Research On Emission Reduction Decision-making And Coordination Of Closed-loop Supply Chain Under The Carbon Cap-and-trade Policy

Carbon cap-and-trade mechanism is indispensable in China’s implementation of emission reduction targets.In 2019,the Provisional Regulations on the Management of Carbon Emission Trading further standardized the trading rules of the carbon market.In 2020,General Secretary Xi Jinping proposed the goal of achieving carbon neutrality by 2060 at the UN General Assembly,and the issue of energy conservation and emission reduction is urgent.In addition to carbon trading,recycling and remanufacturing is also an important part of energy saving and emission reduction.In the "Made in China 2025",the Chinese government has clearly proposed to vigorously develop remanufacturing,and the remanufactured products market has ushered in development opportunities.People are increasing the awareness of environmental protection,more and more consumers are willing to pay higher prices for low-carbon products.Consumers’ preference for low carbon will encourage enterprises to reduce emissions and increase investment in emission reduction technology.The enterprise must pay attention to the low carbon emission reduction in the production operation.This paper takes the closed-loop supply chain composed of a single manufacturer,a single retailer and consumers as the research object,and studies the choice of manufacturers’ emission reduction strategies and coordinates when the three paths coexist.The three paths are as follow: emission reduction technology input,recycling and remanufacturing and carbon cap-and-trade.The paper establishes a game model in three cases: making emission reduction technology investment,recycling and remanufacturing,and making emission reduction technology investment and recycling and remanufacturing at the same time,with a demand function considering the differential pricing between new and remanufacturing product,consumers’ preference for low carbon and the degree of carbon emission reduction.The optimal decision and optimal result of three cases of centralized decision model and decentralized decision model are compared and analyzed.At last,the paper designs cost sharing contract mechanism to realize supply chain coordination.The paper analyzes the indicators that may influence the two parties’ decision and the optimal result through examples,such as the cost coefficient of emission reduction,the degree of carbon emission decreasing with remanufacturing,the low carbon value coefficient and unit of carbon emissions.The emission reduction cost coefficient has a negative impact on the wholesale price,retail price,market demand,unit emission reduction and profit of the supply chain members,while it has a positive impact on the total carbon emission.The effect of emission reduction cost factor on the market demand of new products is greater than that of remanufactured products.This research shows that: When the trading price of carbon quota is less than a certain critical value,it is positively correlated with emission reduction technology input,but if carbon quota trading price is too high,carbon trading mechanism will be invalid.When the degree of carbon emission decreasing with remanufacturing meets certain conditions,carbon cap-and-trade would encourage manufacturers to recycle and remanufacture,with the price of carbon trading increasing,manufacturers can only maximize their own profits by reducing the total output of the products.Under the same conditions,the manufacturer can make maximum profit by investing both in emission reduction technology and recycling and remanufacturing.However,in terms of carbon emissions,when the recovery price is higher than a certain value and the carbon trading price is lower than a certain value,the total amount of carbon emissions from both emission reduction technology input and recycling and remanufacturing are not the smallest.At last,the higher the carbon emission of a product,the demand for it will gradually decrease,and consumers will tend to choose alternative low-carbon products or remanufactured products with lower carbon emission.The unit carbon emission of a product has a small impact on the emission reduction of the product,but has a greater impact on the profits of the upstream and downstream members of the supply chain.Finally,the value range of the cost contract parameters is obtained,and it is proved that the contract can realize the closed-loop supply chain coordination.Enterprises should comprehensively consider the cost of emission reduction technology input,recycling and remanufacturing costs,and carbon transaction costs,adjust the proportion of investment in emission reduction and determine the optimal emission reduction strategy according to the market environment.The government should increase consumers’ low-carbon preference and recognition of remanufactured products by advertising,education.,and encourage enterprises to recycle and remanufacture production,then formulate a reasonable carbon quota policy to promote enterprises to reduce emissions and ensure the coordinated development of economic and environmental benefits.