IDEAS home Printed from https://ideas.repec.org/a/kap/ecopln/v55y2022i4d10.1007_s10644-022-09394-4.html
   My bibliography  Save this article

Impact of environmental taxes on remanufacturing decisions of a duopoly

Author

Listed:
  • You Qiu

    (Central South University)

  • Youliang Jin

    (Central South University)

Abstract

Remanufacturing can exert positive economic and environmental effects, but factors such as competition and governmental regulations influence its development. In this paper, we investigated the impact of environmental taxes on manufacturers’ production decisions in three cases of a duopoly, in which remanufacturing was not conducted or conducted by one or two of the manufacturers. Based on game theory, the firm’s remanufacturing decision was discussed in cases when only one manufacturer was capable of remanufacturing and both were capable of remanufacturing. Analysis results showed that the benefits from the remanufacturing production cost and competition were the most critical trade-off components. We further analyzed how manufacturers’ decisions affected the environment. The environmental impact was measured by the total emissions, and relevant advice was provided to the regulator. Finally, assessments of numerical examples were performed using assumed values of the parameters to verify our results without loss of generality.

Suggested Citation

  • You Qiu & Youliang Jin, 2022. "Impact of environmental taxes on remanufacturing decisions of a duopoly," Economic Change and Restructuring, Springer, vol. 55(4), pages 2479-2498, November.
    • Handle: RePEc:kap:ecopln:v:55:y:2022:i:4:d:10.1007_s10644-022-09394-4
    DOI: 10.1007/s10644-022-09394-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10644-022-09394-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10644-022-09394-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bian, Junsong & Guo, Xiaolei & Li, Kevin W., 2018. "Decentralization or integration: Distribution channel selection under environmental taxation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 113(C), pages 170-193.
    2. Kaya, Onur, 2010. "Incentive and production decisions for remanufacturing operations," European Journal of Operational Research, Elsevier, vol. 201(2), pages 442-453, March.
    3. Wu, Cheng-Han, 2012. "Product-design and pricing strategies with remanufacturing," European Journal of Operational Research, Elsevier, vol. 222(2), pages 204-215.
    4. Gan, Shu-San & Pujawan, I. Nyoman & Suparno, & Widodo, Basuki, 2017. "Pricing decision for new and remanufactured product in a closed-loop supply chain with separate sales-channel," International Journal of Production Economics, Elsevier, vol. 190(C), pages 120-132.
    5. Atalay Atasu & Miklos Sarvary & Luk N. Van Wassenhove, 2008. "Remanufacturing as a Marketing Strategy," Management Science, INFORMS, vol. 54(10), pages 1731-1746, October.
    6. Chen, Cheng-Kang & Ulya, M. Akmalul ', 2019. "Analyses of the reward-penalty mechanism in green closed-loop supply chains with product remanufacturing," International Journal of Production Economics, Elsevier, vol. 210(C), pages 211-223.
    7. Zhe Wang & Yue Wang & Zhi Liu & Jinshi Cheng & Xintong Chen, 2021. "Strategic management of product recovery and its environmental impact," International Journal of Production Research, Taylor & Francis Journals, vol. 59(20), pages 6104-6124, October.
    8. Zhang, Yunrong & Hong, Zhaofu & Chen, Zhixiang & Glock, Christoph H., 2020. "Tax or subsidy? Design and selection of regulatory policies for remanufacturing," European Journal of Operational Research, Elsevier, vol. 287(3), pages 885-900.
    9. Álvaro Enríquez-de-Salamanca & Rosa M. Martín-Aranda & Ruben Diaz-Sierra, 2017. "Towards an Integrated Environmental Compensation Scheme in Spain: Linking Biodiversity and Carbon Offsets," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 19(02), pages 1-25, June.
