Impact of Consumers’ Anticipated Regret on Remanufacturing Supply Chain Decisions Under Carbon Cap-and-Trade Policy

This paper explores the impact of consumers’ anticipated regret on the remanufacturing supply chain under carbon cap-and-trade policy. First, we constructed three remanufacturing models considering only carbon cap-and-trade policy, considering only consumers’ anticipated regret, considering both carbon cap-and-trade policy and consumers’ anticipated regret. Second, the equilibrium solutions of the three models are solved. Finally, the effects of carbon cap-and-trade policy and consumers’ anticipated regret on the equilibrium solutions are analyzed. Analytical results show that: (1) The carbon quota trading price is positively related to the price of new and remanufactured products, but negatively related to the demand for new products. Carbon quota trading price is positively correlated with the demand for remanufactured products when the ratio of carbon emissions per unit of new and remanufactured products is less than a certain threshold. (2) As the consumers’ anticipated regret sensitivity coefficient increases, the price of new and remanufactured products decreases, the demand for new products and the profits of the OEMs decrease, while the demand of remanufactured products and the profits of the IRs increase.