Comparative study on the impact of carbon emission reduction policies on authorized remanufacturing

The government adopts a series of carbon emission reduction policies such as carbon tax, carbon restraint and carbon trading to promote the realization of low-carbon transformation of enterprises in order to implement the “dual carbon” goal and promote the development of low-carbon industries. Remanufacturing provides an effective way for enterprises to reduce carbon emission. Under the protection of intellectual property rights, the authorized remanufacturing mode becomes an effective way for the original equipment manufacturer (OEM) to obtain the benefits and cope with the competitive impact of the remanufacturing market. To analyze the impact of government carbon emission reduction policies on the authorized remanufacturing supply chain, construct and comparatively analyze the OEM and remanufacturers under no carbon emission reduction policies, carbon tax policies, carbon restraint policies and carbon trading policies game model. The main results are as follows: 1) Under the three carbon emission reduction policies, the unit carbon tax, carbon emission cap and the carbon trading price are the important factors that affect the production and pricing decisions of the two product manufacturers, and the OEM could increase profits by reducing the unit authorization fee of remanufactured products. However, the three carbon emission reduction policies are not always beneficial to remanufacturers; 2) The government’s implementation of carbon tax policy with high tax rate, carbon restriction policy with low quota or carbon trading policy with high carbon trading price can create a better survival environment for remanufacturers, and the sales volume of remanufactured products is also affected by the ratio of consumer preference to the carbon emissions of the two products; 3) The government’s implementation of three carbon emission reduction policies can reduce the total environmental impact on the supply chain. When the unit amount of carbon tax is relatively small in comparison with the carbon trading price, the carbon trading policy plays an irreplaceable role to protect the environment, and achieve a win-win consequence for both manufacturers. © 2023 Systems Engineering Society of China. All rights reserved.