This study focuses on the effect of remanufacturing on duopoly competition in a two-period planning horizon. To conduct a convincing analysis, we develop two models to derive the conditions under which one manufacturer implements remanufacturing and two manufacturers implement remanufacturing in a duopoly situation. Furthermore, we analyze the influence of remanufacturing on quantity, price, corporate profits, consumer surplus, and the environmental pollution. The results show that: 1) Only when the sum of the remanufacturing subsidy and the cost savings of remanufactured products meet certain conditions, the duopoly will implement remanufacturing; 2) Remanufacturing can increase the remanufacturer's profit, total consumer surplus in two-period, and leads to a better outcome for the environment if the unit pollution of remanufacturing is low enough. In addition, if the value of the remanufacturing subsidy is high and the cost savings of remanufactured products is large, remanufacturing can increase the supply of new products in the first period; 3) If only one firm adopts remanufacturing, remanufacturing could bring competitive advantage for remanufacturer in terms of market share and profit, and if the sum of the remanufacturing subsidy and the cost savings of remanufactured products is large enough, the remanufacturer will monopolize the first period market.