With the increasing popularity of extended producer responsibility (EPR) and blockchain implementation, new opportunities arise for recycling strategies between manufacturer and retailing platform in a closed-loop supply chain. We investigated the impact of blockchain on recycling strategies for retailing platform under EPR, using a Stackelberg game model that is manufacturer-led and platform-followed. Our results show that the implementation of Extended Producer Responsibility (EPR) and blockchain applications positively correlate with firm profits and social welfare when consumer green preferences and government subsidies are high, and the quality inspection time for remanufactured products and the cost of blockchain applications are relatively low. This correlation exists because government subsidies reduce the technological costs for retail platforms to implement blockchain, thereby incentivizing manufacturers to enhance their research and product quality. As a result, consumers are willing to accept higher prices for products, which in turn increases commission fees for retail platforms. Ultimately, this leads to increased total profits for both manufacturers and retail platforms, and government subsidies result in increased total social welfare.When government subsidies are endogenous, compared to the no subsidy and no blockchain (NN) model without EPR, the government green subsidy without blockchain (GSN) model under EPR, and the government green subsidy with blockchain (GSB) model under EPR, the government green and technology subsidy with blockchain (GTSB) model under EPR dominates in terms of total social welfare. When government subsidies are exogenous, under certain conditions, both the GSB and GTSB models exhibit superior social welfare. Our work highlights the driving effects of blockchain in facilitating manufacturer compliance with EPR, and suggests that to promote the enhancement of total social welfare, manufacturer and retailing platform should improve product quality and strengthen consumer trust in green products.
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