Remanufacturing with trade-ins under carbon regulations

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Author(s)

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Detail(s)

Original languageEnglish
Pages (from-to)253-268
Journal / PublicationComputers & Operations Research
Volume89
Online published7 Apr 2016
Publication statusPublished - Jan 2018

Abstract

Observing prevalent concerns about the influence of carbon emissions on climate change, we address the problem of remanufacturing with trade-ins under carbon regulations. We analyze the optimal pricing and production decisions of the manufacturer under the carbon tax policy and the cap and trade program. The results show that the introduction of carbon regulations can promote sales of remanufactured products while reducing the demands of new products. However, the implementation of carbon regulations has negative impacts on the manufacturer's profits. Nevertheless, the manufacturer's profits can be improved through deliberately designed government subsidy schemes. We also demonstrate that the government has the incentive to propose such subsidy schemes because the total emissions can be reduced under well-designed regulations, but not at the cost of the manufacturer's profits.

Research Area(s)

  • Sustainability, Remanufacturing, Trade-in, Carbon tax, Cap and trade, Subsidy, GREENHOUSE-GAS EMISSIONS, PRODUCT, TAX, DESIGN, POLICY, CAP

Citation Format(s)

Remanufacturing with trade-ins under carbon regulations. / Miao, Zhaowei; Mao, Huiqiang; Fu, Ke et al.
In: Computers & Operations Research, Vol. 89, 01.2018, p. 253-268.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review