Input subsidy versus output subsidy for green R&D in a supply chain

Yanfang Zhang, Qianwen Tan and Yuchang Ji

Journal of International Development, 2023, vol. 35, issue 1, 97-126

Abstract: This paper investigates the effects of the government's input subsidy and output subsidy in a green supply chain with a manufacturer and a retailer. We find the input subsidy does not necessarily give rise to a higher R&D input, while the output subsidy does not necessarily lead to a higher output. The comparison is strongly dependent on the externality of the production and consumers' environmental awareness.

Date: 2023
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https://doi.org/10.1002/jid.3676

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Persistent link: https://EconPapers.repec.org/RePEc:wly:jintdv:v:35:y:2023:i:1:p:97-126

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