Abstract
Extended producer responsibility (EPR) system is an environmental protection strategy to recycle end-of-life products. A dynamic analysis model between the government and the reverse supply chain (RSC) system operated under the EPR instrument was established. Game theory was applied to analyze the optimal fiscal policy of the government and the optimal decision of the participating enterprises. It concludes that governments environmental regulation is effective to improve the manufacturers remanufacturing rate and the recyclers effort-extent.
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