Manufacturer vs. Consumer Subsidy with Green Technology Investment and Environmental Concern

Bian, Junsong; Zhang, Guoqing; Zhou, Guanghui

doi:10.1016/j.ejor.2020.05.014

Cited by 155 publications

(76 citation statements)

References 45 publications

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“…Furthermore, He et al [20] only considered consumer subsidy and did not consider risk factors. Recently, Bian et al [4] discussed the impact of manufacturer subsidy and consumer subsidy on investment in emission reduction technologies, and which subsidy the government should implement depends on whether the government focuses on cost or social welfare. Our study differs from Bian et al [4] in two aspects.…”

Section: Government Subsidy In a Clscmentioning

confidence: 99%

“…Recently, Bian et al [4] discussed the impact of manufacturer subsidy and consumer subsidy on investment in emission reduction technologies, and which subsidy the government should implement depends on whether the government focuses on cost or social welfare. Our study differs from Bian et al [4] in two aspects. First, unlike Bian et al [4], we not only consider the manufacturer subsidy and consumer subsidy, but also consider the scenarios of without subsidy and recycler subsidy.…”

Section: Government Subsidy In a Clscmentioning

confidence: 99%

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Which group should governmental policies target? Effects of incentive policy for remanufacturing industry

et al. 2021

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Although previous research ignores other subsidy groups, we conduct a comprehensive study. In our closed-loop supply chain (CLSC) model, the manufacturer can produce either new products or remanufactured products of end-of-life (EOL) products recycled by independent recyclers. Our core objective is to explore the pricing strategies of the two products under different government subsidy plans and which groups the government subsidy plans should target. Considering the consumers' discount perception and uncertainty of recovery rate, we construct four game models: (1) no subsidy (Scenario N); (2) subsidy for the manufacturer (Scenario M); (3) subsidy fof the four models. We also compare the profits and social welfare in these four models and find that the Scenario C has the most significant improvement in enterprise profits and social welfare compared to other models. r the recycler (Scenario R); (4) subsidy for consumers (Scenario C). We first obtain the equilibrium strategies oFinally, in scenario C , when consumers' discount perception increases, the quantity of new products first rises then falls, and the quantity of remanufactured is on the contrary.

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Section: Government Subsidy In a Clscmentioning

confidence: 99%

Section: Government Subsidy In a Clscmentioning

confidence: 99%

Which group should governmental policies target? Effects of incentive policy for remanufacturing industry

et al. 2021

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“…The development of environmental degradation interacts with the socio-economic status of individuals to have an impact on environmental concerns. People with better economic conditions generally have higher environmental awareness ( [52][53][54][55] affects product of the green marketing tourism by utilizing the theory of planned behavior to the behavior. While, trading decisions of green marketing.…”

Section: Environmental Concernmentioning

confidence: 99%

Developing green marketing tourism in Perak, Malaysia

2021

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Perak is the second largest state in Malaysia. Meanwhile, the trend of tourists to Perak has declined. The local government is working with the Ministry of Tourism, Arts and Culture to increase the number of tourists for the Visit Malaysia 2020 program. They focus on campaigning for markets: Europe, Australia, the Middle East, Central and East Asia. Meanwhile, environmental health problems worsen the quality of tourist destinations in Perak. To respond to this program, they are trying to increase a tourist visits by conducting a Silver Tourism promotion campaign that uses English and Chinese as part of its marketing strategy. The aim is to increase the attractiveness of tourists from Europe and China. We recommend paying attention to social influences, environmental awareness, pro-environment behavior, and awareness of pro-environment behavior. By paying attention and building this empathy, it will prepare the application of green marketing strategy.

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“…Research on consumer subsidy policy is the most related to our work [ 24 , 25 , 26 , 27 , 28 ]. Zhang et al [ 24 ] analyze the economic and environmental impacts of a consumer subsidy policy and find that the consumer subsidy program can always benefit the environment.…”

Section: Literature Reviewmentioning

confidence: 99%

“…They find that the consumer subsidy is a greater incentive for improving environmental benefits than the tax policy. Bian et al [ 26 ] examine and compare the consumer and manufacturer subsidy and find that the former yields a lower abatement and a higher consumption quantity, which lead to higher carbon emissions. In the development of sustainable product manufacturing and remanufacturing decisions, Nielsen et al [ 27 ] compare the direct subsidy to consumers, to the manufacturer to stimulate used product collection, and to the manufacturer to improve product quality.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Consumer Subsidy on Green Technology Innovations for Vehicles and Environmental Impact

Zhang

Wang

Zhao

2020

IJERPH

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In the pressure of excessive resource consumption and serious environmental pollution, governments provide various consumer subsidies to promote sales of energy-saving vehicles, including the energy-saving fuel vehicle (FV) and the pure electric vehicle (EV) in the automobile industry. Utilizing a Hotelling model, this paper explores two competing firms’ decisions on the selection of green technology innovations for vehicles, namely producing either the energy-saving FV or the pure EV, while the two vehicles are different from each other on not only the energy-saving level but also the consumer’s acceptance. We further explore the impact of the government’s consumer subsidy on the profits, environment, and consumer surplus. We find that the two competing firms’ equilibrium selections of green technology innovations for vehicles change as the variable manufacturing cost of the pure EV varies. In particular, when the variable manufacturing cost of the pure EV is moderate, the firm with a lower technology capacity for improving the energy-saving level of the FV (i.e., firm 2) will produce the pure EV while the other firm (i.e., firm 1) produces the energy-saving FV, and the converse is not true. In this case, the decreasing variable manufacturing cost of the pure EV will benefit firm 2 and make firm 1 lose in a competing context. In particular, both firms would charge lower retail prices as the variable manufacturing cost of the EV decreases. In addition, we find that although the consumer subsidy could reduce the purchasing cost for the consumer and promote both firms to produce higher energy-saving level vehicles, a firm can still reduce its retail price under certain conditions because of the competition between the two firms. Finally, we prove that the consumer subsidy can be always beneficial to the environment, while it may hurt the consumer surplus and the firms’ profits under certain conditions. The results provide suggestions for governments to adopt an appropriate consumer subsidy program from perspectives of the consumer, environment, and economy.

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Manufacturer vs. Consumer Subsidy with Green Technology Investment and Environmental Concern

Cited by 155 publications

References 45 publications

Which group should governmental policies target? Effects of incentive policy for remanufacturing industry

Which group should governmental policies target? Effects of incentive policy for remanufacturing industry

Developing green marketing tourism in Perak, Malaysia

The Impact of Consumer Subsidy on Green Technology Innovations for Vehicles and Environmental Impact

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