Tax or subsidy? Design and selection of regulatory policies for remanufacturing

Zhang, Yunrong; Hong, Zhu; Chen, Zhixiang; Glock, C. H.

doi:10.1016/j.ejor.2020.05.023

Cited by 104 publications

(63 citation statements)

References 49 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Furthermore,the symbols used in the government incentive regulation model are shown as follows(Table 1): Then, we make the following assumptions: Assumption 2.1 This research consider the moral hazard and adverse selection. According to the studies of [37,40], we assume the recovery rate of the recycler is the private information, which the government cannot be observed and it can be improved by the effort such as updating the recycling equipment and increasing the in vestments in R&D of recycling technology, and the effort cost is φ(ε). Therefore, the recovery rate of the recycler with effort is shown as:…”

Section: Problem Descriptionmentioning

confidence: 99%

“…The quality of the new products produced with new materials and recycled materials is identical and all the remanufactured products can be sold to the consumers [4,40] .…”

Section: Assumption 24mentioning

confidence: 99%

“…In this section, we provide a numerical example to explain and verify the above theoretical results. Due to it is difficult to obtain the real industry data, thus we apply the data set included in previous studies [37,39,40].Where the relevant parameters of a home appliance product are shown in Table 2. In addition, the data settings conform to the assumptions of the model and follow the reasonable relationship between the parameters(e.g.…”

Section: Numerical Example Analysismentioning

confidence: 99%

“…They found that the government's reward and punishment policies play an active role in improving the production process and recovery level of the manufacturer. Then, [40] investigated how the government develops an incentive measure to promote the power plant to reduce the carbon emissions effectively by establishing the government incentive regulation model. [34] proposed a lowcarbon incentive model for online shopping supply chain based on the online stores and their suppliers.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

To be raised up or kicked out? Insights for the recycler in closed-loop supply chain with the regulation of government

2021

RAIRO-Oper. Res.

View full text Add to dashboard Cite

In order to improve the recovery rate of waste products and maximize the social welfare, this paper investigates the problem of government setting a recovery rate threshold for the recycler in the closed-loop supply chain (CLSC) with the information asymmetry. By establishing the government incentive regulation model, the government can disclose the true recovery cost of the recycler and guide the recycler to make an reasonable effort. In this study, our model obtains the best recovery rate threshold for the recycler from the perspective of maximizing social welfare. Then, we conduct some sensitivity analyses and explore the impacts of related factors on the strategies-making of government and supply chain players. The results of the study indicates that the recovery rate threshold set not only depends on the operation efficiency of the recycler, it also affected by the consumers behavior and the production efficiency of manufacturer. The government should not pursue a high recovery rate blindly, more attention should be paid to control the cost of effort made by the recycler. With the increasing of the negative utility for the recycler to make effort, the government will improve the recovery threshold, otherwise, the threshold will decrease. The results facilitate scientific incentive mechanism development, and provide a reference for promoting CLSC operations.

show abstract

Section: Problem Descriptionmentioning

confidence: 99%

“…The quality of the new products produced with new materials and recycled materials is identical and all the remanufactured products can be sold to the consumers [4,40] .…”

Section: Assumption 24mentioning

confidence: 99%

Section: Numerical Example Analysismentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

To be raised up or kicked out? Insights for the recycler in closed-loop supply chain with the regulation of government

2021

RAIRO-Oper. Res.

View full text Add to dashboard Cite

show abstract

“…The US government announced that 20–30% of the cost of equipment for companies producing low-carbon products could be used for tax deductions, and relevant low-carbon companies and individuals could also enjoy tax reductions ranging from 10% to 40%. In 17 counties in Tennessee and one county in Kentucky, the annual county-level cost of using tax-based subsidies to provide forest carbon sequestration is between $15.56 and $563.58 per carbon ton, and this method effectively reduces the risk of deforestation and is conducive to carbon reduction [ 44 ]. The Chinese government formulated the Interim Measures for the Administration of Low-Carbon Products Certification in 2013.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Government Subsidies on the Low-Carbon Supply Chain Based on Carbon Emission Reduction Level

Geng

Xia

et al. 2021

IJERPH

View full text Add to dashboard Cite

To improve low-carbon technology, the government has shifted its strategy from subsidizing low-carbon products (LCP) to low-carbon technology. To analyze the impact of government subsidies based on carbon emission reduction levels on different entities in the low-carbon supply chain (LCSC), game theory is used to model the provision of government subsidies to low-carbon enterprises and retailers. The main findings of the paper are that a government subsidy strategy based on carbon emission reduction levels can effectively drive low-carbon enterprises to further reduce the carbon emissions. The government’s choice of subsidy has the same effect on the LCP retail price per unit, the sales volume, and the revenue of low-carbon products per unit. When the government subsidizes the retailer, the low-carbon product wholesale price per unit is the highest. That is, low-carbon enterprises use up part of the government subsidies by increasing the wholesale price of low-carbon products. The retail price of low-carbon products per unit is lower than the retail price of low-carbon products in the context of decentralized decision making, but the sales volume and revenue of low-carbon products are greater in the centralized decision-making. The cost–benefit-sharing contract could enable the decentralized decision model to achieve the same level of profit as the centralized decision model.

show abstract

Evaluation of research and development subsidies and fossil energy tax for sustainable development using computable general equilibrium model

Moosavian

Borzuei

Zahedi

et al. 2022

Energy Science & Engineering

View full text Add to dashboard Cite

Policy‐making in improving the quality of the environment and social welfare and increasing the rate of economic growth to achieve sustainable development has been considered by policymakers in recent years. Punitive policies such as taxes on fossil energy consumption and incentive policies such as subsidies for investment in research and development are among the policies used to achieve sustainable development goals. In this study, using a computable general equilibrium model, two scenarios of subsidy to investment in research and development and subsidy with the taxation of fossil fuels, to double the ratio of investment in research and development GDP have been considered. First, the subsidy rate required to invest in research and development to achieve this goal is determined, and then, the economic, welfare, and environmental effects of the policies implemented are examined. This study shows that in the first scenario, the subsidy rate required to invest in research and development to achieve this goal is 10.74% and in the second scenario is 10.21%. Meanwhile, the required tax rate in the second scenario is estimated at 2.5% of fossil energy consumption. The results show that both the fossil energy tax policy and the research and development subsidy policy are able to reduce energy consumption, air pollution, and social welfare. The reduction in welfare in both scenarios is regardless of the social benefits of reducing greenhouse gas emissions.

show abstract

Tax or subsidy? Design and selection of regulatory policies for remanufacturing

Cited by 104 publications

References 49 publications

To be raised up or kicked out? Insights for the recycler in closed-loop supply chain with the regulation of government

To be raised up or kicked out? Insights for the recycler in closed-loop supply chain with the regulation of government

The Impact of Government Subsidies on the Low-Carbon Supply Chain Based on Carbon Emission Reduction Level

Evaluation of research and development subsidies and fossil energy tax for sustainable development using computable general equilibrium model

Contact Info

Product

Resources

About