Research On Closed-loop Supply Chain Decision Considering Carbon Emission Under The Government Regulation

At present,the unsustainable problem of China’s economic and social development is still prominent,more and more abandoned products are not properly handled and people discard them arbitrarily.The accumulation of these used products over years has caused negative impact,which are unable to estimate,to the natural environment and people’s health.This issue needs to be resolved by remanufacturing,but China’s remanufacturing industry is still in its initial stage.The recovery mode as well as the relevant laws and regulations are imperfect,the government subsidies and support policies are not comprehensive.The willingness of enterprises to recycle and remanufacture is not strong enough.The recycling and remanufacturing business of many regular enterprises is difficult to carry out.These increasingly prominent problems urgently need for ongoing in-depth theoretical and practical research on the enterprise’s recycling and remanufacturing decision-making as well as government subsidies.At the same time,with the rapid development of the global economy and the accelerating process of industrialization in many countries,the greenhouse gas emissions continue to increase,which causes a series of environmental problems such as global warming.As the world’s largest carbon emission country,China is the focus of international community and the public.They are deeply concerned about the progress of China’s low-carbon emission reduction work.However,as the main body of China’s carbon emissions,companies may not have the incentive to reduce emissions,or there is no strong willingness to reduce emissions.Some companies even resist the emission reduction policies.The policies,laws and regulations on low-carbon emission reduction are not mature enough.The increasingly severe climate and environment issues show that the research on carbon emission reduction decision-making and government-related policy can not be delayed.Based on above background,this paper will introduce remanufacturing and carbon reduction into the supply chain research at the same time.The main contents of this paper are as follows:(1)Under the government’s carbon tax policy,we construct a closed-loop supply chain considering retailer competition.The social welfare function is used as the objective function of government’s decision-making.We get the government’s optimal carbon tax rate.Then we analyze the impact of consumer’s low carbon product preference and government’s carbon tax policy on supply chain decision-making and social welfare impact.We also get the correlations between carbon tax rate and other variables.(2)Under the government’s carbon tax policy,we construct a closed-loop supply chain considering product differentiation.The results show that the carbon tax is actually a transfer between the supply chain members.The optimal retail price and the optimal wholesale price are positively related to the carbon tax rate,and the market demand is negatively correlated with the carbon tax rate.The carbon tax rate is positively related to the consumer ’s environmental awareness.(3)Consider the manufacturer invest to reduce carbon emission in closed-loop supply chain under the government’s cab-and-trade policy,we compare the difference after the manufacturer make an emissions reduction investment,and we also compare the optimal decisions of the supply chain under different government subsidy policies.It is found that the profit and product demand of the manufacturer who engages in carbon emission reduction activities are improved,and the decision variables and the profits of other members in the supply chain are also effectively improved.Government subsidies can improve the efficiency of supply chain.Through the price mechanism,collector and manufacturer can be coordinated under government subsidies.