Research On Supply Chain Decision-making Based On Green Innovation Under Different Subsidy Modes

With the environmental problems becoming more and more prominent in China,the green innovation for environmental protection is no longer a simple corporate social responsibility,and the environmental protection requirements for products have become a rigid constraint in the process of enterprise development.Under this context,more and more enterprises pay attention to the importance of environmental protection and actively carry out green innovation.Moreover,the competitive business environment makes the upstream and downstream of the supply chain cooperate more closely,and leveraging the power of the supply chain to develop green innovation will be the mainstream in the future.However,due to the double externalities of green innovation,enterprises lack the motivation for green innovation,which requires strong support from the government and core enterprise.In this case,in the face of incentives from all sides,how should the supply chain enterprises make corresponding decisions?In addition,although consumers also pay more and more attention to environmental protection,at the same time,it should not be ignored that the market is still full of a large number of non-green consumers,and their purchasing behavior also has a very important impact on enterprise decision-making of the supply chain.Therefore,taking the heterogeneity of consumers into consideration is a practical problem which worth further study.This paper comprehensively considers the heterogeneity of consumers,starting from the practice background of the existing green innovation subsidies,analyzes the impact of different green innovation subsidy modes,the proportion of green consumers and consumers' environmental preference on supply chain decision-making,and then discusses the impact on environmental benefits,economic benefits and social welfare.Then,the equilibrium values under different conditions are compared and analyzed.It can provide reference for supply chain green innovation.The main work of this paper is as follows:(1)Under the circumstance that both upstream and downstream of the supply chain carry out green innovation,the external government subsidy mode and the supply chain internal coordinating subsidy mode are considered respectively,the demand expression function was established based on the proportion of green consumers and the environmental protection preference of consumers.A multi-stage game model is built to analyze the optimal decision of supply chain under different subsidy modes,and then to discuss the impact of environmental protection behavior of consumers,subsidy behavior and other relevant factors on the optimal decision,environmental benefits,enterprise profits and social welfare.The research results show that,whether in external government subsidy circumstance or internal supply chain coordinating subsidy circumstance,retail price,the market demand,the supplier and manufacturer green innovation efforts,enterprise profits and environmental benefits,government green innovation subsidy spending,consumer surplus and social welfare are always positively related to the proportion of green consumers,consumers' environmental preference degree and the coefficient of government green innovation subsidy.(2)The optimal decision and optimal value of supply chain under three different circumstances(no subsidy,government external subsidy and supply chain internal coordinating subsidy)are compared and analyzed,and the validity of the conclusion is verified by numerical simulation.The research results show that the supply chain green innovation level can be improved to a greater extent by the government's macro-intervention and micro-coordination mechanism.In addition,when the government and core enterprises participate in the intervention in turn,it will be beneficial to the market demand,enterprise profits,consumer surplus and environmental benefits,government subsidies for green innovation will also be higher.Thus,it shows that the core enterprises play an important role in promoting the overall green innovation level of the supply chain and improving the environmental benefits.Therefore,supply chain members participating in green innovation should attach great importance to the coordination of relevant channels.However,for the society and retail price,only when certain conditions are met,when the government and core enterprises successively participate in the intervention,it will be conducive to the improvement of social welfare and the reduction of retail price.In this paper,different subsidy modes and consumer heterogeneity are innovatively included in the analytical framework of supply chain green innovation,and the influence of green innovation efforts of suppliers and manufacturers on supply chain decision-making is also paid attention to,which is closer to reality and provides scientific theoretical basis for supply chain and governments to make better decisions.