IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v194y2025ics1366554524005234.html
   My bibliography  Save this article

Optimizing pricing for sustainable government-subsidized omnichannel closed-loop supply chains

Author

Listed:
  • Khorshidvand, Behrooz
  • Guitouni, Adel
  • Govindan, Kannan
  • Soleimani, Hamed
  • Talebi, Leila
  • Sibdari, Soheil

Abstract

In this study, we explore how government subsidies contribute to the adoption of environmentally sustainable practices in supply chains, focusing on pricing, green awareness, marketing, and recycling. We compare decentralized, centralized, and collaborative operational models, both with and without subsidies, and find that the green-cost-sharing collaborative model significantly enhances supply chain profitability. This model is more cost-effective for manufacturers and retailers than decentralized or centralized approaches and achieves higher green performance compared to the decentralized model. It also strengthens recycling efforts and enhances retailers’ multitasking capabilities within a closed-loop network. Furthermore, it delivers stakeholder satisfaction comparable to centralized models while requiring significantly less selling effort, and it outperforms decentralized models in operational efficiency. Additionally, we identify the equilibrium subsidy level that maximizes environmental efficiency across decentralized and collaborative frameworks. This research provides valuable insights for policymakers and strategists, contributing to both academic literature and practical applications.

Suggested Citation

  • Khorshidvand, Behrooz & Guitouni, Adel & Govindan, Kannan & Soleimani, Hamed & Talebi, Leila & Sibdari, Soheil, 2025. "Optimizing pricing for sustainable government-subsidized omnichannel closed-loop supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 194(C).
    • Handle: RePEc:eee:transe:v:194:y:2025:i:c:s1366554524005234
    DOI: 10.1016/j.tre.2024.103932
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554524005234
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2024.103932?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ren, Fuxia & Hu, Benyong, 2024. "Decisions and coordination in low-carbon supply chains with a wholesale price constraint under government subsidies," International Journal of Production Economics, Elsevier, vol. 277(C).
    2. Hao, Han & Geng, Yong & Sarkis, Joseph, 2016. "Carbon footprint of global passenger cars: Scenarios through 2050," Energy, Elsevier, vol. 101(C), pages 121-131.
    3. Arpita Roy & Shib Sankar Sana & Kripasindhu Chaudhuri, 2018. "Optimal Pricing of competing retailers under uncertain demand-a two layer supply chain model," Annals of Operations Research, Springer, vol. 260(1), pages 481-500, January.
    4. Heydari, Jafar & Govindan, Kannan & Aslani, Amin, 2019. "Pricing and greening decisions in a three-tier dual channel supply chain," International Journal of Production Economics, Elsevier, vol. 217(C), pages 185-196.
    5. Xu, Guangye & Dan, Bin & Zhang, Xumei & Liu, Can, 2014. "Coordinating a dual-channel supply chain with risk-averse under a two-way revenue sharing contract," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 171-179.
    6. Ma, Yechi & Sha, Yezhou & Wang, Zilong & Zhang, Wenjing, 2023. "The effect of the policy mix of green credit and government subsidy on environmental innovation," Energy Economics, Elsevier, vol. 118(C).
    7. Huang, Shuai & Fan, Zhi-Ping & Wang, Ningning, 2020. "Green subsidy modes and pricing strategy in a capital-constrained supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    8. Huang, Zongsheng & Zhao, Yingxue & Edwin Cheng, T.C. & Sethi, Suresh P., 2024. "Reverse channel selection in a dynamic stochastic closed-loop supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 192(C).
    9. Hosseini-Motlagh, Seyyed-Mahdi & Choi, Tsan-Ming & Johari, Maryam & Nouri-Harzvili, Mina, 2022. "A profit surplus distribution mechanism for supply chain coordination: An evolutionary game-theoretic analysis," European Journal of Operational Research, Elsevier, vol. 301(2), pages 561-575.
    10. Xu, Jiuping & Huang, Yidan & Shi, Yi & Li, Ruolan, 2022. "Reverse supply chain management approach for municipal solid waste with waste sorting subsidy policy," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    11. Wang, Yong & Jiang, Qiong & Guan, Xu & Guan, Xiangyang, 2023. "Recycling channel design and coordination in a reverse supply chain with customer green preference," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    12. Zhang, Mengyao & Gou, Qinglong & Yu, Lili & Zhang, Juzhi, 2022. "Pricing decisions for a social comparison product supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 168(C).
    13. Xu, Senyu & Tang, Huajun & Lin, Zhijun & Lu, Jing, 2022. "Pricing and sales-effort analysis of dual-channel supply chain with channel preference, cross-channel return and free riding behavior based on revenue-sharing contract," International Journal of Production Economics, Elsevier, vol. 249(C).
    14. Liu, Wenjie & Liu, Wei & Shen, Ningning & Xu, Zhitao & Xie, Naiming & Chen, Jian & Zhou, Huiyu, 2022. "Pricing and collection decisions of a closed-loop supply chain with fuzzy demand," International Journal of Production Economics, Elsevier, vol. 245(C).
    15. Hua, Jiawen & Lin, Jun & Wang, Kai & Liu, Guoquan, 2023. "Government interventions in new technology adoption to improve product greenness," International Journal of Production Economics, Elsevier, vol. 262(C).
    16. Barman, Abhijit & De, Pijus Kanti & Chakraborty, Ashis Kumar & Lim, Chee Peng & Das, Rubi, 2023. "Optimal pricing policy in a three-layer dual-channel supply chain under government subsidy in green manufacturing," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 204(C), pages 401-429.
