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Impact of government financial intervention on competition among green supply chains

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  • Sheu, Jiuh-Biing
  • Chen, Yenming J.

Abstract

This work analyzes the effects of governmental financial intervention on green supply chain competition using a three-stage game-theoretic model. Nash equilibrium solutions for governmental and chain member decisions are derived. Analytical results suggest that the government should adopt green taxation and subsidization to ensure that green profit attributed to green-product production is non-negative. Strategically, low-wholesale-price strategies are suggested to recycled-component suppliers under green subsidization to stimulate manufacturers' intention of green product production under green taxation. Numerical results reveal that under equilibrium conditions, social welfare and chain-based profits improve by 27.8% and 306.6%, respectively, compared with the case without financial intervention.

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Bibliographic Info

Article provided by Elsevier in its journal International Journal of Production Economics.

Volume (Year): 138 (2012)
Issue (Month): 1 ()
Pages: 201-213

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Handle: RePEc:eee:proeco:v:138:y:2012:i:1:p:201-213

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Web page: http://www.elsevier.com/locate/ijpe

Related research

Keywords: Green supply chain management; Economic incentives; Game theory;

References

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Cited by:
  1. Jiuh-Biing Sheu, 2014. "Green Supply Chain Collaboration for Fashionable Consumer Electronics Products under Third-Party Power Intervention—A Resource Dependence Perspective," Sustainability, MDPI, Open Access Journal, vol. 6(5), pages 2832-2875, May.
  2. Chen, Jen-Ming & Chang, Chia-I, 2013. "Dynamic pricing for new and remanufactured products in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 146(1), pages 153-160.

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