Equilibrium Optimization with Multi-Energy-Efficiency-Grade Products: Government and Market Perspective

Qiuyun Zhu, Xiaoyang Zhou (), Aijun Liu, Chong Gao, Lei Xu, Fan Zhao, Ding Zhang () and Benjamin Lev
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Qiuyun Zhu: School of Economics and Management, Xidian University, Xi’an 710126, China
Xiaoyang Zhou: School of Management, Xi’an Jiaotong University, Xi’an 710049, China
Aijun Liu: School of Economics and Management, Xidian University, Xi’an 710126, China
Chong Gao: School of Economics and Management, Xidian University, Xi’an 710126, China
Lei Xu: Economics and Management College, Civil Aviation University of China, Tianjin 300300, China
Fan Zhao: School of Economics and Management, Xidian University, Xi’an 710126, China
Ding Zhang: School of Business, State University of New York at Oswego, Oswego, NY 13126, USA
Benjamin Lev: Decision Sciences Department, LeBow College of Business, Drexel University, Philadelphia, PA 19104, USA

Energies, 2022, vol. 15, issue 19, 1-23

Abstract: This paper studies the multi-level supply chain network equilibrium optimization problem of multi-energy-efficiency products under different government subsidies and demand scales. In the equilibrium optimization problem, manufacturers determine the production volume of the energy-saving products; retailers decide the transaction volume with manufacturers, distribution volume for markets, and marketing efforts of energy-saving products; markets determine the transaction price. Firstly, the optimal decision-making behaviors of manufacturers, retailers, and markets are described. Simultaneously, the global optimization problem is transformed into a finite-dimensional variational inequality formulation. Then, the equilibrium conditions of the whole supply chain network are derived by the Euler method. Finally, a case study verifies the effectiveness of the proposed method. Interestingly, we found that energy-saving subsidies and demand scales were negatively correlated with the marketing efforts of the subsidized retailers for high energy-efficient products and positively correlated with the marketing efforts of non-subsidized retailers for high energy-efficient products in the same market; the development of retailers in the same market tended to be consistent, and the differentiation of the demand scale eliminated the retailers without a competitive advantage.

Keywords: supply chain network equilibrium; multi-energy-efficiency-grade products; energy-saving subsidy; demand scales; marketing efforts (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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