Green Production and Green Supply Chain Governance Under Extended Producer Responsibility

Abstract

Extended Producer Responsibility (EPR) is a strategy designed to promote the integration of environmental costs associated with goods throughout their life cycles into the market price of the products. In order to explore the decision mechanism green production and the governance mechanism of green supply chain under EPR, this chapter makes a theoretical overview about the main issues of EPR and supply chain governance firstly. Generally, under EPR, the government uses financial incentives to encourage manufacturers to design environmentally friendly products by holding producers responsible for the costs of managing their products at end of life. Therefore, the green production framework under EPR is put up from the product life cycle perspective. Next, a supply chain governance framework is proposed to launch green supply chain when EPR policy is enforced. Finally, future directions of green production and green supply chain governance are developed.