    17. Maxime C. Cohen & Ruben Lobel & Georgia Perakis, 2016. "The Impact of Demand Uncertainty on Consumer Subsidies for Green Technology Adoption," Management Science, INFORMS, vol. 62(5), pages 1235-1258, May.
    18. Yingmiao Qian & Xian-An Yu & Malin Song & Zhiyang Shen, 2023. "Complexity analysis and control of game behavior of subjects in green building materials supply chain considering technology subsidies," Post-Print hal-03974946, HAL.
    19. Wang, Lanfang & Wang, Yue & Zhou, Jing, 2022. "Political connection,government R&D subsidies and innovation efficiency: Evidence from China," Finance Research Letters, Elsevier, vol. 48(C).
    20. Bian, Junsong & Zhao, Xuan, 2020. "Tax or subsidy? An analysis of environmental policies in supply chains with retail competition," European Journal of Operational Research, Elsevier, vol. 283(3), pages 901-914.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xia, Jing & Zheng, Yan & Yang, Lehe & Xiao, Yujie, 2024. "Government intervention in green technology innovation: The carrot, the stick or both?," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    2. Mu, Xiuqing & Kang, Kai & Zhang, Jing, 2022. "Dual-channel supply chain coordination considering credit sales competition," Applied Mathematics and Computation, Elsevier, vol. 434(C).
    3. Fan, Zhi-Ping & Cao, Yue & Huang, Chun-Yong & Li, Yongli, 2020. "Pricing strategies of domestic and imported electric vehicle manufacturers and the design of government subsidy and tariff policies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    4. Brozynski, Max T. & Leibowicz, Benjamin D., 2022. "A multi-level optimization model of infrastructure-dependent technology adoption: Overcoming the chicken-and-egg problem," European Journal of Operational Research, Elsevier, vol. 300(2), pages 755-770.
    5. Zhao, Meng & Li, Bin & Ren, Jiali & Hao, Zhihua, 2023. "Competition equilibrium of ride-sourcing platforms and optimal government subsidies considering customers’ green preference under peak carbon dioxide emissions," International Journal of Production Economics, Elsevier, vol. 255(C).
    6. Khorshidvand, Behrooz & Soleimani, Hamed & Sibdari, Soheil & Seyyed Esfahani, Mir Mehdi, 2021. "Revenue management in a multi-level multi-channel supply chain considering pricing, greening, and advertising decisions," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    7. Yoo, Seung Ho & Choi, Thomas Y. & Sheu, Jiuh-Biing, 2021. "Electric vehicles and product–service platforms: Now and in future," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    8. Chen, Ting & Xiong, Yu, 2024. "Product positioning of low-carbon products based on blockchain-enabled product communities," Technovation, Elsevier, vol. 132(C).
    9. Asl-Najafi, Javad & Yaghoubi, Saeed & Zand, Fatemeh, 2021. "Dual-channel supply chain coordination considering targeted capacity allocation under uncertainty," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 187(C), pages 566-585.
    10. Huang, Xingyu & Zheng, Pengjun & Liu, Guiyun, 2024. "Non-cooperative and Nash-bargaining game of a two-parallel maritime supply chain considering government subsidy and forwarder's CSR strategy: A dynamic perspective," Chaos, Solitons & Fractals, Elsevier, vol. 178(C).
    11. Li Liu & Zhe Wang & Jiangtao Xu & Zaisheng Zhang, 2023. "Green baton: how government interventions advance green technological innovation," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 11121-11152, October.
    12. Zhen, Zhiyuan & Jiang, Lan & Yan, Qiang, 2024. "The evolution of portfolio financing equilibrium in a risk-averse supply chain under a partial trade credit policy," Finance Research Letters, Elsevier, vol. 62(PA).
    13. Sun, Shuzhen & Liu, Tieming, 2023. "Pricing and sales-effort coordination facing free riding behaviors between a brick-and-mortar retailer and a platform store owned by the manufacturer," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    14. Mobin Zarreh & Saeed Yaghoubi & Hamideh Bahrami, 2024. "Pricing of Drinking Water under Dynamic Supply and Demand based on Government Role: A Game-Theoretic Approach," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 38(6), pages 2101-2133, April.
    15. Li, Zhengda & Zheng, Chengxin & Liu, Aimin & Yang, Yang & Yuan, Xiaoling, 2022. "Environmental taxes, green subsidies, and cleaner production willingness: Evidence from China's publicly traded companies," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    16. Jin, Wei & Yang, Jun & Wang, Chengfu, 2024. "Cost subsidy or environmental regulation? The effects of government interventions on environmental quality and 3BL performance," International Journal of Production Economics, Elsevier, vol. 270(C).
    17. Huang, Shuai & Cheng, Jian & Zheng, Wenxin, 2024. "The impacts of environmental benefit concern of enterprises on competitive supply chain economic and environmental benefits," Applied Energy, Elsevier, vol. 374(C).
    18. Golmohammadi, Amirmohsen & Kraft, Tim & Monemian, Seyedamin, 2024. "Setting the deadline and the penalty policy for a new environmental standard," European Journal of Operational Research, Elsevier, vol. 315(1), pages 88-101.
    19. Xu, Xiaoping & Chen, Xinyang & Choi, Tsan-Ming & Cheng, T.C.E., 2024. "Platform financing versus bank financing: “When to choose which” for green production systems," European Journal of Operational Research, Elsevier, vol. 317(2), pages 515-532.
    20. Syed Asif Raza, 2020. "Price Differentiation and Inventory Decisions in a Socially Responsible Dual-Channel Supply Chain with Partial Information Stochastic Demand and Cannibalization," Sustainability, MDPI, vol. 12(22), pages 1-42, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:194:y:2025:i:c:s1366554524005234. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.