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Exploring the impact of government subsidy on technology innovation and pricing in green hydrogen supply chain

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  • He, Yong
  • Yuan, Jiaqi
  • Liao, Nuo

Abstract

Technology innovation is considered as a pivotal driver for cost reduction and efficiency enhancement within the green hydrogen industry. This study constructs a Stackelberg model to investigate the influence of government subsidy on technology innovation and pricing decisions within the green hydrogen supply chain. Numerical simulation analysis is performed to examine the impact of key parameters on decision variables within the green hydrogen supply chain. The results indicate that without technology innovation subsidy, the decision variables and profits of centralized decision-making are greater than those of decentralized decision-making at equilibrium. When the government provides subsidies without participating in the decision-making, the equilibrium decision values and profits of green hydrogen supply chain are greater than those without subsidy. When the government subsidy rate exceeds a specific threshold, it may result in a reduction in government's profit. Furthermore, the numerical simulation analysis reveals that consumers' sensitivity to technology innovation, government's technology innovation subsidy rate, and marginal revenue of technology innovation in green hydrogen all have significant impact on the equilibrium decision values and profits for all stakeholders. The findings could provide important reference for the advancement of green hydrogen industry.

Suggested Citation

  • He, Yong & Yuan, Jiaqi & Liao, Nuo, 2025. "Exploring the impact of government subsidy on technology innovation and pricing in green hydrogen supply chain," Energy, Elsevier, vol. 322(C).
    • Handle: RePEc:eee:energy:v:322:y:2025:i:c:s0360544225013775
    DOI: 10.1016/j.energy.2025.135735
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