Carbon Emission Reduction Decision And Remanufacturing Mode Selection In Closed-loop Supply Chain

In view of the global warming problem,countries around the world have taken measures to deal with it.In 2020,during the General debate of the Seventy-fifth session of the United Nations General Assembly,the President pledged to the world that China would "strive to peak carbon dioxide emissions by 2030 and strive to achieve carbon neutrality by 2060".As the world’s second largest economy,our country will go from "carbon peak" to "carbon neutral" in the shortest time in global history.Under the "double carbon" goal,carbon emission reduction is imperative for enterprises.Carbon tax is an internationally recognized effective economic means to promote carbon emission reduction,and remanufacturing is an important way to achieve low-carbon development.Carbon tax,carbon emission reduction and remanufacturing have attracted the attention of many scholars at home and abroad and achieved fruitful results.However,carbon emission reduction in closed-loop supply chain is rarely considered.The existing researches on carbon emission reduction of closed-loop supply chain are mainly based on the homogeneous demand of consumers,and most of them focus on the remanufacturing model of the original manufacturer.In reality,consumers have low acceptance of remanufactured products,while third-party remanufacturing,such as independent third-party remanufacturing,authorized remanufacturing and outsourced remanufacturing,is widespread.Therefore,this paper takes into account the carbon tax policy and the heterogeneous demand of consumers,combined with a variety of remanufacturing models,to conduct an in-depth and systematic study of closed-loop supply chain production pricing and carbon emission reduction decisions.Firstly,under the mode of the original manufacturer remanufacturing,a two-period game model between the manufacturer and the retailer is constructed to analyze the optimal decision-making of the closed-loop supply chain under the circumstances that the manufacturer does not reduce emissions,the manufacturer bears all the emission reduction costs and the retailer shares part of the emission reduction costs.The research shows that the manufacturer can choose three different remanufacturing strategies according to the carbon emission factor of remanufacturing: no remanufacturing,partial remanufacturing or full remanufacturing.In partial remanufacturing,if the acceptance of remanufactured products is high,carbon tax will promote remanufacturing.At full remanufacturing,a carbon tax would discourage remanufacturing.Regardless of partial remanufacturing or full remanufacturing,the manufacturer’s emission reduction will increase the manufacturer’s profit.The spillover effect of emission reduction will also increase the retailer’s profit.If the retailer shares part of the emission reduction cost,the emission reduction rate will increase,and the profits of both the manufacturer and the retailer will be higher than that of the case without emission reduction.Secondly,under the mode of independent third-party remanufacturing,a twoperiod game model between original manufacturer and third-party remanufacturer is constructed to explore the impact of carbon tax and emission reduction on production,pricing,profit and carbon emissions of closed-loop supply chain.The results show that the remanufacturer’s choice among no remanufacturing,partial remanufacturing or full remanufacturing is related to the carbon emission factor of remanufacturing.When partial remanufacturing is selected,if the acceptance of remanufactured products is high,carbon tax will promote remanufacturing.When full remanufacturing is chosen,the carbon tax will inhibit remanufacturing.Regardless of partial remanufacturing or full remanufacturing,the emission reduction of the original manufacturer will increase its own output and profit,while the profit of the remanufacturer will not necessarily increase,and the carbon emission will not necessarily decrease.When the carbon emission coefficient of remanufacturing meets certain conditions,the emission reduction of the original manufacturer can achieve win-win economic and environmental benefits of both sides.Thirdly,under the authorized remanufacturing mode,a single-period game model between the original manufacturer and the third-party remanufacturer is established to study the optimal production,pricing and emission reduction decisions of the closedloop supply chain under decentralized and centralized decision-making,respectively.Research shows that carbon tax reduces the output of new products and the profits of original manufacturer.When the acceptance of remanufacturing is high,or the carbon emission factor of remanufacturing is low,carbon tax will increase the profit of the remanufacturer.Emission reduction will increase the original manufacturer’s profit,but the remanufacturer’s profit will not necessarily increase.The total profit of closed-loop supply chain under centralized decision is higher than that under decentralized decision.When the conditions of carbon tax promoting remanufacturing are met,centralized decision has better environmental performance.The original manufacturer reduces the licensing fee and the remanufacturer shares part of the emission reduction cost,which can realize the coordination of the closed-loop supply chain.Fourthly,in the outsourced remanufacturing mode,a single-cycle game model between the original manufacturer and the third-party remanufacturer is constructed to study the optimal production pricing and carbon emission reduction decisions of the closed-loop supply chain under decentralized and centralized decision-making respectively.The results show that the output of new products and the profit of original manufacturer decrease with the increase of carbon tax,and the profit of remanufacturers increases with carbon tax when the acceptance of remanufactured products is high or the carbon emission coefficient of remanufacturing is low.The emission reduction of the original manufacturer will increase its own profit,but the carbon emission reduction will reduce the outsourcing cost of remanufacturing,and the profit of the remanufacturer will not necessarily increase.The total profit of the closed-loop supply chain increases under centralized decision-making,and the total carbon emission is lower under centralized decision-making when the conditions of carbon tax promoting remanufacturing are met.The coordination of closed-loop supply chain can be realized when the original manufacturer increases the outsourcing fee and the remanufacturer shares a certain proportion of the emission reduction cost.Finally,the three modes of original manufacturer remanufacturing,authorized remanufacturing and outsourced remanufacturing are compared.The results show that the remanufacturing conditions of the three modes are the same in partial remanufacturing.For full remanufacturing,the threshold for remanufacturing by the original manufacturer is the lowest and the threshold for authorized remanufacturing is the highest.For the original manufacturer,original manufacturer remanufacturing is always better than outsourcing,and better than licensing.For remanufacturers,if the acceptance of remanufactured products is low in partial remanufacturing,licensing is better than outsourcing.When it comes to full remanufacturing,licensing is always better than outsourcing.In the case of partial remanufacturing,if the acceptance of the remanufactured product is high or the carbon emission coefficient of the remanufacturing is low,the original manufacturer remanufacturing is best.In the case of full remanufacturing,the original manufacturer remanufacturing has the highest profit and the highest carbon emission,and the lowest carbon emission but the lowest profit in the authorized mode.