Research on Two-Echelon Green Supply Chain Decision under Government Subsidy
- 1 School of Business and Administration, South China University of Technology, Guangzhou, China
- 2 School of Business and Administration, South China University of Technology, Guangzhou, China
- 3 School of Business and Administration, South China University of Technology, Guangzhou, China
Abstract
With the background of government subsidies and increasing consumer environmental awareness, this article establishes a two-echelon supply chain model of manufacturer and retailer. Based on this model, this article analyzes the decision-making problems of manufacturer and retailer under both decentralized and centralized decision modes, and the impact of consumer green sensitivity on product pricing, green degree and other decisions. The results show that government subsidies, higher consumer green sensitivities are conducive to green product promotion and members of decentralized decision supply chain, but higher consumer green sensitivity will reduce the overall supply chain profit in a centralized decision mode. Finally, this paper discusses the design of supply chain contract mechanism in decentralized decision mode to achieve supply chain coordination.
- Menges, R. (2003) Supporting Renewable Energy on Liberalized Markets: Green Electricity between Additionality and Consumer Sovereignty. Energy Policy, 7, 583-596. https://doi.org/10.1016/S0301-4215(02)00144-1
- Bowen, F.E., Cousins, P.D., Lamming, R.C., et al. (2001) The Role of Supply Management Capabilities in Green Supply. Production and Operations Management, 10, 174-189. https://doi.org/10.1111/j.1937-5956.2001.tb00077.x
- Li, Y.N. and Ye, F. (2011) Institutional Pressures, Environmental Innovation Practices and Firm Performance—An Institutional Theory and Ecological Modernization Theory Perspective. Studies in Science of Science, 29, 1884-1894.
- Eriksson, C. (2004) Can Green Consumerism Replace Environmental Regulation? A Differentiated-Products Example. Resource and Energy Economics, 3, 281-293. https://doi.org/10.1016/j.reseneeco.2003.10.001
- Zhu, Q.H. and Dou, Y.J. (2007) An Evolutionary Model between Governments and Core-Enterprises in Green Supply Chains. Systems Engineering Theory and Practice, 12, 85-89.
- Cohen, M.C., Lobel, R. and Perakis, G. (2015) The Impact of Demand Uncertainty on Consumer Subsidies for Green Technology Adoption. Management Science, 9, 1-24.
- Conrad, K. (2005) Price Competition and Product Differentiation When Consumers Care for the Environment. Environment and Resource Economics, 31, 1-19. https://doi.org/10.1007/s10640-004-6977-8
- Liu, Z., Anderson, T.D. and Cruz, J.M. (2012) Consumer Environmental Awareness and Competition in Two-Stage Supply Chains. European Journal of Operational Research, 218, 602-613. https://doi.org/10.1016/j.ejor.2011.11.027
- Zhang, L.H., Wang, J.G. and You, J.X. (2015) Consumer Environmental Awareness and Channel Coordination with Two Substitutable Products. European Journal of Operational Research, 241, 63-73. https://doi.org/10.1016/j.ejor.2014.07.043
- Mitra, S. and Webster, S. (2008) Competition in Remanufacturing and the Effect of Government Subsidies. International Journal of Production Economics, 111, 287-298. https://doi.org/10.1016/j.ijpe.2007.02.042
- Cohen, M.C., Perakis, G. and Thraves, C. (2015) Competition and Externalities in Green Technology Adoption. Working Paper. Massachusetts Institute of Technology, Cambridge. https://doi.org/10.2139/ssrn.2607688
- Ling, L.Y., Dong, H.X. and Liang, L. (2012) Analysis of Monopoly Market for Green Products from the Perspective of Government Subsidies. Operations Research and Management Science, 21, 139-144.