Pricing Strategy of Closed-loop Supply Chain Based on-Subsidy and Carbon Tax

Abstract

Abstract: A closedloop supply chain (CLSC) composed of a manufacturer, a retailer, and a thirdparty is addressed in this paper. The supply chain is governed by the premium and penalty mechanism which is composed of subsidization or carbon taxation or subsidization and carbon taxation. The Stackelberg game theory is used to study the pricing strategy for such a supply chain under decentralized decision. The results show that premium and penalty mechanism based on subsidization and carbon taxation can effectively reduce not only the carbon emissions, but also enhance collection rate. By using numerical examples, the effectiveness of the premium and penalty mechanism based on subsidization and carbon taxation is validated.

Key words: closed-loop supply chain, subsidy and carbon tax, premium and penalty mechanism, Stackelberg game, pricing strategy

Gao Ju-hong，Wang Hai0yan，Meng Yan-sha. Pricing Strategy of Closed-loop Supply Chain Based on-Subsidy and Carbon Tax[J]. Industrial Engineering Journal , 2014, 17(3): 61-67.

References

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