Subsidization Versus Cooperation as Incentive for Emission Reduction R&D in a Supply Chain
- 10.2991/icmess-18.2018.82How to use a DOI?
- Game theory; Carbon emissions; R&D; Technology policy
This paper studies the emission reduction R&D in a two-level supply chain under two technology policies: R&D subsidization and R&D cooperation, and compares the performance of the two technology policies. By means of game theory, we derive the equilibrium decisions and then compare optimal decisions, profits and social welfare under the two policies with exogenous tax. Our results indicate that production quantity andemissions under R&D subsidization policy are lower than those under R&D cooperation policy, while the effort of the R&D subsidization policyis higher thanthat of the R&D cooperation policy. In addition, we identify the conditions when the R&D subsidization policy performs better thanthe R&D cooperation policy, and find that the comparison results thatsupply chain profits and social welfare depend on the level of emissions tax, the efficiency of R&D technology and the steepness of marginal environmental damage function. In most cases, R&D cooperation policy leads to higher social welfare compared with R&D subsidization policy.
- © 2018, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Qinqin Li PY - 2018/06 DA - 2018/06 TI - Subsidization Versus Cooperation as Incentive for Emission Reduction R&D in a Supply Chain BT - Proceedings of the 2018 2nd International Conference on Management, Education and Social Science (ICMESS 2018) PB - Atlantis Press SP - 368 EP - 373 SN - 2352-5398 UR - https://doi.org/10.2991/icmess-18.2018.82 DO - 10.2991/icmess-18.2018.82 ID - Li2018/06 ER -