Government policies for e-commerce supply chain with fairness concerns towards sustainable remanufacturing

Abstract

Purpose

This paper aims to explore the effect of fairness concerns on supply chain members' optimal decisions and profits, to compare their profits under different policies, and to investigate the impact of each policy on members, consumers, and the environment with fairness concerns.

Design/methodology/approach

Considering government policies and fairness concerns in recycling management, this paper develops five recycling and remanufacturing decision models (anarchy policy model, reward-penalty mechanism model, recycling investment subsidies model, government tax model, and fund subsidy system model). In each model, the manufacturer and the online platform form the Stackelberg game. This research further discusses comprehensive environmental benefits and consumer surplus under five scenarios.

Findings

First, the fairness concerns of the online platform inhibit the recovery rate and supply chain members' profit while increasing the platform's utility. Second, fairness concerns increase the profit gap between the manufacturer and online platform, and the higher the degree of fairness concerns, the greater the profit gap; however, the four policies reduce the profit gap. Finally, when there are fairness concerns, environmental taxes damage the interests of supply chain members and consumers, but are most beneficial to the environment; recycling investment subsidies are on the contrary; the fund subsidy system depends on the relative size of the treatment fund and the subsidy fund.

Originality/value

This paper provides useful insights on how to regulate government policy to improve supply chain management with fairness concerns.

Citation

Huang, Y., Liu, S. and Liang, Y. (2023), "Government policies for e-commerce supply chain with fairness concerns towards sustainable remanufacturing", Kybernetes, Vol. 52 No. 9, pp. 3391-3424. https://doi.org/10.1108/K-08-2021-0755