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Do the subsidies help or hurt the remanufacturing closed‐loop supply chain?

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  • Bengang Gong
  • Chunming Victor Shi
  • Xiaodong Li
  • Jinshi Cheng

Abstract

This study investigates the impacts of the purchasing subsidy (PS) and the dismantling subsidy (DS) on a remanufacturing closed‐loop supply chain with a manufacturer and a dismantling firm. We propose two game models, one with the DS and the other without the DS. We find that an increased PS or DS may be unable to enhance the dismantling firm's efforts. The DS reduces the system profit in contrast to the scenario without the DS. Surprisingly, a simultaneous increase in the two subsidies exacerbates the environmental impacts of remanufacturing closed‐loop supply chain.

Suggested Citation

  • Bengang Gong & Chunming Victor Shi & Xiaodong Li & Jinshi Cheng, 2021. "Do the subsidies help or hurt the remanufacturing closed‐loop supply chain?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(4), pages 961-973, June.
    • Handle: RePEc:wly:mgtdec:v:42:y:2021:i:4:p:961-973
    DOI: 10.1002/mde.3285
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    Cited by:

    1. Yufei Hu & Lianghua Chen & Yingying Chi & Bowen Song, 2022. "Manufacturer encroachment on a closed‐loop supply chain with design for remanufacturing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1941-1959, September.
    2. Hongzhen Song & Jiantong Zhang & Junchang Li, 2022. "The impacts of subsidy strategies and recycling modes on the closed‐loop supply chain," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 4106-4123, December.
    3. Caiquan Duan & Fengmin Yao & Zhongqiu Li & Hui Yu, 2022. "Multi‐period closed‐loop supply chain network equilibrium considering CSR investment and sharing mechanism," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1579-1595, July.

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