Research on Pricing Strategy of Low-Carbon Label Products in Closed-Loop Supply Chain

Carbon labeling system and remanufacturing are important ways to lead the transformation of green and low-carbon consumption and promote carbon emission reduction in the supply chain. In this paper, a Stackelberg game model dominated by the remanufacturer/manufacturer is established under two models, and the pricing decisions of new/remanufactured products in different markets are mainly studied considering low-carbon labels, consumer low-carbon preference and ratio, the proportion of adding low-carbon labels. The results show that: (1) The addition of low-carbon label and grades affects optimal profits and optimal pricing. (2) Consumer low-carbon preference always has a positive effect on the profits of remanufacturer/manufacturer, and will also raise the pricing. (3) The proportion of adding low-carbon labels to new products is higher than a certain threshold, the remanufacturer/-manufacturer will make profits. (4) It is found that not adding low-carbon labels to remanufactured products will be more profitable for the remanufacturer/manufacturer.

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Published
2024-12-15
DOI
https://doi.org/10.1109/ieem62345.2024.10857053
Primary Topic
Sustainable Industrial Ecology
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article
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article

Research on Pricing Strategy of Low-Carbon Label Products in Closed-Loop Supply Chain

Xuefeng Wang, Qiannong Gu
Sustainable Industrial Ecology
article

Research on Pricing Strategy of Low-Carbon Label Products in Closed-Loop Supply Chain

Xuefeng Wang, Qiannong Gu
article en

Abstract

Carbon labeling system and remanufacturing are important ways to lead the transformation of green and low-carbon consumption and promote carbon emission reduction in the supply chain. In this paper, a Stackelberg game model dominated by the remanufacturer/manufacturer is established under two models, and the pricing decisions of new/remanufactured products in different markets are mainly studied considering low-carbon labels, consumer low-carbon preference and ratio, the proportion of adding low-carbon labels. The results show that: (1) The addition of low-carbon label and grades affects optimal profits and optimal pricing. (2) Consumer low-carbon preference always has a positive effect on the profits of remanufacturer/manufacturer, and will also raise the pricing. (3) The proportion of adding low-carbon labels to new products is higher than a certain threshold, the remanufacturer/-manufacturer will make profits. (4) It is found that not adding low-carbon labels to remanufactured products will be more profitable for the remanufacturer/manufacturer.

Tianjin University of Technology and Education (CN)
Openalex Percentile: Top 61%
Sustainable Industrial Ecology
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Research on Pricing Strategy of Low-Carbon Label Products in Closed-Loop Supply Chain — Xuefeng Wang, Qiannong Gu · (2024) | TGRS Research Map | TGRS