Research on the Impact of Government Regulation Strategies on the Decision-Making of WEEE Closed-Loop Supply Chain Manufacturers and Recyclers in the Context of Remanufacturing

Abstract

Extended producer responsibility stipulates that electrical and electronic manufacturers should not only pay attention to the forward distribution process of products, but also standardize the disposal of scrapped products. The recovered WEEE has cost advantages in remanufacturing, which can also promote the development of circular economy. In daily production practices, more and more people have noticed the effect of government regulations. Government regulations can standardize WEEE recovery and play a guiding role in effective implementation of recovery, which has gradually shifted from the initial supervision-based regulation to incentive regulation. Hence, it is necessary to discuss which policy is more effective. This paper mainly analyzes the corporate decisions of manufacturers and recyclers under supervision-based regulation and incentive regulation, and evaluates the effects of the two regulatory strategies by comparing corporate recovery, remanufacturing motivation and government fiscal expenditures. The research results show that production under supervision-based regulation policy is very complicated, and only remanufacturing behavior with sufficient cost advantage can benefit the enterprise. Compared with supervision-based regulation policy, incentive regulation policy displays obvious advantages and disadvantages. Manufacturers and producers under the incentive regulation have room for cooperation, and the government can expand the room for cooperation through fiscal regulation. In this interval, manufacturers and recyclers are highly motivated, both having the economic willingness to take the initiative in recovery, and manufacturers are also willing to produce more remanufactured products. The disadvantage is that the government has more fiscal expenditures and thus faces certain fiscal pressure. Both of these regulatory policies can effectively guide WEEE recovery processing, and the government can formulate appropriate regulatory policies based on actual needs