Effect of Government Recycling Fund Policy and Design of Optimal Tax- Subsidy Standard in a Manufacturing- Recycling System

DOI

10.2991/978-94-6463-098-5_76How to use a DOI?

Keywords

WEEE; Recycling fund policy; Extended Producer Responsibility; Closed loop supply chain

Abstract

In this paper, the Stackelberg game method is used to construct a decision-making model composed of government, a single producer and a single recycler. Considering the WEEE recycling fund policy of the government, the influence of the joint mechanism of tax-subsidy on the production and recycling decisions of relevant stakeholders in the supply chain is discussed. On this basis, this paper discusses the government's optimal tax-subsidy strategy under the current policy of maximizing social welfare, and analyzes the factors that affect the formulation of the optimal tax-subsidy standard. The conclusion shows that, first of all, the tax mainly restrains the production behavior, while the subsidy mainly stimulates the recycling behavior. However, when the manufacturer uses the recycled raw materials for production, the subsidy will also increase the manufacturer's profit. Secondly, from the perspective of social welfare maximization, the optimal government tax is positively correlated with product production cost and environmental damage, while the optimal subsidy is positively correlated with product disassembly rate and recycling environmental benefits.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yujie Jiang
AU  - Bangyi Li
PY  - 2022
DA  - 2022/12/27
TI  - Effect of Government Recycling Fund Policy and Design of Optimal Tax- Subsidy Standard in a Manufacturing- Recycling System
BT  - Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022)
PB  - Atlantis Press
SP  - 665
EP  - 671
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-098-5_76
DO  - 10.2991/978-94-6463-098-5_76
ID  - Jiang2022
ER  -