IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0287684.html
   My bibliography  Save this article

Optimal pricing and carbon emission reduction decisions for a prefabricated building closed-loop supply chain under a carbon cap-and-trade regulation and government subsidies

Author

Listed:
  • Xuefang Sun
  • Yuyang Wang
  • Yuanyuan Li
  • Wenjing Zhu
  • Dehuan Yan
  • Jiahui Li

Abstract

This paper explores a two-level prefabricated building closed-loop supply chain (CLSC) comprising a retailer and a prefabricated building manufacturer (PBM) under carbon cap-and-trade legislation and the government subsidies of carbon emission reduction (CER). In this CLSC, the PBM and the retailer recycle used products through their independent recycling channels. The optimum pricing and CER strategies within both decentralized and centralized systems, respectively, are analyzed. The Stackelberg game is used in the decentralized system to determine the optimum PBM’s CER level and the retailer’s pricing. By analysis, it concludes that increasing the carbon trading price can stimulate prefabricated construction corporations to improve their CER level, and that the government subsidy rate has a great effect on the profits of the PBM. Numerical examples with sensitivity analysis are used to further evaluate the roles of important factors in the optimum CER and pricing solutions of the prefabricated building CLSC in two dissimilar systems.

Suggested Citation

  • Xuefang Sun & Yuyang Wang & Yuanyuan Li & Wenjing Zhu & Dehuan Yan & Jiahui Li, 2023. "Optimal pricing and carbon emission reduction decisions for a prefabricated building closed-loop supply chain under a carbon cap-and-trade regulation and government subsidies," PLOS ONE, Public Library of Science, vol. 18(6), pages 1-19, June.
    • Handle: RePEc:plo:pone00:0287684
    DOI: 10.1371/journal.pone.0287684
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0287684
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0287684&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0287684?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
    ---><---

    References listed on IDEAS

    as
    1. Wen Jiang & Meng Yuan, 2022. "Coordination of Prefabricated Construction Supply Chain under Cap-and-Trade Policy Considering Consumer Environmental Awareness," Sustainability, MDPI, vol. 14(9), pages 1-22, May.
    2. Zhai, Yue & Zhong, Ray Y. & Huang, George Q., 2018. "Buffer space hedging and coordination in prefabricated construction supply chain management," International Journal of Production Economics, Elsevier, vol. 200(C), pages 192-206.
    3. Wen Jiang & Xian Qi, 2022. "Pricing and assembly rate decisions for a prefabricated construction supply chain under subsidy policies," PLOS ONE, Public Library of Science, vol. 17(1), pages 1-19, January.
    4. Qianqian Shi & Ziyu Wang & Boya Li & Marcel Hertogh & Shuyi Wang, 2022. "Evolutionary Analysis of Prefabrication Implementation in Construction Projects under Low-Carbon Policies," IJERPH, MDPI, vol. 19(19), pages 1-14, September.
    5. R. Canan Savaskan & Shantanu Bhattacharya & Luk N. Van Wassenhove, 2004. "Closed-Loop Supply Chain Models with Product Remanufacturing," Management Science, INFORMS, vol. 50(2), pages 239-252, February.
    6. Zhang, Jiekuan & Zhang, Yan, 2018. "Carbon tax, tourism CO2 emissions and economic welfare," Annals of Tourism Research, Elsevier, vol. 69(C), pages 18-30.
    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. Yangjun Ren & Qiong Chen & Yui-yip Lau & Maxim A Dulebenets & Mengchi Li & Botang Li & Mark Ching-Pong Poo & Pengfei Zhang, 2024. "An Improved Migratory Birds Optimization Algorithm for Closed- Loop Supply Chain Network Planning in a Fuzzy Environment," PLOS ONE, Public Library of Science, vol. 19(6), pages 1-31, June.

