[期刊论文][Full-length article]


Dynamic analysis of dual-market low-carbon supply chain: Considering government intervention and joint promotion

作   者:
Xin Huang;

出版年:2023

页    码:137361 - 137361
出版社:Elsevier BV


摘   要:

The increasingly severe global environmental problems have urged most people to incorporate environmental protection into their daily lives. Therefore, low-carbon supply chain management has become crucial. This paper studies a dual-market low-carbon supply chain operation in urban and rural markets with one manufacturer and two retailers. Three scenarios are considered: no government intervention, government intervention and joint promotion under government intervention. By establishing and solving three differential game models, we give the dynamic technological innovation, advertising and store promotion strategies of the manufacturer and two retailers and show the impact of government intervention and joint promotion on emissions reduction and performance. The results show that: first, government intervention can increase technology innovation efforts and decrease advertising efforts, while joint store promotion under government intervention has a positive effect on manufacturer's advertising and technological innovation efforts; second, government intervention may increase the profits of the manufacturer, although it will undoubtedly reduce the profits of the retailers, while joint store promotion under government intervention can further improve the profits of the manufacturer and retailers; third, compared to the preferences of rural consumers, manufacturer's technological innovation strategy relies more on the price and promotion preferences of urban consumers. Moreover, the preference differences between the two types of consumers have a weak impact on the manufacturer's advertising strategy, while the price preference of rural consumers has a more significant impact on the advertising efforts of the manufacturer. Overall, the research results can provide valuable suggestions for the members of the low-carbon supply chain in the dual market to improve the economic and environmental performance of the low-carbon supply chain. Introduction In recent years, energy crisis and environmental degradation have been serious, and the rise of the industrial economy is one of the critical factors causing the problem. As a crucial part of a green economy, the capability of enterprises to reduce emissions through technology innovation plays a significant role in green supply chain management. Many home appliance enterprises, such as Haier and Gree Appliance, invest a significant amount of money in the research and development of energy-saving and emission-reducing products every year (Xin, 2020; Duysters et al., 2009). On the other hand, consumers' environmental preference is the crucial driving force for manufacturers to carry out low-carbon production. However, due to differences in economic and knowledge levels, consumers in different regions recognize low-carbon products differently (Yenipazarli, 2019). According to a survey by the European Barometer Commission in 2014, 75% of Europeans prefer to buy green products at a higher price (Hong et al., 2018), while in Iran, only 31.27% of consumers choose green products first (Souri et al., 2018). This situation also occurs in the difference between urban and rural consumer preferences. In fact, compared with urban consumers who focus on the low carbon performance of products, rural consumers may pay more attention to product prices and store promotions. With the economy's improvement and increased people's income, small towns and rural areas have already become another competitive market for many large manufacturers. In order to meet the needs of different market groups for products, manufacturers and distributors (retailers) have made a series of marketing efforts. On the one hand, manufacturers carry out technology innovation on emission reduction and improve the goodwill of products through brand advertising (such as TV advertising and online platform advertising), which helps to improve consumers' recognition of low-carbon products (Rahbar and Wahid, 2011; Khorshidvand et al., 2021). On the other hand, the retailers can provide offline store promotional advertising (such as free trials, gifts, etc.), or seek to cooperate with manufacturers to carry out joint promotions (such as extending the warranty period, providing personalised accessories and adding additional after-sales services, etc.) to expand the market demand for products. For example, Haier has occupied a high market share in the urban market for many years, and is committed to developing in the rural market. It invests a lot in the brand advertising of the platform and TV advertising every year. In addition, to pursue the leading position in the rural market, Haier cooperated with local distributors to improve the delivery channel to ensure the timely handling of after-sales services. Moreover, some accessories are slightly adjusted according to local conditions, which can effectively improve the demand in the local market (Duysters et al., 2009). Research on technology innovation in the green supply chain is a hot topic in current literature. There are several studies about the impact of government taxes on emissions and the subsidies on supply chain technology innovation (Wei and Wang, 2021; Yi et al., 2022), the blockchain technology analysis in the supply chain (Friedman and Ormiston., 2022), the cooperative technology innovation (Zhou et al., 2020, 2022), the research on technology innovation strategy in the dual-channel supply chain (Mu et al., 2021; Meng et al., 2021), and joint consideration of technological innovation and goodwill (Ma et al., 2021a, Ma et al., 2021b). However, there are fewer studies on technological innovation and advertising strategies for what regards low-carbon supply chains based on consumer preferences and marketing models. Most of the products the manufacturer produces are sold to many regions differently; the diversity of the consumer market and the differentiation of advertising forms between the manufacturer and the retailer have added uncertainty to the market demand. Brand advertising of the manufacturer can improve goodwill, but it is a long-term process and needs to be accumulated through the time of brand effect. In contrast, the effect of retail store promotional advertising on demand increase is direct and does not have a time lag. Therefore, supply chain members need to determine the level of advertising efforts and study how consumer preferences affect supply chain decisions. In addition, government intervention is usually aimed at influencing the manufacturers’ behaviour on emissions, then will it affect other decisions of supply chain members and the goodwill of products? The research on these issues is worthy of attention. Based on the previous literature and the background of the low-carbon economy, this paper considers a dynamic dual-market low-carbon supply chain of rural and urban markets with different marketing models under government intervention. Specifically, this paper considers the following premises: a monopolist manufacturer producing low-carbon products and distributing them to an urban market and a rural market through two retailers; the two types of consumers have different preferences; the manufacturer invests in technology innovation and brand advertising to enhance emission reduction and low-carbon goodwill; the two retailers carry out store promotional advertising to expand market demand. The model structure slopes down through three scenarios: 1. No government intervention scenario: the manufacturer and the retailers make decisions without government intervention. 