    10. Biyu Liu & Martin Holmbom & Anders Segerstedt & Weida Chen, 2015. "Effects of carbon emission regulations on remanufacturing decisions with limited information of demand distribution," International Journal of Production Research, Taylor & Francis Journals, vol. 53(2), pages 532-548, January.
    11. Fleischmann, Mortiz & Krikke, Hans Ronald & Dekker, Rommert & Flapper, Simme Douwe P., 2000. "A characterisation of logistics networks for product recovery," Omega, Elsevier, vol. 28(6), pages 653-666, December.
    12. Liu, Zhuojun & Chen, Jing & Diallo, Claver, 2018. "Optimal production and pricing strategies for a remanufacturing firm," International Journal of Production Economics, Elsevier, vol. 204(C), pages 290-315.
    13. Yenipazarli, Arda, 2016. "Managing new and remanufactured products to mitigate environmental damage under emissions regulation," European Journal of Operational Research, Elsevier, vol. 249(1), pages 117-130.
    14. Kaiying Cao & Ping He & Zhixin Liu, 2020. "Production and pricing decisions in a dual-channel supply chain under remanufacturing subsidy policy and carbon tax policy," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 71(8), pages 1199-1215, August.
    15. Geraldo Ferrer & Jayashankar M. Swaminathan, 2006. "Managing New and Remanufactured Products," Management Science, INFORMS, vol. 52(1), pages 15-26, January.
    16. Mitra, Supriya & Webster, Scott, 2008. "Competition in remanufacturing and the effects of government subsidies," International Journal of Production Economics, Elsevier, vol. 111(2), pages 287-298, February.
    17. Laurens G. Debo & L. Beril Toktay & Luk N. Van Wassenhove, 2005. "Market Segmentation and Product Technology Selection for Remanufacturable Products," Management Science, INFORMS, vol. 51(8), pages 1193-1205, August.
    18. Chang, Xiangyun & Xia, Haiyang & Zhu, Huiyun & Fan, Tijun & Zhao, Hongqing, 2015. "Production decisions in a hybrid manufacturing–remanufacturing system with carbon cap and trade mechanism," International Journal of Production Economics, Elsevier, vol. 162(C), pages 160-173.
    19. Zhu, Xiaoxi & Wang, Miaomiao & Chen, Guofu & Chen, Xiaoshan, 2016. "The effect of implementing trade-in strategy on duopoly competition," European Journal of Operational Research, Elsevier, vol. 248(3), pages 856-868.
    20. Pazoki, Mostafa & Zaccour, Georges, 2019. "A mechanism to promote product recovery and environmental performance," European Journal of Operational Research, Elsevier, vol. 274(2), pages 601-614.
    21. Gökçe Esenduran & Eda Kemahlıoğlu-Ziya & Jayashankar M. Swaminathan, 2017. "Impact of Take-Back Regulation on the Remanufacturing Industry," Production and Operations Management, Production and Operations Management Society, vol. 26(5), pages 924-944, May.
    22. Zhang, Y & Hong, Z & Chen, Z & Glock, C. H., 2020. "Tax or subsidy? Design and selection of regulatory policies for remanufacturing," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 122326, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    23. Ullah, Mehran & Sarkar, Biswajit, 2020. "Recovery-channel selection in a hybrid manufacturing-remanufacturing production model with RFID and product quality," International Journal of Production Economics, Elsevier, vol. 219(C), pages 360-374.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alegoz, Mehmet & Karaer, Özgen, 2024. "Compound effect of closing the loop and servitization in supply chains," International Journal of Production Economics, Elsevier, vol. 270(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Yunrong & Hong, Zhaofu & Chen, Zhixiang & Glock, Christoph H., 2020. "Tax or subsidy? Design and selection of regulatory policies for remanufacturing," European Journal of Operational Research, Elsevier, vol. 287(3), pages 885-900.
    2. De, Arijit & Ray, Ankita & Kundu, Tanmoy & Sheu, Jiuh-Biing, 2023. "Is it wise to compete or to collaborate? Remanufacturing business models under collective extended producer responsibility legislation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    3. Ehsan Shekarian & Simme Douwe Flapper, 2021. "Analyzing the Structure of Closed-Loop Supply Chains: A Game Theory Perspective," Sustainability, MDPI, vol. 13(3), pages 1-32, January.
