A Comparative Study of the Effect of Different Carbon-Reduction Policies on Outsourcing Remanufacturing
Abstract
:1. Introduction
- What are the influential mechanisms of carbon-emission-constraint and carbon-trade policies in remanufacturing?
- What is the impact of carbon emission constraint and carbon trade on production decisions, such as the unit retail price, sales volume, environment, etc.?
- How can the government formulate appropriate carbon-emission-reduction policies, and which policy is more conducive to remanufacturing?
2. Model Introduction
2.1. Problem Description
2.2. Model Symbol
2.3. Model Function
- (1)
- Model demand function:
- (2)
- Model recovery function:
2.4. Research Hypothesis
3. Model Analysis
3.1. Model Establishment
- (1)
- When the government does not adopt any policy, the income of OEM can be expressed in Equation (1), while the income of the remanufacturer can be expressed in (2):
- (2)
- When the government adopts the carbon-emission-constraint policy, the income of the OEM can be shown in Equation (3), while the income of the remanufacturer can be shown in (4):
- (3)
- When the government uses the carbon-trade policy, the revenues of the OEM and the remanufacturer are shown in Equations (5) and (6), separately:
3.2. Model Solution
3.3. Model Analysis
- (i)
- When
- (ii)
- When
- (i)
- When
- (ii)
- When
- (i)
- When
- (ii)
- when
- (i)
- The impact of the OEM on the environment when the government implements different policies:When
- (ii)
- The impact of the remanufacturer on the environment when the government implements different policies:When
- (iii)
- The total impact of the OEM and the remanufacturer on the environment when the government implements different policies:Set
4. Numerical Analysis
4.1. The Influence of Carbon Emission Constraint and Carbon Trade on the Unit Selling Price
4.2. The Influence of Carbon Emission Constraint and Carbon Trade on Sales Volume
4.3. The Influence of Carbon Emission Constraint and Carbon Trade Policies on the Unit Outsourcing Cost
5. Conclusions and Discussion
5.1. Conclusions
- (1)
- In the closed-loop supply chain that consists of the OEM and the remanufacturer, the implementation of the carbon-emission-constraint policy and carbon-trade policy by the government leads to an increase in the unit retail price of both remanufactured and new products, which is similar to [56]. Different from [56], this study further indicates how the cap on carbon emissions affects product prices under different policies. When the cap on carbon emissions is below a particular threshold, the retail price per unit of product is higher under the carbon-emission-constraint policy; otherwise, it is higher under the carbon-trade policy;
- (2)
- Similar to the literature [29,56], both policies result in a decrease in new products sales, but remanufactured products sales only decrease if the discount rate is lower than the proportional carbon emissions of the two products; otherwise, remanufactured products’ sales increase. In addition, new products sales are correlated with the upper limit of carbon emissions under the two policies. If the cap on carbon emissions is below a particular threshold, more new products are sold under the carbon-trade policy; otherwise, more are sold under the carbon-emission-constraint policy. However, compared with the results of the literature [29], the volume of remanufactured products sold under both policies is not only related to the carbon emissions cap but is also influenced by the ratio of carbon emissions and the discount rate;
- (3)
- In comparison with the existing literature, the OEM will change remanufactured products’ unit outsourcing costs as the government adopts different policies. Additionally, if the discount rate is above the carbon emissions ratio of both products and higher than a specific threshold, or if the discount rate is below the carbon emissions ratio of both products, the unit outsourcing cost would be higher under the carbon trading policy. At the same time, the outsourcing cost would be higher under the carbon-emission-constraint policy in other cases;
- (4)
- The two policies implemented by the government can reduce the environmental impact of manufacturing production as a whole. Compared to [14,56], this study also compared the magnitude of the environmental impact of the two policies. When the upper limit of carbon emissions is below a particular threshold, the influence of a carbon-emission-constraint policy on the environment is lower; otherwise, the environmental impact of a carbon-trade policy is lower. However, combined with Conclusion 2 and the positive correlation between sales volume and carbon emissions, it can be seen that remanufactured and new products are not always environmentally friendly under the carbon-emission-constraint policy and carbon-trade policy. This also suggests that when consumer environmental awareness is higher, the two policies effectively facilitate the production of remanufactured products and reduce the comprehensive influence of the two manufacturers’ production on the environment in the supply chain.
5.2. Discussion
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
Appendix A
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Symbol | Definition |
---|---|
The government is not taking any policy; | |
The government takes the carbon-emission-constraint policy; | |
The government takes the carbon-trade policy; | |
OEM, remanufacturer; | |
Number of sales for two kinds of products when the government takes policy ; | |
The unit retail price for two kinds of products when the government takes policy ; | |
Unit production cost for two kinds of products (from the real-world situation, it is known that ); | |
The government sets a carbon-emission limit for OEMs; (namely the carbon emissions cap); | |
Unit of carbon emissions’ trade price; | |
Carbon emissions per unit of the two kinds of products, also known as the environmental impact per unit of the two kinds of products (from the real-world situation, it is known that ); | |
The total carbon emissions of two kinds of products when the government takes policy , that is , ; | |
The total carbon emissions of two manufacturers when the government takes policy , it is also known as the total environmental influence of the production for both manufacturers. | |
The ratio of the volume of used products recycled by remanufacturers to the volume of new products sold, also known as the used product recycling rate (from the real-world situation, it is known that ); | |
The ratio of the retail price for each unit of remanufactured product to the retail price for each unit of the new product, which is the consumer preference for remanufactured products (from the real-world situation, it is known that ); | |
The outsourcing cost paid by the OEM to the remanufacturer when the production unit remanufactures the product; | |
When the government implements policy , the revenue that the OEM and the remanufacturer receive. |
Symbol | ||
---|---|---|
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Li, Q.; Wang, H.; Li, Z.; Yuan, S. A Comparative Study of the Effect of Different Carbon-Reduction Policies on Outsourcing Remanufacturing. Int. J. Environ. Res. Public Health 2022, 19, 3590. https://doi.org/10.3390/ijerph19063590
Li Q, Wang H, Li Z, Yuan S. A Comparative Study of the Effect of Different Carbon-Reduction Policies on Outsourcing Remanufacturing. International Journal of Environmental Research and Public Health. 2022; 19(6):3590. https://doi.org/10.3390/ijerph19063590
Chicago/Turabian StyleLi, Qiuyue, Hao Wang, Zhenshan Li, and Shangwei Yuan. 2022. "A Comparative Study of the Effect of Different Carbon-Reduction Policies on Outsourcing Remanufacturing" International Journal of Environmental Research and Public Health 19, no. 6: 3590. https://doi.org/10.3390/ijerph19063590
APA StyleLi, Q., Wang, H., Li, Z., & Yuan, S. (2022). A Comparative Study of the Effect of Different Carbon-Reduction Policies on Outsourcing Remanufacturing. International Journal of Environmental Research and Public Health, 19(6), 3590. https://doi.org/10.3390/ijerph19063590