Abstract
This study introduces the externalities of green food production and related theories. Production games between enterprises in the market proved that without government regulation, enterprises would abandon the green manufacturing strategy due to the high costs but low profits associated with it resulting, a decrease in social welfare. Through the evolutionary game between enterprises and the government, the importance of government’s role in internalizing the externalities associated with the food manufacturing is magnified. Therefore, the coordination between the government, enterprises and consumers is needed to internalize the environmental externalities in the manufacturing industries such as the food manufacturing sector to insure the realization of a green growth path in the near future.
Highlights
In recent years, food safety issues have started to attract attention
We think one important factor is the high cost of the ecological environment of green food production, as it requires good ecological environment and restricts or prohibits the use of pesticides, fertilizers, hormones, antibiotics, genetically modified technology in the production process, so it increase the production cost and while the processing, storage packaging require absolute safety and environmental protection (Cuperus et al, 1999), in addition the cost of the ecological environment is very difficult to cash through the market, which seriously affected the enthusiasm of green food producers and restricted the development of green food
Negative externalities like resources waste and environmental damage are not limited caused by traditional production enterprises, while positive externalities of green food production enterprises are not protected which results in reduction of social welfare
Summary
Food safety issues have started to attract attention. At present, the concept and realization of green food still in the early stages of development (Wang, 2001). Green food enterprises could optimize resource utilization and production management, its costs would be increased considering its design, production, packaging, transport and sales under the current technology condition. Negative externalities like resources waste and environmental damage are not limited caused by traditional production enterprises, while positive externalities of green food production enterprises are not protected which results in reduction of social welfare.
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