Effect on the Model of Government-Subsidized Dual-Channel Closed-loop Supply Chain: Taking Automobile Tire Recycling as an example

The speed of product updating iteration is getting faster and faster, which leads to more and more serious problems of waste of resources and carbon emissions, and the increasing attention to the sustainable use of resources in all countries of the world, and from the concept of sustainable development, many new ideas have been formed. At present, China’s economy is facing severe environmental pollution and resource shortage, and recycling waste resources is the key for enterprises to obtain better development prospects, so the closed-loop supply chain model has become the focus of enterprises. For enterprises, the problem of recycling and manufacturing is also quite cumbersome and complex, the government can intervene to solve the problem, with subsidies to promote the recycling of waste goods. Therefore, this study mainly from the two-channel supply chain, closed-loop supply chain and government intervention three angles, to car tire recovery as the research object, using the relevant theory of the Stackelberg game to study the differences between channels. By constructing the model without government subsidy and the model with government subsidy, this paper studies the role of government subsidies in the recycling process of waste tires, and analyzes the influence of government intervention measures on the game among manufacturers, retailers and consumers. The results show that the government subsidy will improve the overall profit level, increase the total demand for tires in the market, and reduce the environmental impact of used tires. By using the theory of dual-channel closed-loop supply chain and other relevant knowledge, the concrete application of closed-loop supply chain in waste material recovery will be promoted.