    4. Ma, Peng & Gong, Yeming & Mirchandani, Prakash, 2020. "Trade-in for remanufactured products: Pricing with double reference effects," International Journal of Production Economics, Elsevier, vol. 230(C).
    5. Yuyu Chen & Bangyi Li & Qingguo Bai & Zhi Liu, 2018. "Decision-Making and Environmental Implications under Cap-and-Trade and Take-Back Regulations," IJERPH, MDPI, vol. 15(4), pages 1-25, April.
    6. Yenipazarli, Arda, 2016. "Managing new and remanufactured products to mitigate environmental damage under emissions regulation," European Journal of Operational Research, Elsevier, vol. 249(1), pages 117-130.
    7. Xiong, Yu & Zhou, Yu & Li, Gendao & Chan, Hing-Kai & Xiong, Zhongkai, 2013. "Don’t forget your supplier when remanufacturing," European Journal of Operational Research, Elsevier, vol. 230(1), pages 15-25.
    8. Yunting Feng & Yong Geng & Ge Zhao & Mengya Li, 2022. "Carbon Emission Constraint Policy in an OEM and Outsourcing Remanufacturer Supply Chain with Consumer Preferences," IJERPH, MDPI, vol. 19(8), pages 1-16, April.
    9. Lijun Meng & Qiang Qiang & Zuqing Huang & Baoyou Zhang & Yuxiang Yang, 2020. "Optimal Pricing Strategy and Government Consumption Subsidy Policy in Closed-Loop Supply Chain with Third-Party Remanufacturer," Sustainability, MDPI, vol. 12(6), pages 1-29, March.
    10. Zheng, Xiong & Govindan, Kannan & Deng, Qianzhou & Feng, Lipan, 2019. "Effects of design for the environment on firms’ production and remanufacturing strategies," International Journal of Production Economics, Elsevier, vol. 213(C), pages 217-228.
    11. Luo, Li & Shan, Renbang & Xiang, Jie, 2024. "The government intervention effectiveness in promoting remanufacturing: Subsidy or remanufacturing target?," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    12. Biao Li & Yong Geng & Xiqiang Xia & Dan Qiao & Hao Wang, 2021. "Comparatively Analyzing the Impact of Government Subsidy and Carbon Tax Policy on Authorized Remanufacturing," IJERPH, MDPI, vol. 18(16), pages 1-18, August.
    13. Dexiang Yang & Qin Yang & Lei Zhang, 2023. "Operational Decisions on Remanufacturing under the Product Innovation Race," Sustainability, MDPI, vol. 15(6), pages 1-18, March.
    14. Liu, Zhi & Li, Kevin W. & Tang, Juan & Gong, Bengang & Huang, Jun, 2021. "Optimal operations of a closed-loop supply chain under a dual regulation," International Journal of Production Economics, Elsevier, vol. 233(C).
    15. Xiaohua Han & Ying Shen & Yiwen Bian, 2020. "Optimal recovery strategy of manufacturers: Remanufacturing products or recycling materials?," Annals of Operations Research, Springer, vol. 290(1), pages 463-489, July.
    16. Pazoki, Mostafa & Zaccour, Georges, 2019. "A mechanism to promote product recovery and environmental performance," European Journal of Operational Research, Elsevier, vol. 274(2), pages 601-614.
    17. Wu, Cheng-Han, 2015. "Strategic and operational decisions under sales competition and collection competition for end-of-use products in remanufacturing," International Journal of Production Economics, Elsevier, vol. 169(C), pages 11-20.
    18. Huang, Yanting & Wang, Zongjun, 2017. "Values of information sharing: A comparison of supplier-remanufacturing and manufacturer-remanufacturing scenarios," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 106(C), pages 20-44.
    19. Lu Xiao & Rongrong Fan & Chaojie Wang & Jun Wang, 2020. "Policy Analyses on Promoting the Recycling of Express Packages," Sustainability, MDPI, vol. 12(22), pages 1-12, November.
    20. Bulmus, Serra Caner & Zhu, Stuart X. & Teunter, Ruud, 2014. "Competition for cores in remanufacturing," European Journal of Operational Research, Elsevier, vol. 233(1), pages 105-113.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:ecopln:v:55:y:2022:i:4:d:10.1007_s10644-022-09394-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.