Abstract
The green supply chain (GSC) can effectively reduce the waste of resources and avoid environmental pollution. For a closed-loop supply chain network consisting of multiple manufacturers, multiple retailers, and multiple consumer and recycling markets, we assume that retailers are responsible for the recycling of used products, manufacturers use raw materials to produce new products and recycled products for remanufacturing, and government departments subsidize all manufacturers and retailers for GSC technology investment. Then, the equilibrium conditions of manufacturers, retailers, demand markets, and recycling markets are obtained by using the variational inequality method, complementarity theorem, and Nash equilibrium theory, and the variational inequality model of the closed-loop supply chain network multiphase equilibrium is established. Based on numerical simulation, the optimal technology investment decision of green supply chain under different government subsidy rates, and the influence of market structure and enterprise cost asymmetry on the equilibrium solution of supply chain network are analyzed. The results show that government subsidies can effectively promote enterprises to upgrade their level of GSC technology investment. The intensification of enterprise competition and the asymmetry of enterprise costs will affect the composition of enterprise profits and the allocation of profits between enterprises, and the former will weaken the effect of government subsidies.
Highlights
The green supply chain (GSC), which aims to reduce resource waste and environmental pollution, has recently attracted extensive attention from both academia and industry
The decision of retailer n will involve deciding the quantity of product and used materials traded with manufacturers, the volume of product and used product traded with customers in all markets, the inventory in every period, and the green degree of its supply chain, which aims to maximize its profit
Green subsidies are classified as non-actionable subsidies by the Agreement on Subsidies and Countervailing Measures (SCM) implemented and allowed by the World Trade Organization (WTO), and the member who suffered from the subsidies cannot appeal to the Dispute Settlement Body (DSB) or implement corresponding countervailing measures
Summary
The green supply chain (GSC), which aims to reduce resource waste and environmental pollution, has recently attracted extensive attention from both academia and industry. Shanghai launched a GSC project plan in 2016, granting 30–50% financial subsidies to enterprises which have declared and been approved an energy-saving and emission reduction project. These measures are yet to be promoted nationwide. GSC investment may increase the cost and accounting risk of enterprises in the short-term but, in the long-term, it can save costs, increase profits, and enhance the competitiveness of enterprises due to the expansion of demand for green products driven by the improvement of consumers’ environmental awareness. This paper attempted to resolve the dilemma encountered by SMEs in GSC technology investment, studied from the perspective of government subsidies, in order to achieve long-term stable and sustainable development of the economic, social, and ecological environment.
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