179 / 2024-04-22 18:51:07

Crafting regulatory strategies for remanufacturing: evaluat-ing education versus subsidy policies

Remanufacturing; Consumer education; Government subsidy; Regulatory policy

Rapid resource consumption and escalating environmental pollution have garnered global attention. Remanufacturing is widely acknowledged as an effective approach to tackling these issues. However, due to inadequate government regulation, the remanufacturing industry has not flourished as expected. Hence, our study delves into the impact of two pivotal government policies targeted at consumers: subsidy and education. We evaluate their effectiveness within a scenario involving the manufacturer and regulator in a Stenberg model. The research explores optimal strategies for both stakeholders, elucidating how these policies can influence business decisions and foster remanufacturing across various performance objectives. Our findings reveal that when the initial proportion of functionality-oriented consumers (FOCs) is relatively low, the subsidy policy tends to be more effective across most performance goals; conversely, education policies are preferable. Furthermore, a combined strategy emerges as superior to the subsidy but may fall short of the education policy in terms of social welfare. In sum, this study contributes to a clearer comprehension of how government subsidies and education policies contribute to promoting remanufacturing.