Marginal Returns Research Articles

Research on Government Dynamic Strategies for Mining Technology Investment of Mineral Resource Enterprises

As a large mineral resource consuming country, it is of great strategic significance to effectively improve the efficiency of China’s mineral resource exploitation and reduce the waste of exploitation to achieve sustainable development. The purpose of this paper is to examine how governments can incentivize enterprises to invest in mining technology to improve mineral resource recovery rates under both process subsidy policy and outcome incentive policy, and to comparatively analyze which policy is more effective in increasing mineral resource enterprises’ investment in mining technology. We construct a differential game model of the government’s incentive policy for mining technology investment in mineral resource enterprise. The results show the following. (1) For mineral resources with low marginal returns, both process subsidy and outcome incentive policies can encourage the enterprise to increase investment in mining technology. (2) For scarce strategic resources, the process subsidy policy has a better incentive effect when the marginal returns of mineral resources are high, and the outcome incentive policy has a better incentive effect when the marginal returns are low. (3) Mineral resource enterprise has higher recovery rates under the process subsidy policy.

A Study on the Impact of Water Resource Tax on Urban Water Ecological Resilience

Urban water ecology has important ecological functions, such as urban ecological security, pollution purification and rain-flood regulation. Enhancing urban water ecological resilience (UWER) is a key approach to advancing urban water ecological governance, and a water resource tax (WRT) is an important measure for protecting the water ecological environment. On the basis of data from 264 prefecture-level cities and above from 2009 to 2021, this paper constructs an indicator to measure UWER and analyzes the impact of a WRT on UWER via the time-varying DID model. The study reveals that the implementation of a WRT significantly enhances UWER, but the effect shows diminishing marginal returns and insignificant long-term effects. However, spatial analysis indicates that a WRT has a positive spatial spillover effect on urban water ecology, enhancing the UWER of surrounding cities. Additionally, the heterogeneity analysis of different cities indicates that a WRT has a notably stronger impact on cities located on provincial borders, resource-based cities and small- to medium-sized cities. This study provides a new perspective on improving UWER and offers important references for further improving WRT policies.

Agricultural Land Rental Arrangements in Nepal: Incidence, Forms, Determinants, and the Current Legal Provisions

Given the fragmented and small size of land holdings in Nepal, the viability of crop production is a pressing concern. Rental or tenancy arrangements, which equalise marginal returns from factors of production across households, offer a solution to this viability crisis. In this context, our study is unique as it not only examines the incidence and forms of tenancy, but also identifies the determinants of the land leasing decision of rural households, and discusses their implications for agrarian development in Nepal. Drawing on primary survey data from 350 households in six districts of plains and hills, we provide evidence of the widespread prevalence of informal tenancy in Nepal. Despite locational variations explained by the location-specific cropping patterns, sharecropping and fixed-rent are found to be the primary forms of tenancy contracts. A Tobit regression analysis identifies certain household level, farm level, and location-specific characteristics as important factors influencing land leasing decisions. Our analysis suggests that the land supply in the land lease market may increase in the future, and therefore, it is pertinent to examine the legal provisions that govern the use of such lands. Hence, we also examine the legal provisions concerning tenancy relations.

Does peers' credit behavior affect smallholder farmers’ credit and savings decisions? Evidence from the northern region of Ghana

Access to credit remains a major challenge in developing countries, leading to increased poverty levels and low savings. Despite the importance of social networks and social support systems, the literature has not considered the link between peer credit on one hand and own credit and savings on the other. This paper examines the effect of peer credit on farmers (own) credit and savings using cross-sectional data from 400 farm households in northern Ghana. The study employed a spatial Durbin model (SDM) and the control function approach to identify the network effects. The results show that an increase in the share of farmers’ peers with credit, increases own credit access but leads to a decline in savings. This implies the presence of endogenous effects on credit, but no evidence of contextual effects was found. The results further show some heterogeneities in the effect of peer credit but with diminishing marginal returns to own credit. The study recommends that to promote credit access, financial institutions must focus on farmers with high-network credit. They should also ensure the sustainability of credit among farmers to improve savings. The study underscores the importance of cohesive networks in promoting credit access among farmers, therefore key stakeholders such as the government, religious and traditional authorities as well as political and civil society organizations must collaborate in their efforts to promote social cohesion by minimizing civil disputes and conflicts. This will ensure that farm households in developing communities continue to benefit from social network support.

