Abstract
With the background of government subsidies and increasing consumer environmental awareness, this article establishes a two-echelon supply chain model of manufacturer and retailer. Based on this model, this article analyzes the decision-making problems of manufacturer and retailer under both decentralized and centralized decision modes, and the impact of consumer green sensitivity on product pricing, green degree and other decisions. The results show that government subsidies, higher consumer green sensitivities are conducive to green product promotion and members of decentralized decision supply chain, but higher consumer green sensitivity will reduce the overall supply chain profit in a centralized decision mode. Finally, this paper discusses the design of supply chain contract mechanism in decentralized decision mode to achieve supply chain coordination.
Highlights
Since the Industrial Revolution, various industries experienced rapid development, and human’s material life has been greatly facilitated and enriched, at the same time, people are confronted by the problems of resource shortage, environmental pollution, global warming and so on
The results show that government subsidies, higher consumer green sensitivities are conducive to green product promotion and members of decentralized decision supply chain, but higher consumer green sensitivity will reduce the overall supply chain profit in a centralized decision mode
This paper considers a two-level supply chain system with government’s participation, which consists of a manufacturer of green products and a retailer
Summary
Since the Industrial Revolution, various industries experienced rapid development, and human’s material life has been greatly facilitated and enriched, at the same time, people are confronted by the problems of resource shortage, environmental pollution, global warming and so on. The development of green technology and promotion of green products have become important. Governments all over the world have launched fiscal and taxation policies to promote the development of green technology and products. The rest of the paper is organized as follows.
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