Abstract
Authorized remanufacturing is an important means to achieve green manufacturing and carbon neutrality. In this study, a game theory model between a manufacturer and a remanufacturer was constructed to analyze the impact of government subsidies and carbon tax policies on authorized remanufacturing. Based on the game theory model, the effects of two government policies on the optimal solution, namely, the unit cost of remanufacturing product authorization and the waste product recovery rate, were compared and analyzed. This analysis could provide a reference for the government to improve and formulate relevant remanufacturing policies. The main results are as follows: government subsidy policies may increase the unit cost of remanufacturing product authorization and the rates of waste product recovery; government carbon tax policies may not affect the unit cost of remanufacturing product authorization, and increase the rates of waste product recovery; the government subsidy policy may not affect the unit retail price of new products, and reduces the unit retail price of remanufactured products; the government subsidy and carbon tax policies may reduce sales of new products and increase sales of remanufactured products; the government subsidies may increase the revenue of the original equipment manufacturer (OEM) and the remanufacturer; and the government carbon tax policies may increase the revenue of the remanufacturer. However, government carbon tax policies increase the revenue of the OEM only when the new product carbon tax amount is higher than a certain threshold. The impact of the two policies on the environment is related to the ratio of the two products’ impact on the environment, i.e., the quota ratio between the unit government carbon tax of the new product and the unit government subsidy of the remanufactured product. Finally, the consumer surplus is maximized when the government adopts the subsidy policy and lowest when the government adopts the carbon tax policy.
Highlights
Reaching peak carbon emissions and carbon neutrality, and actively realizing a lowcarbon economy, have become shared goals of all countries [1,2,3]
One is increasing the unit price of new products to transfer the tax to consumers; another is increasing the unit authorization fee of remanufactured products to increase the total revenue from authorization
In contrast to [29], when the government charges a carbon tax on the new products, the sales volume of new products in the first period decreases, whereas that of remanufactured products increases, in such a manner to stimulate an increase in the collection rate
Summary
Reaching peak carbon emissions and carbon neutrality, and actively realizing a lowcarbon economy, have become shared goals of all countries [1,2,3]. With the improvements in the outsourcing and intellectual property systems, in addition to the realization of the international goals of carbon peaking and carbon neutrality, the proportion of remanufactured products, authorized remanufactured products, will further increase in the future This development will be important for green manufacturing and carbon emission reduction. Policy measures are focused on increasing carbon taxes and implementing carbon emission reduction subsidies These two government policies have different effects on the development of the remanufacturing industry. Based on the game theory model, the effects of the two government policies on the optimal solution, such as the unit cost of remanufacturing product authorization and the waste product recovery rate, are compared and analyzed.
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