Study on Closed-Loop Supply Chain Strategy Based on Carbon Tax Policy and Reward-Penalty Mechanism

Abstract

Considering the environmental awareness of consumers, a Stackelberg game model is established for the closed-loop supply chain composed of manufacturer, retailer and third-party recycler. This paper analyzes three strategies of carbon tax policy (CTP), reward-penalty mechanism (RPM), carbon tax policy and reward-penalty mechanism (CTP and RPM) under decentralized decision. The results show that increasing consumers' awareness of environmental protection can improve price, demand and recovery rate of product under all three strategies. When there is a carbon tax policy, carbon emissions can be reduced. When there is a reward-penalty mechanism, it can improve the recovery rate of waste products and increase the profits of closed-loop supply chain members.