| Summary |
Shu-Ting Jen, 2007,06
Institute of Traffic and Transportation National Chiao Tung University
The concepts of Green Supply Chain (GSC) referring to the integration of managing the overall lifecycle of products toward sustainable competitive advantage of business operations coexistent with the protection of global environments have been extensively recognized. However, the environmental benefit oriented from the reverse-supply chain can be easily ignored in a green supply chain by market mechanism. This study investigates the influential effects of the government’s use of economic incentives on GSC to enhance the operational efficient of GSC.
This study constructed a three-stage game model to find out an optimal economic policy to involve the GSC of considering interaction between government and members of GSC and the competitive behavior in oligopoly chain-to-chain. Game theory is then used to seek the solutions, including the government’s economic incentives policy, the operational decisions of GSC for the quantity of output, price of raw materials and recycle materials, under equilibrium conditions. In addition, the optimal return rate of end-of-life product can also be induced for green legislation. In the results, the social welfare of using the economic incentives policy, e.g., subsidies and taxes, is higher than using no economic incentive. So the influential effects of the economic incentives policy are obvious. It urges the reverse-supply chain to recycle and reuse and induces the supply chain to buy recycle materials to achieve the optimal return rate and to accomplish the integrated goals of GSC.
Government can adjust the economic incentives policy according to the environmental damage cost of consuming products, the environmental benefit of recycling and the number of the GSC. |
