Green financing strategies under risk aversion and manufacturer competition

Abstract

In order to solve the capital-constrained enterprises to promote green R&D and industrial green transformation, taking into account risk aversion behavior and capital shortage factors, the paper considers a green supply chain composed of one retailer, one common manufacturer, and one capital-constrained green manufacturer and develops the different models of risk aversion and competition to explore the optimal financing strategies under the different financing modes. The results show that: (1) When the financing interest rates are equal, the green manufacturer should prefer the retailer financing mode, and regardless of the financing method, the increase of financing interest rate is extremely unfavorable to the retailer. (2) The increase in the degree of green manufacturer’s risk aversion is not conducive to the long-term development of the common manufacturer and himself, and it is beneficial to the retailer, but it will cause market fluctuations, while the increase in the degree of the retailer’s risk aversion is only detrimental to himself, but beneficial for supply chain members.