Impact of government subsidy on the remanufacturing industry

Based on the multi-level optimization model of remanufacturing and pricing balance strategy research under TIFR subsidy in China

“…They enumerate some problems of remanufacture and offer corresponding solutions to government [22]. Qiao & Su study the impact of government subsidies on the remanufacturing activities of two kind manufacturers: OEM and independent remanufacturer (IR) [7]. However, the government subsidy is not the best way to increase economy and decrease environmental pollution.…”

“…However, for government subsidy, the capacity of remanufacturing industry and the prices of remanufacturing products will decrease with the increase of government subsidy. Besides that, the number of NPs may increase as the subsidy rises to meet the demand of collection of used products (UPs) [7]. The education level of consumers is a significant topic which is discussed recently.…”

“…Manufacturers or third-party recycling channels recycle UPs from consumers and give them equivalent items to stimulate their motivation, which is a common way to trade in the old for the new. Government TIFR subsidies and policies promote the development of remanufacturing industry, but different policies will bring different benefits to remanufacturer [7]. Therefore, optimal recovery decision is still a research object to be studied in different situations.…”

A Research on the Development of Remanufacturing Industry in the 14th Five-Year Plan Period

“…Considering that re-creates have special significance to environmental protection, the government tends to support the re-manufacture of re-manufacture through the form of re-manufacture of economic subsidies, so it is willing to pay for economic subsidies . The government gives subsidies after understanding the remanufacturing industry competitive market, which can improve the re-manufacture of profitability, the scale expansion of the incentive manufacturing industry, such initiatives can help environmental improvement [6]. The promulgation of specific regulations and policies should be combined with the market conditions of the remanufacturing target, coordinate the overall interests of the original manufacturer and the remanufacturer, and provide tax incentives for the original manufacturer that actively participates in the development of the remanufacturing industry, and awards for outstanding remanufacturers .…”

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“…Companies' technology innovation activities have positive externalities of improving resource efficiency and promoting economic development (Long and Summers, 1991;Yudi et al, 2019). However, technology innovation also has risks such as long investment return cycle and competitors' imitation (Staw and Dutton, 1981;McKinley et al, 2014), and government subsidies have always been an important means to compensate for such loss of technology spillover (Arrow, 1971;Kang and Park, 2012;Lim et al, 2017;Qiao and Su, 2020). As a pillar of China's strategic emerging industries, the renewable energy industry has been strongly supported by the government.…”