2. Government intervention scenario: the government announces the carbon emission standard and gives penalties (taxes) or rewards (subsidies) according to the production and innovation plans of the manufacturer. 3. Government intervention scenario with a joint store promotion: here, the supply chain members carry out joint store promotion to increase two markets’ demands under government intervention. The questions that this study aims to answer are the following. 1. What are the two markets' technology innovation, advertising and pricing strategies in equilibrium in three scenarios? 2. How do different types of consumer preferences affect innovation and advertising strategies? Which market's consumer preferences have a more significant impact on manufacturers' strategies? 3. How does government intervention affect the manufacturer and retailers' strategies in the two markets? 4. In the same market size, which market will obtain higher profits from joint store promotion plans? This paper's main contributions are the following: First, it establishes a two-market dynamic game model consistent with the green supply chain structure and derives the optimal strategies solution for the supply chain under government intervention and joint store promotion. Second, it analyzes how joint promotion positively impacts advertising and technological innovation efforts, while government intervention will increase technology innovation efforts and decrease advertising efforts. Third, government intervention may increase the manufacturer's profits, while it will undoubtedly reduce the retailers' profits; joint store promotion under government intervention can further improve the profits of the manufacturer and retailers. Fourth, compared to the preferences of rural consumers, the manufacturer's technological innovation strategy relies more on urban consumers' price and promotion preferences. The preference differences between the two types of consumers have a weak impact on the manufacturer's advertising strategy, while the price preference of rural consumers has a more significant impact on the advertising efforts of the manufacturer. Last, the urban market will benefit more from improving goodwill in the two markets with the same preferences. Given these preliminary observations, this paper will develop as follows: Section 2 presents the literature review. Assumptions and notations are presented in Section 3. In Section 4, the equilibrium solutions of the three differential game models: no government intervention, government intervention and joint store promotion under government intervention. Numerical experiments and sensitivity analysis are carried out in Section 6. Section 7 introduces the conclusions and future research directions. Section snippets Literature review This section divides the literature related to this study and published in recent years into three streams: green supply chain technology innovation, differential game theory and joint promotion. The concept and practice of green supply chain have been intensely discussed in the past two decades due to the growing concern about environmental issues. Under the background of the ecological industry, enterprises use various technologies to seek green supply chain innovation (GSCI) to reduce costs Model formulation This section starts by considering the existence of a manufacturer which produces one type of low-carbon product and distributes the products to an urban market and a rural market through two retailers. Compared with consumers in the rural market (denoted as ‘‘r”), consumers in the urban market (denoted as ‘‘u”) have more vital environmental awareness and are willing to pay higher prices for low-carbon products. In order to reduce emissions production and attract consumers to buy low-carbon Model solutions The manufacturer's technology innovation and advertising efforts are long-term processes, depending on the current state and time. In the model, supply chain members will play a continuous Stackelberg game. As an effective method to solve such continuous dynamic problems, differential games are widely used in much literature (Zhang et al., 2019; Ma et al., 2021a, Ma et al., 2021b). Therefore, this method is chosen to analyze three scenarios: no government intervention, government intervention Comparison among scenarios By comparing supply chain members’ optimal strategies in three scenarios, we analyze the impact of government intervention and joint store promotion on supply chain members' steady-state strategies and the changes in product prices and demand in the two markets. Let t → ∞ , the stable-state solutions in three scenarios are given. For the convenience of analysis, we assume that in Scenario 3, the unit promotion costs of the manufacturer and two retailers are the same, γ = ω . Please refer to the Sensitivity analysis and policy implications In this section, we use numerical simulation to study the impact of several parameters on two market price strategies, manufacturer investment strategies and profits, and propose multiple policy implications through these results. Some basic parameters are set to the same value to facilitate analysis, such as the equal sizes of the rural and urban markets and the exact unit promotion costs for the two retailers. Benchmark parameters are set as follows to ensure buoyant demand and pricing: a u = a r = Conclusions Facing the crisis of environmental pollution and resource shortage, consumers pay more and more attention to low-carbon products. Low-carbon manufacturing has become a challenge that manufacturers face, and its core lies in R&D and innovation of low-carbon technologies. This paper analyzes the operation of a dual-market low-carbon supply chain in two markets, discusses the technological innovation and advertising strategies of the manufacturer and two retailers in production and sales, and Funding This study was supported in part by grants from National Natural Science Foundation of China ( 72071068 ), National Natural Science Foundation of China Youth Fund ( JZ2018GJQN0479 ). CRediT authorship contribution statement Xin Huang: This paper is independently completed by the author Huang Xin. She has made significant contributions to the conception or design of her works, numerical simulation and analysis, text editing, and document collection. Declaration of competing interest On behalf of all authors, the corresponding author states that there is no conflict of interest, and manuscript is approved by all authors for publication. References (37) Y. Zhou et al. Differential game model of joint emission reduction strategies and contract design in a dual-channel supply chain J. Clean. Prod. (2018) B. Zhang et al. Shareholder value effects of corporate carbon trading: empirical evidence from market reaction towards Clean Development Mechanism in China Energy Pol. (2017) Y. Yi et al. Taxes or subsidies to promote investment in green technologies for a supply chain considering consumer preferences for green products Comput. Ind. Eng. (2022) A. Yenipazarli Incentives for environmental research and development: consumer preferences, competitive pressure and emissions taxation Eur. J. Oper. Res. (2019) Y. Yang et al. A differential game model for closed-loop supply chain participants under carbon emission permits Comput. Ind. Eng. 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所属期刊
Journal of Cleaner Production
ISSN: 0959-6526
来自:Elsevier BV