Research On The Level Of Green Effort And Pricing Decisions Considering Retailer’ Fairness Concerns Under Environmental Taxes

In the social environment of green development,in order to improve the increasingly serious environmental problems,the government vigorously advocates green production and green consumption.Some countries begin to formulate environmental tax policies to reduce environmental pollution,but there is little distinction between the emission responsibilities of producers and consumers.Most studies on supply chain assume that channel members are rational,but in fact,decision-makers still care about the fairness of profit distribution.Moreover,in the real market,because manufacturers have certain production capacity and market scale has certain limitations,it is very common for multiple retailers to compete with each other.Therefore,in the context of green supply chain,this paper describes environmental taxes based on production and consumption,considering the influence of retailers’ fair concern behavior and horizontal competition on enterprises’ optimal decisions and profits.Firstly,based on the manufacturer-led simple two-level supply chain,considering that retailers will have unfair feelings when making decisions,the decision-making model of whether retailers have the tendency of fairness concern behavior is constructed under production-based tax and consumption-based tax respectively,and the green input level and pricing decision under different situations are explored.The optimal decision of each member is solved by backward induction,and the new views of considering retailers’ equity concerns under different environmental taxes are analyzed by comparison,and the relevant conclusions are verified by numerical experiments.The results show that :（1）introducing environmental taxes does not necessarily motivate manufacturers to invest more in green technologies,so policymakers should be wary of blindly pursuing higher tax rates in order to encourage more emission reductions;（2）In response to the injustice of retailers,manufacturers are willing to reduce the level of green input and sacrifice some profits,but the loss of profits is not caused by the reduction of wholesale prices;Retailers may not benefit from considering equity concerns,which are affected to some extent by tax rates and green input cost coefficients.The whole supply chain is likely to gain higher profits when retailers achieve fair results;（3）There is a special case,that is,when production-based tax and consumption-based tax have the same tax rate,whichever environmental tax is chosen will make retailers and manufacturers get the same profit,but there will be higher wholesale price and sales price under the productionbased tax model.Secondly,the introduction of retailers’ horizontal competition,on the basis of simple secondary green supply chain model to join a fair and neutral retailer,in the presence of retail competition environment and under different environment tax model is divided into consider retailers fairness concerns are discussed,and the same comparison between manufacturer and retailer’s pricing decision and profits,according to the property of the numerical analysis of some important parameters,Get relevant management inspiration.The results show that: under retailer 2’s fairness concern behavior,retailer 1 will lower the selling price to obtain no less than the market share of retailer 2,and retailer 1 who makes price concession gets higher profits.That is to say,retailer 2’s aversion to unfairness is actually disadvantageous to itself and beneficial to its competitors.Whether there is retailer competition or not,manufacturers will reduce green input level as long as they perceive retailer’s unfair sentiment,sacrificing some profit.