Is carbon asset pledge financing contributing to the operation of emission-dependent engineering machinery remanufacturing with emission abatement?

As a new financing strategy in the carbon trade market, carbon asset pledge financing (CAPF) provides a new financing channel for capital-constraint firms. For the carbon emission-dependent engineering machinery remanufacturer, how to formulate an optimal production plan under CAPF is still an unsolved problem. In this study, we suppose the emission-dependent remanufacturer adopts the pure carbon asset pledge financing (PCAPF) to solve capital shortage problem, and then study the optimal production and carbon emission reduction (CER) decisions of remanufacturers under PCAPF. The results show that: i) Only when the remanufacturer's initial capital is below a certain threshold can it benefit from PCAPF, and the threshold is different under all remanufacturing strategies. ii) Compared with no CER, the yield of new products increases when CER is implemented. However, whether remanufactured products increase depends on different remanufacturing strategies. iii) Under PCAPF, a high carbon asset pledge rate is not conducive to the production and profit of remanufacturers regardless of CER, and the increase of carbon price fluctuation coefficient negatively affects the production and environment without CER. However, the correlation among them is related to the threshold of the CER rate. iv) With/without CER, the yield of new/remanufactured products, environmental impact, and profit decrease sequentially with the choice of complete remanufacturing, partial remanufacturing, and non-remanufacturing under PCAPF. Meanwhile, although the increase of the CER rate increases environmental impact, whether it can improve the profit of remanufacturers is related to the threshold of unit emission of remanufactured products. Thus, the remanufacturer should balance the trade-off when implementing CER.