Subsidizing high-quality remanufactured products for sustainability

Abstract

This study aims to analyze the impact of government subsidy policies on the development of remanufacturing enterprises and product quality in the context of carbon peaking and carbon neutrality, to promote the sustainable development of the remanufacturing industry. It establishes a comparative game model for two cases of remanufacturing enterprises respectively producing low-quality and high-quality remanufactured products. In the context of government subsidies for only high-quality remanufactured products, we investigate the effects of government subsidies on remanufactured products' forms, prices, profits, and consumer preferences. The results show that government subsidies for high-quality remanufactured products help not only reduce the quality cost of remanufactured products and lower the wholesale and retail prices but also increase consumer preference for high-quality remanufactured products, enhance the market demand for remanufactured products, and promote scale expansion of the remanufacturing industry. This study provides decision support for governments to formulate subsidy coefficients for remanufacturing enterprises, offers theoretical and methodological support for the decarbonization and scale-up of remanufacturing and reduction of environmental pollution, and has significant practical value for achieving carbon peak and carbon neutralization goals.

Keywords: Environmental pollution; Game model; Government subsidies; Low carbon; Remanufacturing; Sustainability.