Analysis on the Optimal Subsidy Strategy of Government in Green Supply Chain

Chang Fei Jin; Xin Wang; Li Jun Mei

doi:10.4028/www.scientific.net/AMR.224.147

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The Research on the Sustainable Development of Chinese Rural Cultural Architecture
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Long Age Mechanical Properties and Application of Self-Compacting Concrete
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Analysis on the Optimal Subsidy Strategy of Government in Green Supply Chain
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Multicriteria Evaluation of the Selection of Green Glazing Material by Using the Analytic Hierarchy Process (AHP)
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Continuum Method and Effect Analysis of Energy Dissipation System for High-Rise Shear-Wall Structure
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HomeAdvanced Materials ResearchAdvanced Materials Research Vol. 224Analysis on the Optimal Subsidy Strategy of...

Analysis on the Optimal Subsidy Strategy of Government in Green Supply Chain

Abstract:

In order to study the role that the government played in the green supply chain, we constructed a supply chain model by two kinds of manufacturers, consumers and government environmental fund, on this basis, the optimal government subsidies and products' optimal production and price were obtained by game theory and utility function. Then, according to the results of numerical example we draw the conclusion that if the government adopts optimal subsidies policy, social welfare will be substantially increase, and the demand for green products will rise too, on the other side, the prices will be bring down. It is shown that with the guidance of the government subsidy mechanism, the green supply chain will be on the track that is conducive to the rapid development of environmental protection.