Green financing strategies under risk aversion and manufacturer competition

Abstract

In order to address the financial constraints of enterprises to promote green R&D and industrial green transformation, this study investigated a competitive supply chain consisting of a retailers, a general manufacturer, and a capital-constrained green manufacturer under risk aversion and capital shortage. It established models with and without capital constraints, retailer financing, and bank financing for the green manufacturer and retailer under risk aversion, and explored how the green competitive supply chain could obtain optimal financing strategies. The research findings are as follows: (1) When the financing interest rates are equal, the green manufacturer should prefer the retailer financing model, and regardless of the financing method, the increase in interest rates is extremely detrimental to retailers. (2) The increase in the degree of risk aversion of the green manufacturer is not conducive to the long-term development of competitors and itself, but is beneficial to the retailer, but it will cause further instability in the market. However, the increase in the degree of risk aversion of the retailer is only detrimental to itself and beneficial to the supply chain partners.