Abstract
This paper develops a model of carbon emission reduction in a dual-channel closed-loop supply chain, which includes a manufacturer with capability of remanufacturing and a retailer. The model is based on the carbon trading system and customer's low-carbon preference. We research the carbon emission reduction level and remanufacturing under the ordinary dual-channel supply chain and a closed-loop dual-channel supply chain. The results show that the implementation of joint emission reduction strategy is beneficial to the manufacturer and retailer with the customer's preference, yet the emission reduction level is not changed. On the other hand, the remanufacturing strategy can increase the profits of firms and the total emissions under a reasonable rate of remanufacturing. If the rate is higher than a threshold, the profit and emission reduction level will decrease in the rate. The results can provide the administrators some insights to reduce emission and apply remanufacturing.
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