Remanufacturing Strategy Choice of a Closed-Loop Supply Chain Network Considering Carbon Emission Trading, Green Innovation, and Green Consumers

Abstract

Due to increasingly serious environmental pollution problems and governments' strengthening of environmental impact supervision, manufacturing companies are seeking green production methods, implementing carbon trading systems, and promoting the trend towards green remanufacturing. Thus, this paper introduces green factors to the existing closed-loop supply chain network models and studies the impact of carbon trading, green innovation efforts, and green consumers on the choice between two remanufacturing strategies: an in-house remanufacturing strategy and an authorized remanufacturing strategy. The results concerning the choice of the remanufacturing strategy are as follows: from the perspective of obtaining more profits, when the carbon trading price is low, the companies choose the authorized remanufacturing strategy; when the carbon trading price is high, the companies choose to remanufacture by themselves. For all the green innovation efforts and the proportions of green consumers, when the recovery rate of the used product is low, the companies choose to remanufacture by themselves; when the recovery rate of the used product is high, the companies choose the authorized remanufacturing strategy.

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