Impact of Carbon Tax and Subsidy Policies on Original Equipment Manufacturers and Remanufacturing Companies from the Perspective of Carbon Emissions

Int J Environ Res Public Health. 2022 May 20;19(10):6252. doi: 10.3390/ijerph19106252.

Abstract

To analyze the impact of government carbon tax and subsidy policies on the manufac turing industry in the context of carbon peaking and carbon neutrality. This paper constructs a game model based on two government policies: a "carbon tax" policy for the original product and a "subsidy" policy for the remanufactured product, taking the original product and the remanufactured product as the objects. The policy game model is used to study the impact of carbon taxes, government subsidies, and carbon emissions on product quality, sales, and corporate profits. The results show that under the carbon tax and government subsidy policies, the price of remanufactured products will decrease, the quality will increase, sales will improve, and remanufacturers' profits will increase; these outcomes are conducive to the development of remanufacturing enterprises. Meanwhile, the price of original products will increase, quality will decrease, sales will decline, and original equipment manufacturers will have to develop and adopt low-carbon technologies to achieve sustainable development. This paper provides decision support for the formulation of government carbon emission policy, and theories and methods for the sustainable development of the manufacturing industry.

Keywords: carbon emission; game model; global warming; government subsidy; original equipment manufacturer (OEM); remanufacturing; sustainable development.

Publication types

  • Research Support, Non-U.S. Gov't

MeSH terms

  • Carbon*
  • Commerce
  • Financing, Government
  • Policy
  • Taxes*

Substances

  • Carbon

Grants and funding

This research is supported by the National Social Science Foundation of China (NO. 20BGL108).