Abstract
Remanufacturing, owing to its advantages in resource recycling and carbon emission reduction, has evolved into a critical strategy for accelerating the achievement of net-zero emission targets. With market opportunities driven by trade-in programs that encourage consumer participation in recycling and boost the intent to buy remanufactured products, it is imperative to determine which remanufacturing models can effectively balance emission reduction costs and economic benefits under carbon cap-and-trade regulation (CATR). To tackle this issue, considering a closed-loop supply chain (CLSC) under trade-in scenarios within CATR framework, this study tries to explore the pricing strategies for three remanufacturing modes (autonomous, authorization, and outsourcing remanufacturing mode) by formulating three Stackelberg game models, facilitating to discover the best selection strategy based on the comparison of optimal decisions and profits under these three modes. Research findings show that under autonomous and authorization remanufacturing mode, excessively high collection quality may lead to a decline in remanufactured product sales. However, within the outsourcing remanufacturing mode, improvements in collection quality can continuously increase the sales volume of remanufactured products. Notably, regardless of fluctuations in collection quality, carbon trading prices, and consumer acceptance of remanufactured products (CARP), the autonomous and outsourcing remanufacturing modes have consistently demonstrated superior performance compared to authorization remanufacturing mode for original equipment manufacturers (OEMs) and retailers. Furthermore, an increase in carbon trading price encourages OEMs to transition from outsourcing remanufacturing mode to autonomous remanufacturing mode.
NETL
NSTL
Elsevier