Abstract
The number of electronic products has increased sharply with the development of hi-tech. The recycling of waste products is becoming an inevitable requirement for sustainable development. The government has also adopted a variety of subsidy strategies for the recycling and remanufacturing of electronic products. The improvement of people’s living standards has also made consumer demand diverse, and promoting the development of the remanufactured electronic product market also needs to be analyzed from the demand side affected by consumer preferences. This paper takes the remanufacturing decision in the process of electronic product recycling and remanufacturing as the main focus, and analyzes the game relationship between manufacturers, remanufacturers and consumers under the two scenarios of whether the government subsidizes or not, mainly carry out numerical simulations to analyze two types of factors that affect supply chain members: consumers quality recognition and consumers environmental preferences, as well as remanufactured consumer subsidies and combined subsidies. Relevant conclusions are drawn: Consumers’ environmental preference and the increase in the consumers’ quality recognition of remanufactured products can increase the demand for remanufactured products and the profits of remanufacturers. Government subsidy will effectively increase the profits of remanufacturers, and the combined subsidy strategy can increase the influence of consumers quality recognition and consumers environmental preferences on remanufacturers, superior to single consumption subsidy strategy.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Data availability
Data will be made available on request.
References
Atasu, A., Sarvary, M., & Van Wassenhove, L. N. (2008). Remanufacturing as a marketing strategy. Management Science, 54(10), 1731–1746. https://doi.org/10.1287/mnsc.1080.0893
Chander, P., & Muthukrishnan, S. (2015). Green consumerism and pollution control. Journal of Economic Behavior & Organization, 114(June), 27–35. https://doi.org/10.1016/j.jebo.2015.02.013
Chen, J.-Y., Dimitrov, S., & Pun, H. (2019). The impact of government subsidy on supply chains’ sustainability innovation. Omega, 86(July), 42–58. https://doi.org/10.1016/j.omega.2018.06.012
Debo, L. G., Beril Toktay, L., & Van Wassenhove, L. N. (2005). Market segmentation and product technology selection for remanufacturable products. Management Science, 51(8), 1193–1205. https://doi.org/10.1287/mnsc.1050.0369
Feng, L., Govindan, K., & Li, C. (2017). Strategic planning: Design and coordination for dual-recycling channel reverse supply chain considering consumer behavior. European Journal of Operational Research, 260(2), 601–612. https://doi.org/10.1016/j.ejor.2016.12.050
Heydari, J., Govindan, K., & Jafari, A. (2017). Reverse and closed loop supply chain coordination by considering government role. Transportation Research Part d: Transport and Environment, 52(May), 379–398. https://doi.org/10.1016/j.trd.2017.03.008
Liu, G. F., Xu, Y., Tian, T. T., Wang, T., & Liu, Y. (2020). The impacts of China’s fund policy on waste electrical and electronic equipment utilization. Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2019.119582
Meng, L., Qiang, Q., Huang, Z., Zhang, B., & Yang, Y. (2020). Optimal pricing strategy and government consumption subsidy policy in closed-loop supply chain with third-party remanufacturer. Sustainability, 12(6), 2411. https://doi.org/10.3390/su12062411
Miao, Z., Mao, H., Ke, Fu., & Wang, Yu. (2018). Remanufacturing with trade-ins under carbon regulations. Computers & Operations Research, 89(January), 253–268. https://doi.org/10.1016/j.cor.2016.03.014
Rofin, T. M., & Mahanty, B. (2018). Optimal dual-channel supply chain configuration for product categories with different customer preference of online channel. Electronic Commerce Research, 18(3), 507–536. https://doi.org/10.1007/s10660-017-9269-4
Subramanian, R., Ferguson, M. E., & Beril Toktay, L. (2013). Remanufacturing and the component commonality decision. Production and Operations Management, 22(1), 36–53. https://doi.org/10.1111/j.1937-5956.2012.01350.x
Wan, N., & Hong, D. (2019). The impacts of subsidy policies and transfer pricing policies on the closed-loop supply chain with dual collection channels. Journal of Cleaner Production, 224(July), 881–891. https://doi.org/10.1016/j.jclepro.2019.03.274
Wang, K., Zhao, Y., Cheng, Y., & Choi, T.-M. (2014). Cooperation or competition? Channel choice for a remanufacturing fashion supply chain with government subsidy. Sustainability, 6(10), 7292–7310. https://doi.org/10.3390/su6107292
Wang, Y., Fan, R., Shen, L., & Miller, W. (2020). Recycling decisions of low-carbon e-commerce closed-loop supply chain under government subsidy mechanism and altruistic preference. Journal of Cleaner Production, 259(June), 120883. https://doi.org/10.1016/j.jclepro.2020.120883
Yi, H., Huang, D., Qin, L., Zeng, G., Lai, C., Cheng, M., Ye, S., Song, B., Ren, X., & Guo, X. (2018). Selective prepared carbon nanomaterials for advanced photocatalytic application in environmental pollutant treatment and hydrogen production. Applied Catalysis B: Environmental, 239, 408–424. https://doi.org/10.1016/j.apcatb.2018.07.068.
Zhang, T., He, G., & Han, Y. (2020). How to optimize retailers’ recovery strategies for electronic waste. Journal of Cleaner Production, 244(January), 118796. https://doi.org/10.1016/j.jclepro.2019.118796
Zhang, T., Ke, Wu., Tan, Y., & Zihan, Xu. (2023). Subsidy or not? How much government subsidy can improve performance level of energy-saving service company? Environmental Science and Pollution Research, 30(25), 67019–67039. https://doi.org/10.1007/s11356-023-27212-w
Zhang, T., Ma, Y., & Li, A. (2021). Scenario analysis and assessment of China’s nuclear power policy based on the paris agreement: A dynamic CGE model. Energy, 228(August), 120541. https://doi.org/10.1016/j.energy.2021.120541
Zhang, T., Yingchi, Qu., & He, G. (2022). Pricing strategy for green products based on disparities in energy consumption. IEEE Transactions on Engineering Management, 69(3), 616–627. https://doi.org/10.1109/TEM.2019.2907872
Zhao, S., Zhu, Q., & Cui, Li. (2018). A decision-making model for remanufacturers: Considering both consumers’ environmental preference and the government subsidy policy. Resources, Conservation and Recycling, 128(January), 176–186. https://doi.org/10.1016/j.resconrec.2016.07.005
Zhu, X., Wang, Z., Wang, Y., & Li, B. (2017). Incentive policy options for product remanufacturing: Subsidizing donations or resales? International Journal of Environmental Research and Public Health, 14(12), 1496. https://doi.org/10.3390/ijerph14121496
Acknowledgements
The authors gratefully acknowledge the support of the Natural Science Foundation of Shandong (ZR2022MG083), the Fundamental Research Funds for the Central Universities (22CX04008B).
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
Lv, X., Zhang, S. & Zhang, T. Subsidy or not? Research on remanufacturing strategy under the influence of consumers’ preferences. Environ Dev Sustain (2024). https://doi.org/10.1007/s10668-024-04893-y
Received:
Accepted:
Published:
DOI: https://doi.org/10.1007/s10668-024-04893-y