Closed-loop supply network of electrical and electronic equipment under carbon tax policy

Waste electrical and electronic equipment is one of the essential pollutants with significant negative impacts on the environment and human health. In this study, a multi-period mixed-integer linear programming model is developed to design a closed loop supply network for the management of electrical and electronic equipment by explicitly considering the economic and environmental sustainability with a budget constraint. Different recycling options like refurbishing, disassembling, remanufacturing, and disposal centers are considered in the design of the network. The model minimizes the total costs of the network and the total carbon emission tax. The literature review shows that the introduced model is more comprehensive than the other existing models because it simultaneously determines the location of facilities, the capacity of facilities, type of manufacturing technologies, variety of vehicles, and the allocation and transportation of materials and products. The model was applied to a real-life case study in Iran and could provide a profit of IRR 245,509,165 M during the planning periods. The carbon tax policy with different echelons is applied to control the environmental impacts in which the carbon tax increases as carbon emissions increase. The results show a nearly linear relationship between the total costs of the network and the carbon tax. The carbon tax of equal to or more than 10,800 IRR/t CO₂ can be a deterrent factor for the electrical and electronic equipment manufacturer in Iran to diminish emissions through investment in green technologies.