Effect of Governmental Subsidies on Green Energy Supply Chains: A Perspective of Meteorological Disasters

Shan Liang, Huiming Zhang and Tianyi Zhang ()
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Shan Liang: School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China
Huiming Zhang: School of Business, Nanjing University of Information Science and Technology, Nanjing 211544, China
Tianyi Zhang: School of Biological Science and Medical Engineering, Southeast University, Nanjing 211102, China

Energies, 2024, vol. 17, issue 17, 1-17

Abstract: The energy sector, serving as a pivotal propellant within the macroeconomic framework, finds its production, distribution, and consumption aspects considerably influenced by climatic variations. In this study, a two-tier Stackelberg model for the green energy supply chain is developed, which is employed to analyze the profit disparities between suppliers and retailers both in the absence and presence of meteorological disasters. Furthermore, the research delves into the optimal supply chain strategies under three distinct scenarios in the context of meteorological disasters. A comparative analysis is conducted to examine the decision-making variances and the shifts in the interests of each supply chain participant under these scenarios. The findings reveal two critical insights: First, meteorological disasters detrimentally affect the environmental friendliness of energy products, as well as the profits of both retailers and suppliers. Second, the selection of the optimal strategy varies depending on the evaluation criterion used. When product greenness is the metric, subsidies aimed at promoting sales costs emerge as the superior strategy. Conversely, for retailers and suppliers, subsidies that target the environmental friendliness of energy products prove to be the most effective. Based on the conclusions, the paper also makes recommendations for governments and companies.

Keywords: meteorological disasters; energy supply chain; government subsidies; product greenness; Stackelberg model (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: 2024
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