Abstract: The government adopts carbon tax policy and subsidy policy in order to promote the development of remanufacturing industry. Thus, in order to analyze the influence of two government policies on outsourcing remanufacturing, the two game models between an original equipment manufacturer (OEM) and a remanufacturer are constructed based on the government carbon tax and government subsidy policies respectively. Based on the two game models, firstly, the impact of the two government policies on the optimal solution of manufacturing/remanufacturing is compared and analyzed; secondly, the impact of the two government policies on the environment is analyzed; finally, some management inspirations are givenbasing on the analysis and the actual situation. The main results are as follows: government subsidy policy could effectively promote waste product recycling, while when the government adopts carbon tax policy, it could only effectively promote waste product recycling when the unit carbon tax of new product is greater than a certain threshold. When the government adopts the subsidy policy, the OEM could obtain the government subsidy by reducing the unit outsourcing cost of remanufacturing products to increase their own profit. When the government adopts the carbon tax policy, the OEM transfer part of the carbon tax to consumers by increasing the unit retail price of new products. The government subsidy policy could increase the profit of OEM and the remanufacturer, and the government carbon tax policy could only increase the income of the OEM when the unit carbon tax quota of new product exceeds a certain threshold. Compared with the unit environmental impact of new product, when the unit environmental impact of remanufactured product is greater than a certain threshold value, the government adopts subsidy policy to have the greatest impact on the environment, while the government adopts carbon tax policy to have the least impact. When the government adopts the carbon tax policy, it could effectively promote the remanufacturing production and improve the initiative of remanufacturers. However, the carbon tax levied on new products is not as small as possible, but should be larger than a certain threshold.

Key words: Carbon tax; subsidy; outsourcing remanufacturing; game theory