Pricing Decisions of CSR Closed-Loop Supply Chains with Carbon Emission Constraints
Tong Shu,
Qian Liu,
Shou Chen,
Shouyang Wang and
Kin Keung Lai
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Tong Shu: Business School, Hunan University, Changsha 410082, China
Qian Liu: Business School, Hunan University, Changsha 410082, China
Shou Chen: Business School, Hunan University, Changsha 410082, China
Shouyang Wang: Academy of Mathematics and System Science, Chinese Academy of Sciences, Beijing 100190, China
Kin Keung Lai: International Business School, Shaanxi Normal University, Xi’an 710062, China
Sustainability, 2018, vol. 10, issue 12, 1-25
Abstract:
Global warming has become a growing concern for countries around the world. Currently, the direct way to solve this issue is to curb carbon emissions. Governments and enterprises should assume the social responsibility to conserve the environment. Under the background of carbon emission constraint, this article investigates the optimal decisions of closed-loop supply chains in the context of social responsibility, explores the impacts of constraints of carbon emissions and corporate social responsibility on recycling and remanufacturing decisions, and introduces the model of maximizing social welfare for further comparison and analysis. The results show that the coefficient of remanufacturing and emission reduction and the coefficient of government reward and punishment are inversely proportional to recycling rates and the total carbon emissions. Governments should formulate rational carbon emission caps for enterprises with different coefficients of remanufacturing and emission reduction. Additionally, corporate social responsibility has a positive effect on recycling rates, and a rise in its strength can lead to a fall in carbon emissions per unit product. In terms of product recycling and profit sources, the model of maximizing social welfare is superior to that of maximizing the manufacturer’s total profits, which provides new managerial insights for decision-makers.
Keywords: closed-loop supply chains; carbon emissions; corporate social responsibility; social welfare (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:10:y:2018:i:12:p:4430-:d:185744
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