Management Review ›› 2021, Vol. 33 ›› Issue (12): 30-40.

• Economic and Financial Management • Previous Articles     Next Articles

Effects of Double Environmental Regulations on Remanufacturing Decision

Yang Guangyong, Ji Guojun   

  1. School of Management, Xiamen University, Xiamen 361005
  • Received:2018-10-17 Online:2021-12-28 Published:2022-01-25

Abstract: More and more countries and regions have implemented environmental regulation spectrum to limit environmental impacts at various stages in the production, use and disposal of powered products. These regulations involve the atmospheric and land environments. Powered products not only generate carbon emissions in the manufacturing and use stages, but also pollute the land environment when discarded. In addition, remanufacturing is increasingly being believed by manufacturers as a strategy to mitigate environmental impacts through recycling-remanufacturing of new products at the end of use. Based on this, this paper studies how environmental regulation spectrum (which constrains both the amount of discarded products and the carbon emissions generated by powered products) affects manufacturers' remanufacturing decisions. Our conclusions show that under the scenarios of no environmental regulation, single environmental regulation and double environmental regulation, when the new product is used for a short time, the manufacturer's optimal strategy is to choose remanufacturing strategy; when the new product is used for a long time, non-manufacturing strategy is more conducive to the manufacturer. In addition, compared with the non-remanufacturing strategy, the scope of remanufacturing strategy under the atmospheric environment regulation is the smallest; remanufacturing strategy under land environmental regulation is beneficial to manufacturers to the largest extent, and the scope of remanufacturing strategy under double environmental regulation is between the above two types of single environmental regulation.

Key words: use time, cap and trade regulation, remanufacturing, disposal cost