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Scientific Article details

Title Sustainable supply chain management considering technology investments and government intervention
ID_Doc 31650
Authors Ma, SG; He, Y; Gu, R; Li, SS
Title Sustainable supply chain management considering technology investments and government intervention
Year 2021
Published
DOI 10.1016/j.tre.2021.102290
Abstract With the aggravation of the global environmental crisis, consumers are keen to use green products, and enterprises are more committed to technology investment and innovation to meet consumers' green preferences. This study considers a supply chain system composed of one manufacturer and one retailer, where the manufacturer invests in green emission reduction technology (GERT) to reduce carbon emissions, and the retailer invests in information disclosure technology to transmit the higher greenness quality of products to consumers. We discuss the technology investment decisions and cooperation strategies between the manufacturer and the retailer, as well as the impacts of government regulations on supply chain members' decisions. We consider three scenarios: decentralized, government intervention, and cost sharing and government intervention. We derive the optimal technology investment decisions of the manufacturer and retailer. In addition, we identify the conditions for the manufacturer to subsidize the retailer's disclosure technology costs. The results show that a higher emission reduction subsidy encourages GERT investments and increases supply chain members' profits. However, when the government sets a higher emission reduction standard, the subsidy neither increases the emission reduction nor benefits the retailer, and hurts the manufacturer's profit. We also demonstrate that when there is cost sharing and government intervention, emission reduction and supply chain performance are always better than in the other scenarios.
Author Keywords Emission reduction; Information disclosure; Technology investments; Government intervention; Sustainable supply chain management
Index Keywords Index Keywords
Document Type Other
Open Access Open Access
Source Science Citation Index Expanded (SCI-EXPANDED); Social Science Citation Index (SSCI)
EID WOS:000670306600014
WoS Category Economics; Engineering, Civil; Operations Research & Management Science; Transportation; Transportation Science & Technology
Research Area Business & Economics; Engineering; Operations Research & Management Science; Transportation
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