 75-91.
    8. Liu, Chang-Yi & Wang, Hui & Tang, Juan & Chang, Ching-Ter & Liu, Zhi, 2021. "Optimal recovery model in a used batteries closed-loop supply chain considering uncertain residual capacity," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).
    9. Wang, Junbin & Zhang, Ting & Fan, Xiaojun, 2020. "Reverse channel design with a dominant retailer and upstream competition in emerging markets: Retailer- or manufacturer- collection?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 137(C).
    10. Yunting Feng & Yong Geng & Ge Zhao & Mengya Li, 2022. "Carbon Emission Constraint Policy in an OEM and Outsourcing Remanufacturer Supply Chain with Consumer Preferences," IJERPH, MDPI, vol. 19(8), pages 1-16, April.
    11. Weisheng Deng, 2019. "Does Remanufacturing Always Benefit the Manufacturer and Hurt the Supplier?," Sustainability, MDPI, vol. 11(6), pages 1-13, March.
    12. Yang, Lei & Hu, Yijuan & Huang, Lijuan, 2020. "Collecting mode selection in a remanufacturing supply chain under cap-and-trade regulation," European Journal of Operational Research, Elsevier, vol. 287(2), pages 480-496.
    13. Zhang, Yunrong & Hong, Zhaofu & Chen, Zhixiang & Glock, Christoph H., 2020. "Tax or subsidy? Design and selection of regulatory policies for remanufacturing," European Journal of Operational Research, Elsevier, vol. 287(3), pages 885-900.
    14. Zhang, Ranran & Ma, Weimin & Si, Hongyun & Liu, Jinjin & Liao, Le, 2021. "Cooperative game analysis of coordination mechanisms under fairness concerns of a green retailer," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    15. Li, Wei & Sun, Hui & Dong, Hao & Gan, Yuqin & Koh, Lenny, 2023. "Outsourcing decision-making in global remanufacturing supply chains: The impact of tax and tariff regulations," European Journal of Operational Research, Elsevier, vol. 304(3), pages 997-1010.
    16. Sarkar, Sumit & Bhala, Shrey, 2021. "Coordinating a closed loop supply chain with fairness concern by a constant wholesale price contract," European Journal of Operational Research, Elsevier, vol. 295(1), pages 140-156.
    17. Kumar, Patanjal & Baraiya, Rajendra & Das, Debashree & Jakhar, Suresh Kumar & Xu, Lei & Mangla, Sachin Kumar, 2021. "Social responsibility and cost-learning in dyadic supply chain coordination," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).
    18. Tong Shu & Qian Liu & Shou Chen & Shouyang Wang & Kin Keung Lai, 2018. "Pricing Decisions of CSR Closed-Loop Supply Chains with Carbon Emission Constraints," Sustainability, MDPI, vol. 10(12), pages 1-25, November.
    19. Yuyan Wang & Tingting Yu & Rui Zhou, 2022. "The Impact of Legal Recycling Constraints and Carbon Trading Mechanisms on Decision Making in Closed-Loop Supply Chain," IJERPH, MDPI, vol. 19(12), pages 1-26, June.
    20. Yang, Feng & Wang, Manman & Ang, Sheng, 2021. "Optimal remanufacturing decisions in supply chains considering consumers’ anticipated regret and power structures," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 148(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:141:y:2020:i:c:s1366554520306839. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.