Measuring Total Factor Productivity in General Technical Progress Framework

The classical Solow's total factor productivity accounting assumes that technical progress is Hicks neutral, which is a special situation in the reality of world economy. This paper expands the setting of technical progress into general technical progress framework, which can cover Hicks neutral technical progress, Harrod neutral technical progress, Solow-neutral technical progress, and various factor-biased technical changes. According to the principle of statistical index number, this paper decomposes the output index into a total factor input index and a total factor productivity index, and adopts normalized CES production function with factor-augmenting technical progress to derive the calculation formulas of the total factor input index and the total factor productivity index, and constructs a new economic growth accounting system, and finds the counteraction and compensation mechanism for diminishing marginal returns. If the factor substitution elasticity is 1 or there is no technical progress bias and factor allocation bias, then the new accounting equation degenerates into the classic Solow growth accounting equation. The new accounting system can measure the influence of total factor input and total factor productivity to economic growth, but also can measure the influences of factor input intensity and factor allocation bias in the growth rate of total factor input, and the influences of technical progress intensity and technical progress bias in the growth rate of total factor productivity. Therefore it is more precise and accurate than classical method.

Within-game uncertainty of outcome and the demand for professional basketball on television

This paper provides one of the first tests of the within-game uncertainty of outcome hypothesis. We examine the relationship between the demand for nationally televised regular season NBA basketball viewing and outcome uncertainty while the games are being played. We use granular television viewing and scoring data and account for the dynamics of television viewing. We find evidence of modest but statistically significant effects of outcome uncertainty on the size of the TV viewing audience which occur largely at the end of the game, supporting the uncertainty of outcome hypothesis. These effects are subject to diminishing marginal returns. We also find evidence of a sizable independent loss of viewers at halftime and the end of games that is unrelated to outcome uncertainty.

The carbon emission reduction benefits of the transformation of the intensive use of cultivated land in China

The transformation of the intensive use of cultivated land has an important impact on agricultural carbon emissions (ACE). However, the existing research on the impact mechanisms of the transformation of intensive use of cultivated land on carbon emissions is not clear. In view of this, this study constructs the impact mechanism of the transformation of intensive use of cultivated land on carbon emissions from the perspective of production factors substitution based on the theory of induced technological change and the theory of marginal returns. Using the Cobb-Douglas production function, this study identifies the transformation patterns of intensive use of cultivated land in China from 1980 to 2021. Furthermore, this study simulates the carbon emission reduction benefits brought about by the transformation of the intensive use of cultivated land by considering the cost of agricultural production. The results show that, first, from 1980 to 2021, the price of agricultural labor increased by 224.10%, while the price of other agricultural production factors significantly decreased. China's intensive use of cultivated land methods has undergone four stages: agricultural labor–intensive (ALI), yield–enhancing factor–intensive (YEFI), labor–saving factor–intensive (LSFI), and innovation factor–intensive (IFI). In 2021, most of China's provinces were in the YEFI or ALI stages. Second, between 1993 and 2021, the transformation of China's intensive use of cultivated land brought about an 87.48% increase in carbon emissions, while the spatial clustering effect of carbon emissions weakened. Furthermore, the results show that, the transition of the use of cultivated land from ALI to YEFI and YEFI to LSFI will reduce carbon emissions by 7.89%, and input factors costs will increase by 23.85%. If all regions, except for those in the IFI stage, transition to the LSFI model, it will result in a 17.56% reduction in carbon emissions, with a corresponding increase of 33.40% of the input factors input costs. This research enriches the theoretical foundation of literature about the transformation of the intensive use of cultivated land. It also expands the research perspective on agricultural carbon emissions. This research also helps provide references for the direction of the transformation of the intensive use of cultivated land in China and the achievement of the dual carbon goals.

Eddison Walters Self-Employment Tax Modernization Reform Entrepreneurship Revitalization Negative Marginal Returns Adjustment Theory: Tax Reform for Forgotten American Workers That Will Increase Tax Revenue in Today’s Technological Driven Economy

