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Input subsidy versus output subsidy for green R&D in a supply chain

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  • Yanfang Zhang
  • Qianwen Tan
  • Yuchang Ji

Abstract

This paper investigates the effects of the government's input subsidy and output subsidy in a green supply chain with a manufacturer and a retailer. We find the input subsidy does not necessarily give rise to a higher R&D input, while the output subsidy does not necessarily lead to a higher output. The comparison is strongly dependent on the externality of the production and consumers' environmental awareness.

Suggested Citation

  • Yanfang Zhang & Qianwen Tan & Yuchang Ji, 2023. "Input subsidy versus output subsidy for green R&D in a supply chain," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(1), pages 97-126, January.
    • Handle: RePEc:wly:jintdv:v:35:y:2023:i:1:p:97-126
    DOI: 10.1002/jid.3676
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    References listed on IDEAS

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    Cited by:

    1. Xing Gao & Ying Wang, 2023. "Competitive analysis of R&D investment with R&D budget constraint and R&D uncertainty," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2438-2456, June.

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