Research on an Enterprise Remanufacturing Strategy Based on Government Intervention

Jian Cao, Jiayun Zeng, Yuting Yan and Xihui Chen
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Jian Cao: School of Management, Zhejiang University of Technology, Hangzhou 310023, China
Jiayun Zeng: School of Management, Zhejiang University of Technology, Hangzhou 310023, China
Yuting Yan: School of Management, Zhejiang University of Technology, Hangzhou 310023, China
Xihui Chen: School of Management, Zhejiang University of Technology, Hangzhou 310023, China

Energies, 2020, vol. 13, issue 24, 1-27

Abstract: Due to rapid economic development and population growth, environmental pollution problems such as urban pollution and depletion of natural resources have become increasingly prominent. Municipal solid waste is part of these problems. However, waste is actually an improperly placed resource. As a part of green supply chain management, remanufacturing can turn waste products into remanufactured products for resale. Based on the development status of China’s remanufacturing industry, this paper establishes three Stackelberg game models, namely the free recycling model (model N), the government regulation model based on the reward–penalty mechanism (model G), and the government dual-intervention model (model GF). In this study, the standard solution method for the Stackelberg game method, namely the backward induction method, is applied to solve the dynamic game equilibrium. For comparison, a further numerical analysis is also carried. The research results show that: (1) in the closed-loop supply chain based on remanufacturing, the strengthening of cooperation between manufacturers and remanufacturers is beneficial in terms of maximizing supply chain profits; (2) in order to maximize social benefits, the government needs to intervene in green supply chain management; (3) government regulation is particularly important when the remanufacturing industry is in the initial stage of development; (4) government intervention needs to be based on the development level of the remanufacturing industry; (5) in order to maximize social benefits, it is recommended that the government consider the ratio between the green consumption subsidies and the taxes on new products.

Keywords: green supply chain management; remanufacturing; government intervention; extended producer responsibility (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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