Abstract
With the expanding awareness of worldwide governments to ecological issues, the idea of protecting the environment has been initiated into the supply chain. The role of government in green supply chain management has become especially significant. This paper proposes a green supply chain model with a duopoly structure, in which two manufacturers separately produce green and non-green items sold through a common retailer. The government looks for social advantages and decides subsidies for the green item and taxes for non-green items. Using a centralized and decentralized model, two cases of government interference and no government interference are analyzed with customer green preference. This study focuses on exploring the pricing strategy, greening strategy and comparing the optimal decisions in all the cases to maximize the overall profitability of the supply chain. Numerical results and sensitivity analysis illustrate how the government subsidy on green products and tax policy in non-green products can influence the profitability of supply chain members. The research finding can give valuable experiences to channel members of the supply chain to settle optimum choices with and without government interference by enhancing the green and non-green item market competition. Among the competitive duopoly structure, the centralized model makes more profit and leads to manufactured eco-friendly items.
Highlights
The main theme of this paper is to investigate the impact of government subsidy on the pricing and greenness level decision of a green duopoly supply chain, and further study what type of subsidy can advance the improvement of green items proficiently
To solve collaborative pricing and greening strategies of common regular non-green items and green items with government interference, as well as without government interference, this study addresses two decision models of a duopoly green supply chain, considering multiple manufacturers and a single retailer
It is observed from the result that, firstly, compared to the model without government interference, under the model with government interference, manufacturer’s and retailer’s sales price of the green items has increased; simultaneously, regular non-green item sales price has been decreasing
Summary
Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. The main theme of this paper is to investigate the impact of government subsidy on the pricing and greenness level decision of a green duopoly supply chain, and further study what type of subsidy can advance the improvement of green items proficiently. By the pollution tax collection, which is a circuitous procedure, the government charges organizations for delivering every unit of item that forces pollution on climate in excess of a standard level. How do the constructions of the supply chain influence the benefits of manufacturers, retailers governments, and the green level of green items?. (c) What are the effects of government subsidy and imposing a tax on the manufacturer on the greening level, the retail cost, and the expected benefits of the players?.
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