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Assessing the effectiveness of carbon cap-and-trade and hybrid subsidy policies: The perspective of production, environment, and consumer
Journal of Cleaner Production ( IF 9.7 ) Pub Date : 2024-07-02 , DOI: 10.1016/j.jclepro.2024.143074 Peihan Li , Wei Wang , Xiqiang Xia
Journal of Cleaner Production ( IF 9.7 ) Pub Date : 2024-07-02 , DOI: 10.1016/j.jclepro.2024.143074 Peihan Li , Wei Wang , Xiqiang Xia
In response to climate change, remanufacturing and carbon quota policies have been widely applied to various industries around the world. Existing research tends to discuss government incentive policies for remanufacturers separately from carbon restricting policies for manufacturers, with little analysis of the effects of the simultaneous implementation of both types of policies. The Stackelberg game is a widely used model in integrated energy systems that can be used to effectively solve the management and control problems of integrated energy systems. This study takes carbon quota policy and production subsidy as the background, constructs the game model consisting of government subsidy and carbon quota policy under different allocation methods, and compares optimal decision-making, environmental benefit, and consumer surplus with a single subsidy policy or a single carbon quota policy. We built a coordination mechanism to improve the whole supply chain, and the results show that compared with a single policy, the combination of government subsidy with the benchmarking law is more conducive to maximizing the profits of remanufacturers. Appropriate governmental subsidies can also help those original equipment manufacturers make greater profits if they adjust their emission reduction investment in time. Appropriate government subsidies and emission reduction investment can stimulate both the production and consumption of new products. With adequate subsidy, the combination of the grandfathering law and government subsidy is more conducive than the single policy to improving the effectiveness of emission reduction policies. In addition, consumer surplus is higher under hybrid policies than under a single policy. With the implementation of hybrid policies, cost and fixed cost sharing mechanisms can further improve overall supply chain profitability. These findings suggest that the Chinese government should prepare various policies while considering market development and industrial goals and use subsidies as a tool to support remanufacturers.
更新日期：2024-07-02
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