Technological advancement's impact has significantly affected the entire United States economy, including the increasing self-employment tax burden for many Americans struggling to keep their head above water. Small business failure continues while many Americans see self-employment tax burden increase. The number of business failures started outpacing new business startups in 2008, coinciding with the Global Financial Crisis. Research in the Literature presented evidence that technological advancement was the most significant factor causing the housing price increase facing the country today. The false conclusion that the United States economy experienced a housing bubble in the past was because policymakers did not understand that once local housing markets transformed into global housing markets through technological transformation between 1995 and 1999. Because the trend of failure of small business coincided with the Global Financial Crisis the evidence suggested there are questions policymakers need to understand about how technological advancement has influenced economic policy failures. The impact of technological advancement on the increasing burden of self-employment taxes for many hardworking Americans is also a topic of consideration for policymakers as tax reform policies become a priority of the incoming Trump Administration. Many policymakers stuck in their thinking of policy positions based on the past have yet to consider the need to adopt new policies as the country moves into the new age of information technology. Policymakers have debated wage stagnation and approaches to increasing working families' income in the United States. Still, they have yet to consider self-employment tax reform policies as an option to expand the middle class. Many policymakers have not considered how employment has evolved because of technological advancement and the gig economy. Policies aimed at adjusting to the technologically driven economy can help lift families into the middle class as the country adapts to today's technologically driven economic environment. Many on the political Left have called for a minimum wage increase to lift families into the middle class. At the same time, the Right argues that employers will pass the cost along to customers or reduce labor costs through automation, which will eliminate jobs. The study by Gindling (2024) concluded that increasing the minimum wage has a marginal impact on decreasing poverty, so there are more practical solutions than increasing the minimum wage. Policies that can help the economy flourish in the new technological advancement-driven information economy are critical to the debate. Eddison Walters Self-Employment Tax Modernization Reform Entrepreneurship Revitalization Negative Marginal Returns Adjustment Theory highlights the need to adopt self-employment tax reform policies to encourage entrepreneurship and facilitate economic growth as the American economy adapts to the technological advancement-driven economy.

Is digital transformation profitable for banks? Evidence from Europe

Studies on the impact of digital transformation (DT) on bank performance are typically restricted to single countries and present mixed findings. Using data on 279 EU-27 banks from 2017 to 2022 and employing a novel DT index, we demonstrate that DT is associated with higher bank profitability, and that IT and network efficiency are key drivers. Furthermore, Covid-19 and the level of country IT positively moderate this relationship. Interestingly, additional analyses also reveal nonlinear relationships, which suggest that profitability gains from DT investments can take time to materialize and that there are diminishing marginal returns to some DT investments.

Student preferences over module design

In this paper we use new experimental data to investigate students’ preferences regarding lecture mode and length, and assessment type across two unique dimensions: expected learning and enjoyment. Our main findings are as follows: first, students demonstrate a strong preference against online lectures. Students expect to learn more from, and enjoy, modules that have in-person lectures. Given that one-third of lectures in UK universities are now taught online—up from 4 percent before the pandemic—these results indicate a misalignment with students’ preferences. Second, students favour shorter lectures (1 h) over longer lectures (2 h). Students do not expect to learn more from longer lectures—suggesting diminishing expected marginal returns. Third, students prefer individual assignments to exams. Students expect to enjoy and learn more from modules that have individual assignments (as opposed to exams). These findings are robust across two samples of university students.

“Love thy neighbor, but don’t pull down your hedge”: The influence of interdependence with major customers on supplier productivity

This research examines how mutual and relative dependence on major customers impact supplier productivity. We investigate two research questions: (1) Does the extent of mutual dependence between a supplier and its major customer base exhibit a non-linear impact on supplier productivity? (2) How does the combined influence of the supplier’s relative dependence and mutual dependence on major customers affect supplier productivity? Using major customer relationship data from Compustat segment files, we construct a longitudinal dataset in the manufacturing industry for the period 1998–2017. We estimate supplier productivity accounting for selection bias and employ the fixed effect regression approach to examine the effects of mutual dependence and relative dependence on supplier productivity. Moreover, we address potential endogeneity in the model with the control function approach. Our results indicate an inverted curvilinear relationship between a supplier’s mutual dependence on its major customers and its productivity: While increased mutual dependence initially enhances productivity, the marginal returns diminish. Interestingly, the curvilinear effect becomes more prominent when the supplier’s relative dependence increases. Our study’s findings offer three best-practice strategies including (1) spread and anchor risk, (2) reduce relative dependence, and (3) deepen customer understanding, all of which help suppliers manage the interdependence in major customer relationships.

