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      Green Supply Chain Operations Decision and Government Subsidy Strategies under R & D Failure Risk

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      Sustainability
      MDPI AG

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          Abstract

          The behavior of enterprises upgrading green technology presents a certain risk of failure. In this paper, the probability of R & D failure that is not considered in most articles is introduced into the model, and the supply chain composed of green product manufacturers and retailers is considered. The optimal operation decision of the green supply chain under the two modes of government subsidizing manufacturers’ R & D costs and subsidizing green product production costs is analyzed. Under the same subsidy expenditure, this study examines which subsidy method can maximize social welfare. The results show that, when the production cost of green products developed by manufacturers is high, if the government budget is low, the production cost of green products shall be subsidized; if the government budget is high, the manufacturer’s R & D cost should be judged. If the R & D cost is high, the production cost of green products should be subsidized to encourage retailers to order more green products. However, if the R & D cost is low, the R & D cost of green products should be subsidized to encourage manufacturers to invest the most in R & D. When the production cost of green products developed by manufacturers is low, the production cost of green products should be subsidized no matter the R & D cost of manufacturers. Additionally the conclusion has been verified by the actual case.

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          Most cited references32

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          Supply chain coordination with green technology under cap-and-trade regulation

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            A systematic literature review on green supply chain management: Research implications and future perspectives

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              How fairness perceptions, embeddedness, and knowledge sharing drive green innovation in sustainable supply chains: An equity theory and network perspective to achieve sustainable development goals

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                Author and article information

                Journal
                SUSTDE
                Sustainability
                Sustainability
                MDPI AG
                2071-1050
                November 2022
                November 17 2022
                : 14
                : 22
                : 15307
                Article
                10.3390/su142215307
                4df2cd29-8e64-4146-a99a-30d144dbc2e5
                © 2022

                https://creativecommons.org/licenses/by/4.0/

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