Impact of government financial intervention on competition among green supply chains

Jiuh-Biing Sheu and Yenming Chen

International Journal of Production Economics, 2012, vol. 138, issue 1, 201-213

Abstract: This work analyzes the effects of governmental financial intervention on green supply chain competition using a three-stage game-theoretic model. Nash equilibrium solutions for governmental and chain member decisions are derived. Analytical results suggest that the government should adopt green taxation and subsidization to ensure that green profit attributed to green-product production is non-negative. Strategically, low-wholesale-price strategies are suggested to recycled-component suppliers under green subsidization to stimulate manufacturers' intention of green product production under green taxation. Numerical results reveal that under equilibrium conditions, social welfare and chain-based profits improve by 27.8% and 306.6%, respectively, compared with the case without financial intervention.

Keywords: Green supply chain management; Economic incentives; Game theory (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (92)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527312001326
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:138:y:2012:i:1:p:201-213

DOI: 10.1016/j.ijpe.2012.03.024

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().