Green product diffusion and innovation in supply chains

Takuro Miyamoto

Environmental Economics and Policy Studies, 2023, vol. 25, issue 3, No 2, 353 pages

Abstract: Abstract We construct a two-stage Stackelberg model in which suppliers produce marginal cost-intensive green products and compare the diffusion of green products and social surplus in different supply chain networks with and without environmental product standards. From the perspective of green product diffusion and social surplus, the more sellers there are in both wholesale and retail markets, the better. However, if only one of the markets becomes competitive, the effect is the same whether the competitive market is retail or wholesale. In addition, green products are more prevalent and social surplus greater if both markets are moderately competitive rather than if competition is fierce in only one of them. We also show that it is better to moderately spread ecoproducts than to distribute the most ecoproducts by standards if the ecofriendliness of the product does not attract consumers but its “social” benefit is high.

Keywords: Green product diffusion; Green product innovation; Green supply chain management (search for similar items in EconPapers)
JEL-codes: Q55 Q58 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10018-023-00359-z

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