A Study on Remanufacturing Supply Chain Decision-Making Considering Greenness Under Carbon Trading Policy

Zhentao Lin; Chengyu Zhang

doi:10.54097/kys7pa74

Authors

Zhentao Lin
Chengyu Zhang

DOI:

https://doi.org/10.54097/kys7pa74

Keywords:

Stackelberg game, Carbon trading, Remanufacturing, Greenness

Abstract

The aim of this paper is to study the impact of carbon trading system and product greenness on remanufacturing strategy, so a Stackelberg game model is constructed to consider a remanufacturing supply chain consisting of a manufacturer and a third-party remanufacturer under carbon trading policy. Through theoretical analysis and numerical simulation, the relationship between decision variables such as product greenness, price of new products and remanufactured products is analyzed. It is found that: the level of carbon emission reduction is conducive to increase the price of new products and remanufactured products; under certain conditions, a stronger green market demand is conducive to increase the greenness of the products and the profits and prices of the remanufacturing supply chain members; an increase in the investment in green technology will lead to a decrease in the manufacturer's profit and the greenness of the products, and even reduce the price of the products under certain conditions; and under certain conditions, the carbon trading price is effective in regulating the price of new products and the price of the products. Under certain conditions, the carbon trading price can effectively regulate the price of new products and remanufactured products, while the greenness of products will decrease with the increase of carbon trading price.

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