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Impact of Carbon Tax and Subsidy Policies on Original Equipment Manufacturers and Remanufacturing Companies from the Perspective of Carbon Emissions

Author

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  • Shuiying Zhao

    (School of Mechanical and Electronic Engineering, Suzhou University, Suzhou 234000, China)

  • Yi Xu

    (Center for International Education, Philippine Christian University, Manila 1004, Philippines
    Business School, Suzhou University, Suzhou 234000, China)

  • Conghu Liu

    (School of Mechanical and Electronic Engineering, Suzhou University, Suzhou 234000, China
    Antai College of Economics & Management, Shanghai Jiao Tong University, Shanghai 200031, China)

  • Fangfang Wei

    (Antai College of Economics & Management, Shanghai Jiao Tong University, Shanghai 200031, China
    School of Economics and Management, Shanghai Polytechnic University, Shanghai 201209, China)

Abstract

To analyze the impact of government carbon tax and subsidy policies on the manufac turing industry in the context of carbon peaking and carbon neutrality. This paper constructs a game model based on two government policies: a “carbon tax” policy for the original product and a “subsidy” policy for the remanufactured product, taking the original product and the remanufactured product as the objects. The policy game model is used to study the impact of carbon taxes, government subsidies, and carbon emissions on product quality, sales, and corporate profits. The results show that under the carbon tax and government subsidy policies, the price of remanufactured products will decrease, the quality will increase, sales will improve, and remanufacturers’ profits will increase; these outcomes are conducive to the development of remanufacturing enterprises. Meanwhile, the price of original products will increase, quality will decrease, sales will decline, and original equipment manufacturers will have to develop and adopt low-carbon technologies to achieve sustainable development. This paper provides decision support for the formulation of government carbon emission policy, and theories and methods for the sustainable development of the manufacturing industry.

Suggested Citation

  • Shuiying Zhao & Yi Xu & Conghu Liu & Fangfang Wei, 2022. "Impact of Carbon Tax and Subsidy Policies on Original Equipment Manufacturers and Remanufacturing Companies from the Perspective of Carbon Emissions," IJERPH, MDPI, vol. 19(10), pages 1-16, May.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:10:p:6252-:d:820478
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    References listed on IDEAS

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    1. Mao, Huiying & Wang, Wenbin & Liu, Conghu & Xu, Yi & Zhao, Shuiying, 2023. "Effects of the carbon emission quota policy on the quality and sales of manufactured and remanufactured products," International Journal of Production Economics, Elsevier, vol. 266(C).

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