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以綠色導向政策探討低經濟價值再生材料之回收供應鏈

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market. We focus on the challenge of encouraging the transportation of EDRMs for

voluntary consumption by considering effective economic instruments and different

configurations of the green supply chain system driven by economic incentives. Although

remarkable progress has been made by pioneering studies in promoting material recycling,

several critical issues remain unsolved and thus motivate this study. Sheu, Chou, and Hu,

(2005), Sheu and Chen (2014), and Chen and Sheu (2009) suggested the use of economic

instruments in strategic planning for a closed-loop supply chain. Drawing on global green

legislation, such as the Waste Electrical and Electronic Equipment Directive, Fleischmann,

Kuik, and Dekker (2002) argued that government standards are at least indispensable in

correcting the market failure of EDRMs, promoting awareness of pollution reduction, and

imposing responsibility on manufacturers.

Literature on recycling and closed-loop supply chains has only partially discussed the

effects of competition (Majumder and Groenevelt, 2001; Debo, Toktay, and Van

Wassenhove, 2005; Ferrer and Swaminathan, 2006). The use of economic incentives to

promote material recycling has also been extensively investigated in environmental

economics (fnUlph, 1996; Walls and Palmer, 2001; Benchekroun and Van Long, 2002).

Ferrer and Swaminathan (2006) facilitated competition in manufacturing operations in

monopoly and duopoly environments under the assumption of the homogeneous value of

recycled materials. Competition should be addressed in environmental policy because its

effectiveness heavily depends on market response. Without competition, manufacturers can

easily transfer their environmental cost to consumers by raising selling prices. Even in a

mandatory recycling system, manufacturers can still transfer responsibility to third parties

without altering their production formula.

Given that previous studies rarely considered the value and cost of designing incentive

mechanisms and thus resulted in unbalanced literature on closed-loop supply chains, we

focus on the economic issue in the manufacturing market rather than the consumer market

and consequently build a quantity competition model for the industrial market. A

manufacturer’s decisions, such as that for production quantity, determine the operational

strategies of an integrated supplier moving toward equilibrium conditions driven by

governmental economic incentives. The manufacturer must rely heavily on the decisions of

both governments and EDRM suppliers in determining the production amount of green

products in green supply chains.