Research On Government Subsidy Strategy Of Green Closed-loop Supply Chain Under Different Dominant Modes

As a series of social and public problems such as environmental pollution,resource shortage and global warming become more and more serious,the public’s voice for sustainable development is becoming increasingly high.Enterprises and governments should take sustainable development into consideration when making decisions.Environmental attributes in the supply chain can not only protect the environment,but also enable enterprises to have unique advantages in the current fierce market competition environment.Therefore,the green closed-loop supply chain can take into account both economic benefits and environmental benefits.In the study of green closed-loop supply chain,government subsidy policy has been concerned by enterprises and scholars at home and abroad,and has developed into an important part of supply chain theory research.In this paper,the green closed-loop supply chain is taken as the research object and combined with the actual situation.Considering the three market structures(manufacturer-dominated market,retailer-dominated market and the pattern of manufacturer and retailer being equal),a game model of green closed-loop supply chain composed of one manufacturer,one retailer and the government is constructed.Further analyze and study the influence of government’s consumer subsidy policy,manufacturer’s recycling subsidy policy and manufacturer’s green R&D subsidy on green closed-loop supply chain.First of all,this paper establishes nine models,namely,government consumer subsidy decision model,manufacturer recycling subsidy policy decision model and manufacturer green R&D subsidy decision model,under the market structure of manufacturer leading market,retailer leading market,and manufacturer and retailer evenly competing.Secondly,Stackelberg game and Nash game are used to solve the equilibrium solution of product wholesale price,retail price,greenness,waste product recovery rate,unit government subsidy,government subsidy coefficient,as well as the profit and social welfare of each member in each model.Finally,the effects of consumer’s sensitivity to green products and manufacturer’s green cost investment rate on the equilibrium decision in the green closed-loop supply chain are discussed through the relationship between the equilibrium solutions of each model.The results show that when one member of the closed-loop supply chain dominates the market,the equilibrium profit of that member is greater than the equilibrium profit when the other member is the market leader.Secondly,when the government aims to improve the consumer market of green products or maximize social welfare in a short time,it can choose the consumer subsidy policy.If the government wants to improve the green degree of products in the market,the effect of green R&D subsidies from manufacturers is more ideal.If the government wants to improve the recycling rate of waste products or make full use of funds and subsidies in the supply chain,it can implement recycling subsidy policies for manufacturers to achieve the goal.Finally,the increase of consumers’ sensitivity to product greenness can have a positive impact on product wholesale price,retail price,greenness,recycling rate,profits of manufacturers and retailers and social welfare of the government under various subsidy policies.However,the increase of green cost manufacturing investment rate reduces the wholesale price,retail price,greenness,recycling rate,profits of manufacturers and retailers and social welfare of government under various subsidy policies.