Remanufacturing and low-carbon investment strategies in a closed-loop supply chain under multiple carbon policies

Closed-loop supply chain is an important path to realize the sustainable development of supply chain, and cap-and-trade and carbon tax policies further promote closed-loop supply chain to invest in low-carbon technologies. This paper combines Economic Production Quantity with Economic Order Quantity models and designs multiple carbon policies. Abatement rate and collection rate are the key variables used to explore the mechanism of the interaction between carbon tax and cap-and-trade, inventory dynamics of closed-loop supply chain and impact of multiple carbon policies on closed-loop supply chain. Construct and analyze benchmark model, investment model under multiple carbon policies, remanufacturing model under multiple carbon policies and mixed strategies model under multiple carbon policies, and the results show that there is a non-linear complementary relationship between carbon price and carbon tax, and both remanufacturing and low-carbon investment can optimize cost and carbon emissions when carbon price is distributed at a certain interval. Furthermore, mixed strategies combining remanufacturing and low-carbon investment can optimize cost and carbon emissions simultaneously. The main contribution of this paper is to build a low-carbon circular system, which can help balance cost and carbon emissions of closed-loop supply chain.

Automated summary

This paper investigates the interaction mechanism between carbon tax and cap-and-trade in closed-loop supply chains and the impact of multiple carbon policies. The findings show a non-linear complementary relationship between carbon price and carbon tax, and demonstrate that remanufacturing and low-carbon investment can optimize cost and carbon emissions. Moreover, a mixed strategy combining remanufacturing and low-carbon investment is effective in simultaneously optimizing cost and carbon emissions.