Diminishing marginal returns and sufficiency in health-care resource use: an exploratory analysis of outcomes, expenditure, and emissions

Increasing health expenditure in low-income countries is associated with rapid gains in health status. Less attention has been paid to the possibility of diminishing marginal returns to health expenditure at high levels of spending, or to the relationship between health-care greenhouse gas emissions and outcomes. Our study aimed to investigate the existence, scale, and implications of diminishing marginal returns to health-care expenditure and emissions. Segmented (piecewise) regression analysis was used to explore the relationship between two measures of health outcome from the Global Burden of Disease project (mortality amenable to health care [MAH] and health-adjusted life expectancy [HALE]), four aggregates of health expenditure per capita from the WHO Global Health Expenditure Database, and health-care sector greenhouse gas emissions per capita derived from a 2020 study by Lenzen and colleagues. Turning point knots-points at which the elasticity or velocity of increasing returns to expenditure and emissions changed substantially-were estimated and countries in the vicinity of these knots identified. Rapidly increasing returns (improvements in population health as measured by MAH and HALE) to health expenditure were estimated in low-income and lower-middle-income countries; at levels of spending above approximately US$500 per capita, these returns start to slow. At levels of spending above those seen in high-income countries such as Italy (approximately US$3400), there is little or no evidence of further health returns to additional spending or to increasing health-care greenhouse gas emissions. Dramatic improvements in population health outcomes could be achieved by additional investment in health expenditure in low-income countries. Conversely, continuing growth in health expenditure in high-income countries will, by itself, be unlikely to yield rapid improvements in health outcomes. Our findings inform the emerging debate on the importance of sufficiency within planetary boundaries-low-income countries need rapid growth in health expenditure, whereas high-income countries could potentially achieve better health outcomes at substantially lower levels of resource use. None.

Influence of Nitrogen and Phosphorus Fertilizers Applications for Tomato (<i>Solanum lycopersicum </i>L.) Production Under Irrigation in the Fogera District, Northwest Ethiopia

Small-scale tomato production under irrigation is a common practice in the Fogera area of the Amhara Region in Northwest Ethiopia. However, there were no location-specific economic optimum N and P fertilizer recommendations for tomato production in the area. Therefore, a field study was conducted in 2020 and 2021 to investigate the response of tomato to N and P fertilizer applications and determine the economic return of N and P fertilizers applications. Four levels of N (0, 46, 92, and 138 kg N ha<sup>-1</sup>) and three levels of P (0, 46, and 92 kg P<sub>2</sub>O<sub>5</sub> ha<sup>-1</sup>) were factorially combined and laid in a randomized complete block design with three replications. The results revealed that tomato yield and yield-related attributes were significantly (p<0.01) affected by the main effects of N. However, the main effect of P and its interaction with N did not considerably influence the yield and yield-related parameters. The highest marketable (39.3 t ha<sup>-1</sup>) and total fruit yields (46.2 t ha<sup>-1</sup>) of tomato were recorded from the application of 138 kg N ha<sup>-1</sup>. The highest net economic return of Ethiopian birr 185,538.50 with a marginal rate return of 1326.1% was recorded from the application of 138 kg N ha<sup>-1</sup>. Therefore, 138 kg ha<sup>-1</sup> N can be recommended to increase the yield and economic return of tomato production in Fogera area. However, as the yield response to N followed a linear response curve, further study with higher rates of N than those considered in the present study is recommended.

Addressing the reliability challenge: Subsidy policies for promoting renewable electricity consumption

The intermittency and volatility of renewable electricity pose challenges to supply reliability, which is not conducive to renewable energy consumption. To ensure a reliable electricity supply, more governments implement subsidy policies to promote the adoption of innovative technologies by renewable energy producers to enhance supply reliability. We compare two types of subsidies provided by a government: investment subsidy (IS) policy, which is implemented in the deployment stage to directly reduce improvement costs, and operational subsidy (OS) policy, which is implemented in the operational stage to increase the renewable energy producer’s marginal returns. First, we show that without government intervention, customers’ low green consciousness or higher improvement costs may prevent the renewable energy producer from enhancing supply reliability. Second, through a comprehensive comparison, we find that both subsidy policies can incentivize the renewable energy producer to improve supply reliability when customers are more green-conscious, and the improvement cost is high. However, the OS policy and the IS policy operate on different mechanisms: the IS policy can directly alleviate the improvement cost burden on the renewable energy producer, while the OS policy serves a dual role of increasing the renewable energy producer’s marginal operational profit and expanding the market demand for renewable electricity. When customers’ green consciousness is low, the government can only choose whether or not to implement the OS policy. Finally, we highlight that the implementation of the IS policy by the government may not be more beneficial to both the renewable energy producer and customers compared to the OS policy. This result informs regulators that energy security should be considered when designing subsidy policies and should not be limited to promoting the interests of participants.

