Government Subsidy Strategies Considering Greenness on Agricultural Product E-Commerce Supply Chain

Fangfang Guo, Tao Zhang, Xiuquan Huang and Yaoguang Zhong ()
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Fangfang Guo: School of Economics and Management, Dongguan University of Technology, Dongguan 523808, China
Tao Zhang: Faculty of Humanities and Social Sciences, Macao Polytechnic University, Macau 999078, China
Xiuquan Huang: Faculty of Humanities and Social Sciences, Macao Polytechnic University, Macau 999078, China
Yaoguang Zhong: School of Business, Dongguan Polytechnic, Dongguan 523808, China

Mathematics, 2023, vol. 11, issue 7, 1-26

Abstract: Based on the Stackelberg game theory, this paper explores the incentive effects of five government subsidy strategies on agricultural products in e-commerce. A two-tier e-commerce supply chain of one farmer and one e-commerce platform is constructed to examine the impact of five different government subsidy strategies on the greenness of an agricultural product, the wholesale price, the selling price, and the profit of the supply chain. The results show that the effect of offering government subsidies is significant. Also, the direct subsidization from the government to a farmer has the maximum effect on the sales and greenness of the agricultural product. The results of this study provide policy implications for governments in establishing a sustainable mechanism through direct subsidization.

Keywords: Stackelberg game; government subsidies; agricultural products supply chain; greenness (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2023
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