Implications of a Carbon Tax Mechanism in Remanufacturing Outsourcing on Carbon Neutrality

International Journal of Environmental Research and Public Health

Jie Deng¹  Mengsi Hu²  Xuwei Luo² 

[1] Law School, Southwestern University of Finance and Economics, Chengdu 610074, China;School of Management and Economic, University of Electronic Science and Technology of China, Chengdu 611731, China;

关键词: sustainable operations;    carbon monitoring;    environmental policy;    remanufacturing;   

DOI  :  10.3390/ijerph19095520

来源: DOAJ

【 摘 要 】

Many governments have imposed methods such as a carbon tax that aim to even out the negative effects of carbon emissions. The taxes levied on different agents lead to different make–buy decisions for production structures and different environmental outcomes. Some original equipment manufacturers (OEMs) outsource remanufacturing to independent remanufacturers (IRs). Thus, a question arises: What are the implications of carbon taxes levied on different agents on remanufacturing outsourcing decisions? To answer this question, we developed two models: (1) acting as common brand owners, OEMs can be taxed for both new and remanufactured products, or (2) acting as different emitters for production and remanufacturing, OEMs are taxed for new products; however, all carbon taxes related to remanufacturing are levied on IRs. Our analysis reveals that, regarding economic performance, firms should undertake a carbon emission tax on their own initiative because this allows the taxpayer to choose more units for its preferred products and leaves its rivals at a huge disadvantage. Moreover, regarding environmental sustainability, carbon emission taxes indeed lead to mitigating the effects of carbon emissions per unit; however, environmental agencies should also pay attention to reducing the total carbon emissions by limiting the volume effects.

【 授权许可】

Unknown