The behavior evolution and case simulation of water rights trading in water transfer projects

ABSTRACT Due to the difference in the economic and social development level of each area of the water transfer project, there will be a lack of water resources in some areas, while water resources in some other areas have a surplus, resulting in the imbalance of water resources. However, the transaction willingness of both parties is not strong, and the seller has the psychology of “reluctant to sell”. The buyer hopes to make free water allocation through the government. The paper analyzes the feasibility and influence of solving the imbalance of water resources in water transfer projects through the market mechanism by the evolutionary game approach. The water right transaction between Zhengzhou and Nanyang in the middle route of the South-to-North Water Transfer Project is taken as a case for simulation. The study shows t: the lower the marginal return of the water resources in the water-rich area is, the higher the water-scarce area is, the easier to promote water rights trading; the higher the environmental and social benefits for both parties are, the easier the water rights trading; the lower the transaction cost of both parties is, the easier the water rights trading.

Carcass Characteristics and Blood Biochemical Parameters of Cobb-500 and Hubbard Chicken Strains Fed on Commercial and Farm-Formulated Diets

The limits of commercial diets, their quality, and their rising costs are some of the major challenges to broiler production in Ethiopia. The purpose of this investigation was to evaluate carcass yield characteristics and blood biochemical parameters of Cobb-500 and Hubbard chicken strains fed on farm-formulated diets (T1) and three different commercial diets (T2, T3, and T4). A total of 384 mixed-sex day-old chicks (192 per strain) were randomly assigned to four dietary treatments with four replicates, each consisting of 12 broilers. The experiment was set up as a 2 × 4 factorial design, providing each strain with four diets in a completely randomized design. After 42 days of the experiment, one male and one female of each strain from each pen (eight birds per treatment) were slaughtered for carcass yield and hematological analysis. Although diets had a significant impact on live body weight, feed conversion ratio, and feed consumption among the study treatments, they had no significant effect on the mortality rate of the broilers as a whole. There was a significant effect of strains on the weight of eviscerate, dress, thigh, drumstick, breast, neck, back, and eviscerate yield percentage, with Cobb 500 showing higher values than Hubbard broilers. The farm-formulated diet (T1) significantly increased the weight of non-edible offal compared to the commercial diets, except for the weight of crops and lungs, which were similar to those in commercial diet group T4. The Hubbard strain showed a higher least square mean for packed cell volume than the Cobb-500 strain. Sex was found to have no significant impact on the hematological parameters. The farm-formulated diet (T1) also resulted in a higher marginal return rate than that of the commercial diet (T3) in the Cobb-500 strain. These findings suggest that locally sourced farm-formulated diets could be a viable alternative to commercial diets for broiler chickens in the study area. Keywords: Broiler chicken, biochemical parameter, Carcass trait, Farm-made diet, Haematology, Profitable

A quantitative theory of the new life cycle of women's employment

“A new life cycle of women's labor force participation has emerged” (Goldin and Mitchell, 2017). Compared to previous cohorts, the employment profile of American college-educated married women born after the mid-1950s is flatter and higher with no hump but with a dip in the middle between ages 30-39. At the same time, these younger cohorts have delayed births, but their completed fertility rate has increased. I develop a quantitative theory to explain the changes in college-educated women's employment and fertility decisions across cohorts. First, I provide reduced-form evidence of a positive correlation between fertility and employment decisions. Second, I build a life-cycle model of labor supply and fertility decisions. My estimates indicate that the marginal returns to experience of college-educated married women increased by 33 percent. Although on-the-job accumulation of experience plays a crucial role in generating employment shifts and birth delays, the model does not generate an increase in the total fertility rate in the absence of infertility treatments. Thus, to understand why college-educated married women's life-cycle employment profiles and fertility decisions are changing, both factors must be considered.

