Affiliation:
1. School of Economics and Management, Chang’an University, China
2. School of Economics and Management, Tsinghua University, China
3. School of Management, Xuzhou University of Technology, China
Abstract
To have a deeper understanding of the Chinese market reaction for different subsidy policies made by the government, we establish a game model of the competition between legal recyclers and illegal recyclers with government involved. Further, we consider the quality differentiation of end-of-life vehicles in every player’s decision-making. With a numerical simulation, the researchers validated this study. Based on the results of this research, we found that compared with the strategy of subsidizing the legal recyclers, subsidizing the end-of-life vehicle owners is more effective, and the legal recyclers would get more business from end-of-life vehicle owners. The quality of end-of-life vehicles plays a vital role when the recyclers make decisions on their recycling behaviour. Moreover, the differential subsidy policy will probably be useless if most of the end-of-life vehicles in the market are in poor quality. So, the Chinese government should adjust its policies on end-of-life vehicle market development based on the quality distribution of end-of-life vehicles, and the quality management should be implemented in the end-of-life vehicle supply chain for the efficiency and effectiveness of subsidy policies.
Funder
China Postdoctoral Science Foundation
The Beijing Key Laboratory of Megaregions Sustainable Development Modelling, Capital University of Economics and Business
Subject
Pollution,Environmental Engineering
Cited by
34 articles.
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