The Analysis on Carbon Emission Reduction Effect of Closed-Loop Supply Chain Based on Government´s Recoverying Subsidy

Supply chain plays an important role in energy consumption and carbon emissions in an economy, how to optimize processes of supply chain, and promote whole supply chain in a way of de-carbonization, it has become a common concern of the community. By constructing a two-echelon closed-loop supply chain model, which composed of a single manufacturer and a single salesman, this article aims to analysis the carbon emission reduction effects and overall performance of whole supply chain under different circumstances, such as forward supply chain, reverse supply chain and government recycle subsidy. Results indicate that the return rate of used products and profit of each member of closed-loop supply chain is bigger after government´s subsidies. And the carbon reduction emission effect of whole supply chain is also getting better than that of without government subsides. Based on maximum carbon emission effect, we give the optimal government recycling subsidy model, which will provide an idea for the government to implement recovering subsidies on supply chain in low-carbon economy.