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The Carbon Subsidy Analysis in Remanufacturing Closed-Loop Supply Chain

Author

Listed:
  • Jian Li

    (School of Economics and Management, Beijing University of Chemical Technology, Beijing 100029, China)

  • Weihao Du

    (Li & Fung Limited, Beijing 101300, China)

  • Fengmei Yang

    (School of Science, Beijing University of Chemical Technology, Beijing 100029, China)

  • Guowei Hua

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

Abstract

Carbon subsidy is an important measure for the government to encourage enterprises to reduce carbon emission. This paper analyzes the impact of carbon subsidy on remanufacturing closed-loop supply chain (RCLSC). We explore the profits and the carbon emission quantities of three types of a supply chain: forward supply chain, remanufacturing closed-loop supply chain, and RCLSC with the carbon subsidy. This paper also discusses when and how the government implements the policy of carbon subsidy to encourage an enterprises’ behavior of cutting carbon emission from the view of RCLSC. We provide the close form of the conditions under which the government should implement the carbon subsidy strategy and the carbon subsidy of government could increase the profits of agents of the supply chain and deduce the carbon emission of the whole supply chain simultaneously. It is found that the government should implement the carbon subsidy strategy only when the recycling price is within a certain range, and the carbon subsidy of government should be within a reasonable range.

Suggested Citation

  • Jian Li & Weihao Du & Fengmei Yang & Guowei Hua, 2014. "The Carbon Subsidy Analysis in Remanufacturing Closed-Loop Supply Chain," Sustainability, MDPI, vol. 6(6), pages 1-17, June.
    • Handle: RePEc:gam:jsusta:v:6:y:2014:i:6:p:3861-3877:d:37111
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    References listed on IDEAS

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    Cited by:

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    2. Zhitao Xu & Adel Elomri & Shaligram Pokharel & Fatih Mutlu, 2019. "The Design of Green Supply Chains under Carbon Policies: A Literature Review of Quantitative Models," Sustainability, MDPI, vol. 11(11), pages 1-20, May.
    3. Sadok Turki & Stanislav Didukh & Christophe Sauvey & Nidhal Rezg, 2017. "Optimization and Analysis of a Manufacturing–Remanufacturing–Transport–Warehousing System within a Closed-Loop Supply Chain," Sustainability, MDPI, vol. 9(4), pages 1-20, April.
    4. Hongzhen Song & Jiantong Zhang & Junchang Li, 2022. "The impacts of subsidy strategies and recycling modes on the closed‐loop supply chain," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 4106-4123, December.
    5. Renbang Shan & Li Luo & Baoli Shi, 2023. "The choice of recycling strategies for decision-makers based on government subsidy and service budget," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(2), pages 1441-1472, February.
    6. Shan Yu & Qiang Hou & Jiayi Sun, 2020. "Investment Game Model Analysis of Emission-Reduction Technology Based on Cost Sharing and Coordination under Cost Subsidy Policy," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    7. Fangfang Zhang & Hao Wang & Xiaoyu Wu, 2021. "The Impact of Government Subsidies on Single-Channel Recycling Based on Recycling Propaganda," Energies, MDPI, vol. 14(23), pages 1-14, December.
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    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. Yan Chen & Zhuying Wang & Yan Liu & Zongchao Mou, 2023. "Coordination Analysis of the Recycling and Remanufacturing Closed-Loop Supply Chain Considering Consumers’ Low Carbon Preference and Government Subsidy," Sustainability, MDPI, vol. 15(3), pages 1-24, January.
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    18. 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.
    19. Zichun Deng & Mohd Rizaimy Shaharudin & Ming-Lang Tseng, 2023. "Decision-Making in a Closed-Loop Supply Chain under Fairness Concerns and Optimal Subsidies," Sustainability, MDPI, vol. 15(9), pages 1-31, April.
    20. Yang Lv & Xinhua Bi & Quanxi Li & Haowei Zhang, 2022. "Research on Closed-Loop Supply Chain Decision Making and Recycling Channel Selection under Carbon Allowance and Carbon Trading," Sustainability, MDPI, vol. 14(18), pages 1-17, September.
    21. 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.
    22. Qianwang Deng & Xiahui Liu & Haolan Liao, 2015. "Identifying Critical Factors in the Eco-Efficiency of Remanufacturing Based on the Fuzzy DEMATEL Method," Sustainability, MDPI, vol. 7(11), pages 1-21, November.

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