Comparative Analysis of Government Subsidy Policies in a Dynamic Green Supply Chain Considering Consumers Preference

Chao Lu, Weilai Huang and Haifang Cheng
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Chao Lu: School of Management, Huazhong University of Science and Technology, Wuhan 430074, China
Weilai Huang: School of Management, Huazhong University of Science and Technology, Wuhan 430074, China
Haifang Cheng: School of Management, Huazhong University of Science and Technology, Wuhan 430074, China

Sustainability, 2021, vol. 13, issue 21, 1-26

Abstract: Governments formulate different subsidy policies to incentivize manufacturers to produce green products, and these policies may have different subsidy effects. The purpose of this study is to compare and analyze the dynamic effects of different subsidy policies to the manufacturer in a green supply chain composed of a manufacturer and a retailer. Three differential game models, considering the consumers preference, are established under three subsidy policies, and the corresponding optimal equilibrium strategies of the supply chain members are analyzed. An example is used to compare the effects of the three policies under the equal government subsidy expenditure. The study finds that the rankings of indexes to evaluate steady-state subsidy effects under the different subsidy policies are time invariant, and the government can preliminarily evaluate these policies according to different subsidy goals. The rankings of indexes to evaluate phased subsidy effects under these policies are time varying. If both subsidy effects and subsidy efficiencies in steady state are taken into account, the optimal selection paths of subsidy policies in the whole period can be obtained. The subsidy effects of the same policy are amplified under the condition of equal steady-state subsidy expenditure, but the rankings of effect indexes under the different subsidy policies are not affected.

Keywords: green supply chain; government subsidy; green degree; differential game; consumers preference (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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