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Study on Closed-Loop Supply Chain Strategy Based on Carbon Tax Policy and Reward-Penalty Mechanism

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Published:29 May 2020Publication History

ABSTRACT

Considering the environmental awareness of consumers, a Stackelberg game model is established for the closed-loop supply chain composed of manufacturer, retailer and third-party recycler. This paper analyzes three strategies of carbon tax policy (CTP), reward-penalty mechanism (RPM), carbon tax policy and reward-penalty mechanism (CTP and RPM) under decentralized decision. The results show that increasing consumers' awareness of environmental protection can improve price, demand and recovery rate of product under all three strategies. When there is a carbon tax policy, carbon emissions can be reduced. When there is a reward-penalty mechanism, it can improve the recovery rate of waste products and increase the profits of closed-loop supply chain members.

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    • Published in

      cover image ACM Other conferences
      MSIE '20: Proceedings of the 2020 2nd International Conference on Management Science and Industrial Engineering
      April 2020
      341 pages
      ISBN:9781450377065
      DOI:10.1145/3396743

      Copyright © 2020 ACM

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      Publication History

      • Published: 29 May 2020

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