Government Subsidy Strategies Considering Greenness on Agricultural Product E-Commerce Supply Chain

Based on the Stackelberg game theory, this paper explores the incentive effects of five government subsidy strategies on agricultural products in e-commerce. A two-tier e-commerce supply chain of one farmer and one e-commerce platform is constructed to examine the impact of five different government...

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Main Authors: Fangfang Guo, Tao Zhang, Xiuquan Huang, Yaoguang Zhong
Format: Article
Language:English
Published: MDPI AG 2023-03-01
Series:Mathematics
Subjects:
Online Access:https://www.mdpi.com/2227-7390/11/7/1662
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author Fangfang Guo
Tao Zhang
Xiuquan Huang
Yaoguang Zhong
author_facet Fangfang Guo
Tao Zhang
Xiuquan Huang
Yaoguang Zhong
author_sort Fangfang Guo
collection DOAJ
description Based on the Stackelberg game theory, this paper explores the incentive effects of five government subsidy strategies on agricultural products in e-commerce. A two-tier e-commerce supply chain of one farmer and one e-commerce platform is constructed to examine the impact of five different government subsidy strategies on the greenness of an agricultural product, the wholesale price, the selling price, and the profit of the supply chain. The results show that the effect of offering government subsidies is significant. Also, the direct subsidization from the government to a farmer has the maximum effect on the sales and greenness of the agricultural product. The results of this study provide policy implications for governments in establishing a sustainable mechanism through direct subsidization.
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spelling doaj.art-e147db3052cc48c59e44ea9e184a4ba52023-11-17T17:08:53ZengMDPI AGMathematics2227-73902023-03-01117166210.3390/math11071662Government Subsidy Strategies Considering Greenness on Agricultural Product E-Commerce Supply ChainFangfang Guo0Tao Zhang1Xiuquan Huang2Yaoguang Zhong3School of Economics and Management, Dongguan University of Technology, Dongguan 523808, ChinaFaculty of Humanities and Social Sciences, Macao Polytechnic University, Macau 999078, ChinaFaculty of Humanities and Social Sciences, Macao Polytechnic University, Macau 999078, ChinaSchool of Business, Dongguan Polytechnic, Dongguan 523808, ChinaBased on the Stackelberg game theory, this paper explores the incentive effects of five government subsidy strategies on agricultural products in e-commerce. A two-tier e-commerce supply chain of one farmer and one e-commerce platform is constructed to examine the impact of five different government subsidy strategies on the greenness of an agricultural product, the wholesale price, the selling price, and the profit of the supply chain. The results show that the effect of offering government subsidies is significant. Also, the direct subsidization from the government to a farmer has the maximum effect on the sales and greenness of the agricultural product. The results of this study provide policy implications for governments in establishing a sustainable mechanism through direct subsidization.https://www.mdpi.com/2227-7390/11/7/1662Stackelberg gamegovernment subsidiesagricultural products supply chaingreenness
spellingShingle Fangfang Guo
Tao Zhang
Xiuquan Huang
Yaoguang Zhong
Government Subsidy Strategies Considering Greenness on Agricultural Product E-Commerce Supply Chain
Mathematics
Stackelberg game
government subsidies
agricultural products supply chain
greenness
title Government Subsidy Strategies Considering Greenness on Agricultural Product E-Commerce Supply Chain
title_full Government Subsidy Strategies Considering Greenness on Agricultural Product E-Commerce Supply Chain
title_fullStr Government Subsidy Strategies Considering Greenness on Agricultural Product E-Commerce Supply Chain
title_full_unstemmed Government Subsidy Strategies Considering Greenness on Agricultural Product E-Commerce Supply Chain
title_short Government Subsidy Strategies Considering Greenness on Agricultural Product E-Commerce Supply Chain
title_sort government subsidy strategies considering greenness on agricultural product e commerce supply chain
topic Stackelberg game
government subsidies
agricultural products supply chain
greenness
url https://www.mdpi.com/2227-7390/11/7/1662
work_keys_str_mv AT fangfangguo governmentsubsidystrategiesconsideringgreennessonagriculturalproductecommercesupplychain
AT taozhang governmentsubsidystrategiesconsideringgreennessonagriculturalproductecommercesupplychain
AT xiuquanhuang governmentsubsidystrategiesconsideringgreennessonagriculturalproductecommercesupplychain
AT yaoguangzhong governmentsubsidystrategiesconsideringgreennessonagriculturalproductecommercesupplychain