Three-Echelon Closed-Loop Supply Chain Network Equilibrium under Cap-and-Trade Regulation

This paper investigates the impacts of cap-and-trade (CAT) regulation on a three-echelon closed-loop supply chain network (CLSCN) that consists suppliers, high-emission and low-emission manufacturers, demand markets carbon trading centers. The presented CLSCN model includes both product subnets. Combining variational inequality theory (VI) with complementary theory, we first characterize optimal conditions for members in each tier first, then derive entire CLSCN. In addition, focus effects caps EOL collection rate target performances numerical examples. results reveal that, some cases, there is consistency between emission reduction government profit enterprises. should choose reasonable moderate all enterprises to balance members’ economic interests, emissions, as well resources utilization rate. Moreover, not blindly pursue high target. above conclusions can provide practical guidance governments under CAT regulation.