Supply Chain Network Equilibrium Model Under The Environmental Regulations:the Product Eco-design Perspective

The problem of environmental pollution has brought great impact on our economy and ecosystem.Manufacturing industry,as the main source of polluting emissions,has faced many environmental pressures from governments,consumers,competitors and the public.At the product design stage,encouraging manufacturers to make eco-design decisions has become a key transformation way of manufacturing companies to energy-saving and consumption-reduction growth method,we can strengthen the green management throughout the product life cycle from the source and reduce resource consumption and negative impact on the environment throughout the product life cycle.However,product eco-design affects all phases of the product life cycle,including product R&D,raw material procurement,production,distribution,use,and recycling.It is no longer just an internal activity of a manufacturing company,it affects the economic and environmental decisions of various stakeholders inside and outside the supply chain network directly or indirectly.As the economic and environmental appeals of various stakeholders are different,there are multidimensional conflicts in the distribution of benefits,responsibility for environmental protection,and risk sharing and implementation process.And the various stakeholders'game behaviors under the multi-level supply chain structure are more complicated.Moreover,as a separate economy,each level of stakeholders pursues the maximization of individual profits,and often ignores the overall economic and environmental efficiency of the supply chain network,Which results in inadequate incentives for market forces to stimulate the product's eco-design activities.This requires the government to formulate environmental policies and measures to force companies to increase investment in environmental protection and develop envirornmentally friendly products.However,it will inevitably have a greater impact on the economic performance of various stakeholders.Therefore,It is an important issue that needs to be solved in the study of supply chain network equilibrium,Which based on the perspective of the supply chain network to analyze the game behaviors of stakeholders in all levels of supply chain under environmental regulation and discriminate their conflicts of interest in economic and environmental dimensions.Then we can build a complex supply chain network equilibrium model,and analyze the conduction path of the economic and environmental performance of product eco-design in the supply chain network under ernvironmental regulation,Based on the theory of supply chain management and product life cycle management,this article introduces two indicators named renewable utilization and energy saving to measure the environmental performance of products,and constructs cost,revenue and market demand functions based on the environmental performance of products.On this basis,a supply chain network equilibrium model based on product eco-design under environmental regulation was established,and we analyzed the equilibrium conditions of various stakeholders and obtained the equilibrium solution of the model using a modified projection dynamic system algorithm.Finally,we use a numerical simulation method to analyze the core enterprise's eco-design strategy and other stakeholders' operating strategies,and show the conduction path of environmental regulation incentives in the supply chain.The research results show that:stakeholders will transfer the R&D investments and production costs brought about by product eco-design in the supply chain network,and this will have complementary or alternative effects on the impact of different stakeholder decisions.Environmental regulations affect the economic and environmental performance of decision makers at all levels of the supply chain network,which changes the equilibrium of the supply chain network in turn.A suitable combination of environmental regulations can incentivize manufacturers to carry out product eco-design and improve the environmental performance of the entire supply chain network.Separate environmental regulations may lead to improvement of environmental issues in a certain area,but the overall environmental problems in the supply chain have not been fundamentally improved.Separate taxation may lead to the transfer of environmental pollution upstream and downstream of the supply chain,which causing deterioration of the environmental performance of the entire supply chain network.Compared with taxation,the subsidy policy can better guide companies to carry out product eco-design.If the market leader is a company with environmental cost disadvantage and its consumer awareness of environmental protection is weak,EPR tax and retail subsidy will cause further deterioration of envirornmental performance.Otherwise,setting higher standards for environmental protection may inhibit the enthusiasm of corporate environmental protection investment.