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<p>The low-carbon ecological city aims to harmonise sustainable urban development with low-emission planning approaches. Emissions from business production processes are central to low-carbon planning. This paper explores three closed-loop supply chain recycling models - manufacturer, retailer, and third-party -considering carbon trading and emission reduction technology investment. Respective Stackelberg game models are developed incorporating carbon emission reduction costs, recycling costs, carbon trading price, emission intensity, and recycling price. The influence of these variables on carbon emission reduction and profit is examined through numerical analysis. Results indicate the government’s free carbon quota does not impact per-unit carbon reduction or manufacturer profit, nor optimal recycling mode selection. Under specific remanufacturing emission intensity and production cost saving conditions, carbon quota trading can substantially incentivise manufacturers to invest in emission reduction and recycling. With carbon trading and emission reduction technology investment, manufacturer recycling optimises economic and environmental benefits when remanufactured products provide high production cost savings. This fosters sustainable development supporting low-carbon planning.</p>
</abstract>

The low-carbon ecological city aims to harmonise sustainable urban development with low-emission planning approaches. Emissions from business production processes are central to low-carbon planning. This paper explores three closed-loop supply chain recycling models - manufacturer, retailer, and third-party -considering carbon trading and emission reduction technology investment. Respective Stackelberg game models are developed incorporating carbon emission reduction costs, recycling costs, carbon trading price, emission intensity, and recycling price. The influence of these variables on carbon emission reduction and profit is examined through numerical analysis. Results indicate the government’s free carbon quota does not impact per-unit carbon reduction or manufacturer profit, nor optimal recycling mode selection. Under specific remanufacturing emission intensity and production cost saving conditions, carbon quota trading can substantially incentivise manufacturers to invest in emission reduction and recycling. With carbon trading and emission reduction technology investment, manufacturer recycling optimises economic and environmental benefits when remanufactured products provide high production cost savings. This fosters sustainable development supporting low-carbon planning.

Recycling Strategy of Green Closed-Loop Supply Chain Under Urban and Rural Low-Carbon Planning

Ecological Chemistry and Engineering S

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The low-carbon ecological city aims to harmonise sustainable urban development with low-emission planning approaches. Emissions from business production...

Recycling Strategy of Green Closed-Loop Supply Chain Under Urban and Rural Low-Carbon Planning

Published Online: Jan 16, 2024

Page range: 595 - 615

DOI: https://doi.org/10.2478/eces-2023-0050

Keywords
urban-rural low-carbon planning, carbon trading mechanisms, remanufacturing recycling, sustainable development, Stackelberg game

© 2023 Menggang Li et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Recycling Strategy of Green Closed-Loop Supply Chain Under Urban and Rural Low-Carbon Planning

Published Online: Jan 16, 2024

Page range: 595 - 615

DOI: https://doi.org/10.2478/eces-2023-0050

Keywordsurban-rural low-carbon planning, carbon trading mechanisms, remanufacturing recycling, sustainable development, Stackelberg game

© 2023 Menggang Li et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
urban-rural low-carbon planning, carbon trading mechanisms, remanufacturing recycling, sustainable development, Stackelberg game