    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. Wen Jiang & Linqing Pu & Manqi Qiu & Lin Zhang, 2024. "Pricing, assembly rate optimizations and coordination for prefabricated construction supply chain with government subsidies," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    2. Peng Xing & Xiangru Zhao & Mingxing Wang, 2022. "The Optimal Combination between Recycling Channel and Logistics Service Outsourcing in a Closed-Loop Supply Chain Considering Consumers’ Environmental Awareness," Sustainability, MDPI, vol. 14(24), pages 1-25, December.
    3. Assarzadegan, Parisa & Rasti-Barzoki, Morteza, 2020. "A game theoretic approach for pricing under a return policy and a money back guarantee in a closed loop supply chain," International Journal of Production Economics, Elsevier, vol. 222(C).
    4. Deng Li & Ying Peng & Chunxiang Guo & Ruwen Tan, 2019. "Pricing Strategy of Construction and Demolition Waste Considering Retailer Fairness Concerns under a Governmental Regulation Environment," IJERPH, MDPI, vol. 16(20), pages 1-24, October.
    5. Liu, Wenjie & Liu, Wei & Shen, Ningning & Xu, Zhitao & Xie, Naiming & Chen, Jian & Zhou, Huiyu, 2022. "Pricing and collection decisions of a closed-loop supply chain with fuzzy demand," International Journal of Production Economics, Elsevier, vol. 245(C).
    6. Qingyuan Zhu & Chenghao Yu & Zhiyang SHEN & Malin Song, 2023. "Competition between a manufacturer and a relicensing third party when customers are strategic," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2021-2040, June.
    7. Ying Wu & Youwei Li, 2022. "Competition or Authorization—Manufacturers’ Choice of Remanufacturing Strategies," Sustainability, MDPI, vol. 14(19), pages 1-29, October.
    8. Bo Wang & Ning Wang, 2022. "Decision Models for a Dual-Recycling Channel Reverse Supply Chain with Consumer Strategic Behavior," Sustainability, MDPI, vol. 14(17), pages 1-18, August.
    9. Chung, Sung H. & Weaver, Robert D. & Friesz, Terry L., 2013. "Strategic response to pollution taxes in supply chain networks: Dynamic, spatial, and organizational dimensions," European Journal of Operational Research, Elsevier, vol. 231(2), pages 314-327.
    10. Ramani, Vinay & De Giovanni, Pietro, 2017. "A two-period model of product cannibalization in an atypical Closed-loop Supply Chain with endogenous returns: The case of DellReconnect," European Journal of Operational Research, Elsevier, vol. 262(3), pages 1009-1027.
    11. Rajabzadeh, Hamed & Rabiee, Meysam & Sarkis, Joseph, 2024. "Sourcing from risky reverse channels: Insights on pricing and resilience strategies in sustainable supply chains," International Journal of Production Economics, Elsevier, vol. 276(C).
    12. Huang, Min & Song, Min & Lee, Loo Hay & Ching, Wai Ki, 2013. "Analysis for strategy of closed-loop supply chain with dual recycling channel," International Journal of Production Economics, Elsevier, vol. 144(2), pages 510-520.
    13. Guojun Ji & Zhongfeng Sun & Kim Hua Tan, 2021. "Collaborative Rebate Strategy of Business-to-Customer Platforms Considering Recycling and Trade-Ins Simultaneously," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    14. 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.
    15. Choi, Tsan-Ming & Chow, Pui-Sze & Lee, Chang Hwan & Shen, Bin, 2018. "Used intimate apparel collection programs: A game-theoretic analytical study," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 109(C), pages 44-62.
    16. Rahman, Shams & Subramanian, Nachiappan, 2012. "Factors for implementing end-of-life computer recycling operations in reverse supply chains," International Journal of Production Economics, Elsevier, vol. 140(1), pages 239-248.
    17. Shizhen Bai & Ling Ge & Xuelian Zhang, 2022. "Platform or direct channel: government-subsidized recycling strategies for WEEE," Information Systems and e-Business Management, Springer, vol. 20(2), pages 347-369, June.
    18. De Giovanni, Pietro & Zaccour, Georges, 2014. "A two-period game of a closed-loop supply chain," European Journal of Operational Research, Elsevier, vol. 232(1), pages 22-40.
    19. Emad Sane-Zerang & Jafar Razmi & Ata Allah Taleizadeh, 2020. "Coordination in a closed-loop supply chain under asymmetric and symmetric information with sales effort-dependent demand," Journal of Business Economics, Springer, vol. 90(2), pages 303-334, March.
    20. Qiyao Liu & Xiaodong Zhu, 2024. "Incentive strategies for retired power battery closed-loop supply chain considering corporate social responsibility," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 19013-19050, July.

    More about this item

    Statistics

    Access and download statistics

    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:plo:pone00:0287684. 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: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    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.