I am trying to understand the photon propagator renormalization procedure, followed in M. Srednicki's book Quantum Field Theory. Specifically, I am reading Chapter 62, titled "Loop Corrections in Spinor Electrodynamics" and I am focused on the renormalization of the photon propagator at the loop level.
The procedure is as follows:
Write down the full QED Lagrangian comprised by the free Lagrangian, the interaction term and the counter-terms. The interaction term contains the renormalization constant $Z_1$ and the bare charge (I think despite that the author does not discuss anything about bare fields or bare masses/charges). The counter-term Lagrangian is given by $$\mathcal{L_{\text{c.t}}}=i(Z_2-1)\bar{\Psi}{\partial\!\!\!/}\Psi -(Z_m-1)m\bar{\Psi}\Psi-\frac{1}{4}(Z_3-1)F_{\mu\nu}F^{\mu\nu}$$
Label the contributions to the photon propagator from the counter terms and all the loop level diagrams as $i\Pi^{\mu\nu}(k)=i\Pi(k^2)(g^{\mu\nu}k^2-k^{\mu}k^{\nu})$ and calculate them by including the diagram with the closed fermion loop and the counter term diagram.
Perform the calculations to the very end and isolate the divergent behavior by analytically continuing the number of spacetime dimensions to $d=4-\varepsilon$. The divergences should be $\mathcal{O}(\varepsilon^{-1})$. For that step, the electron charge is redefined in a way such that the dimensionality of the latter is absorbed into a factor $\mu$, i.e. $e\rightarrow e\tilde{\mu}^{\epsilon/2}$.
Cancel those divergences by choosing the counter-term $Z_3$ appropriately. Finiteness of the loop-corrected photon propagator implies that there will be a contribution in the counter term $\mathcal{O}(\varepsilon^{-1})$ to cancel the divergent part of the (associated with the number of dimensions of the spacetime), and upon imposing $\Pi(0)=0$ yields the exact form of the counter-term $Z_3$ $$Z_3=1-\frac{e^2}{6\pi^2}\bigg[\frac{1}{\varepsilon}-\ln(m/\mu)\bigg]+\mathcal{O}(e^4)$$ where $\mu^2=4\pi e^{-\gamma}\tilde{\mu}^2$.
I have three questions about the above steps:
Why do we impose $\Pi(0)=0$? And how is this associated with the fact that we are choosing the "on-shell renormalization scheme"? Could this choice be exchanged with some other choice capable of fixing the counter term? I mean I realize that there are three renormalization schemes called "on-shell", "MS" and "MS bar" and that each of them removes the UV divergences of the theory with a certain way (depending each time on some specific conditions I guess), and that some conditions are needed in order to match the experimental results with the loop corrections, but I fail to see how this is applied here...
Is the substitution $e\rightarrow e\tilde{\mu}^{\epsilon/2}$ what we call charge renormalization, i.e. the same as starting with a bare charge $e_0$ in the Lagrangian and simply substituting the bare charge $e_0$ with $e\tilde{\mu}$? This is what I read in other QFT books (i.e. Mandl's book) and I would like to make the correspondence with those books that I have read...
Why is there not an anti-fermion diagram? A diagram in which the closed-fermion loop is comprised by anti-fermionic propagators instead of fermionic ones? Shouldn't be such a contribution as well?
I also have a bonus question: what if my Lagrangian contained another set of spinor fields, that correspond to another species of spin 1/2 particles. Then, we would add to the previous Lagrangian the following terms $$i\bar{\psi}{\partial\!\!\!/}\psi-\tilde{m}\bar{\psi}\psi+ i(\tilde{Z_2}-1)\bar{\psi}{\partial\!\!\!/}\psi-(\tilde{Z}_m-1)\tilde{m}\bar{\psi}\psi+ \tilde{Z_1}\tilde{e}\bar{\psi}{A\!\!\!/}\psi$$ where $\psi$ represents the new fermionic field (as opposed to $\Psi$), and $\tilde{e}$, $\tilde{m}$ represents its charge and its mass (respectively). Then, I find that $Z_3$ would be fixed in the following way $$Z_3=1-\frac{e^2}{6\pi^2}\bigg[\frac{1}{\varepsilon}-\ln(m/\mu)\bigg] -\frac{\tilde{e}^2}{6\pi^2}\bigg[\frac{1}{\varepsilon}-\ln(\tilde{m}/\mu)\bigg] +\mathcal{O}(e^4)$$ Is my "extension" of the photon propagator renormalization to the case in which there are two fermionic fields correct? If not, why?
Any help or comments will be appreciated.