Effects of cow feed efficiency, longevity, heterosis, and lifetime productivity on profitability of heifer selection and cow-calf operations

This study investigated factors influencing heifer replacement and cow-calf profitability using 361 cows (born 2011-2018) at the Lacombe Research and Development Centre, Alberta, Canada. Profitability was measured by marginal returns (MR) incorporating feed costs, heifer opportunity cost, calf and cull revenues, and a premium for cows retained in the herd. The study evaluated the linear effects of lifetime productivity, feed efficiency (residual feed intake adjusted for off-test backfat thickness; RFIfat), and genomic retained heterozygosity, an indicator of heterosis, on MR, feed costs, total costs, and net revenue (NR). Lifetime productivity, defined by the cumulative weight of calves weaned, was positively associated with MR and NR (P < 0.01). RFIfat influenced total cost, MR, and NR (P < 0.05), with MR improved by $168.50 cow-1 yr-1 for each unit decrease in RFIfat, although regression and group mean comparisons were not fully consistent. Genomic retained heterozygosity positively impacted MR and NR, with a 10% increase enhanced MR and NR by $21.80 and $20.50 cow-1 yr-1, respectively. Cow breed type did not affect longevity, MR, or NR. In conclusion, RFIfat and genomic diversity were important factors to consider in heifer replacement decisions when lifetime DMI was estimated as described in the present study.

PSXI-30 Economic impact of pre-training on dairy cattle automatic milking system acclimation

Abstract Pre-training in automatic milking systems (AMS) has the potential to increase milk production and milk quality. In a recent study, cows that experienced pre-training (TRT; i.e. intentional training access with an AMS prior to first AMS milking) had greater milk yield and fat percentages compared with no pre-training (38.4 vs. 37.6 ± 0.2 kg/d; 4.75 vs. 4.38 ± 0.06%; P < 0.01, and < 0.01 respectively). Similarly, cows without pre-training had greater somatic cell count (SCC; 298,860 vs. 188,220 ± 10,700 cells/mL; P < 0.001). The time required for pre-training could be a limiting factor (40 ± 10 h/wk), and the economic implications of labor versus long-term benefits must be examined. To that end, a stochastic simulation tool was developed to consider the increased costs of labor and the potential benefits of improved milk yield, milk fat percentage, and decreased somatic cell count. The GRKS distribution with minimum, mean, and maximum values was used to model increases in milk yield (0, 1.4, 1.8 kg), fat percentage (0, 3.5%, 4.5%), and labor cost ($0.0011, $0.0016, $0.0020 per h) and decreases in SCC (0, 120, 130 x 103 cells/mL) per hundredweight of milk produced. Baseline values for milk production ranged from 14.7 to 59.2 kg/cow/d in 4.4 kg increments with fat percentage of 3.5% and SCC of 312,000 cells/mL. The model assumed a minimum increase across milk yield, fat, and SCC of 0 (no change). The Simetar add-on in Microsoft Excel simulated 500 iterations across three herd size scenarios (60, 120, and 480 cows) and calculated the marginal return on investment across a 90-d period for all milk production ranges. Regardless of starting milk production level, pre-training had a positive economic impact across all levels (30 to 50 h) and herd sizes (Table 1). Financial impact per cow per d with input of 30, 40, and 50 h ranged from $0.58 to $0.73, $0.56 to $0.71, and $0.54 to $0.70. The majority of simulations returned a positive marginal impact for pre-training. If pre-training resulted in a loss, it ranged from $242 to $1,937, $323 to $2,585, $405 to $3,246, across 30, 40, and 50 hours, respectively. Based on these results, the investment in pre-training time was consistently beneficial for simulated herds.

Retailer anticipated regret under carbon tax policy

Environmental policies such as carbon tax implementation significantly impact the technology choice and cost structure of the upstream manufacturer, affecting the downstream retailer’s the procurement decision and risk management in a sustainable supply chain. This study constructs a single-manufacturer-single-retailer supply chain model constrained by carbon tax policies to analyze the influence of retailer’s anticipated regret on the supply chain operation and environmental performance. Utilizing game theory, the research finds that the retailer’s anticipated regret behavior suppresses manufacturer’s willingness to invest in the green initiative, resulting in a non-monotonic effect on profits. When the retailer’s regret level is low and her demand for eco-friendly products is also low, the manufacturer tends to reduce the green investment and increase the wholesale price to maximize the marginal return. Although such the anticipated regret behavior by the retailer may stimulate the manufacturer’s profit growth, it reduces retailer’s profit. Conversely, as the retailer’s regret level increases, the manufacturer increases the green investment and reduces the wholesale price to induce higher procurement by the retailer, leading to a decline in the manufacturer’s profit but an upward trend in the retailer’s profit. This discovery suggests that the upstream supply chain manager, should closely the monitor retailer’s potential anticipated regret and adjust the corresponding strategy accordingly. Furthermore, the study finds that the lower level of retailer’s anticipated regret positively impact environmental behavior, offering the policymaker a new perspective on promoting the green supply chain practice.