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

Yan Zhou, Xin-Tong Lin, Zhi-Ping Fan and Kar-Hung Wong
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Yan Zhou: Department of Management Science and Engineering, Qingdao University, Qingdao 266071, China
Xin-Tong Lin: Department of Management Science and Engineering, Qingdao University, Qingdao 266071, China
Zhi-Ping Fan: School of Business Administration, Northeastern University, Shenyang 110169, China
Kar-Hung Wong: School of Computer Science and Applied Mathematics, University of the Witwatersrand, Johannesburg 2000, South Africa

IJERPH, 2022, vol. 19, issue 11, 1-42

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.

Keywords: closed-loop supply chain; remanufacturing strategy choice; carbon emission trading; green innovation; green consumers; circular economy (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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