{"title":"Investment in fuel-consumption reduction technologies in a vehicle supply chain under different subsidy policies: A dynamic framework","authors":"Yongxi Yi, Meng Zhang, Yuqiong Li, Chunyan Fu","doi":"10.1002/mde.4365","DOIUrl":null,"url":null,"abstract":"<p>It develops a differential game model of a fuel car supply chain in which consumers' low fuel consumption, green preferences, and government subsidies promote manufacturers' investment in fuel-consumption reduction technologies (FCRT); the price, the fuel consumption per mile, and the retailer's marketing efforts jointly determine the demand for the product. There are four game scenarios constituted by ex ante or ex post government that subsidizes and shares or does not share marketing costs. The results show that ex ante and ex post subsidies can incentivize investment in FCRT. However, the preferable subsidy model depends on the parameter values; the manufacturer-led marketing cost-sharing contract results in supply chain coordination.</p>","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":"46 1","pages":"149-162"},"PeriodicalIF":2.5000,"publicationDate":"2024-08-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Managerial and Decision Economics","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/mde.4365","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
It develops a differential game model of a fuel car supply chain in which consumers' low fuel consumption, green preferences, and government subsidies promote manufacturers' investment in fuel-consumption reduction technologies (FCRT); the price, the fuel consumption per mile, and the retailer's marketing efforts jointly determine the demand for the product. There are four game scenarios constituted by ex ante or ex post government that subsidizes and shares or does not share marketing costs. The results show that ex ante and ex post subsidies can incentivize investment in FCRT. However, the preferable subsidy model depends on the parameter values; the manufacturer-led marketing cost-sharing contract results in supply chain coordination.
期刊介绍:
Managerial and Decision Economics will publish articles applying economic reasoning to managerial decision-making and management strategy.Management strategy concerns practical decisions that managers face about how to compete, how to succeed, and how to organize to achieve their goals. Economic thinking and analysis provides a critical foundation for strategic decision-making across a variety of dimensions. For example, economic insights may help in determining which activities to outsource and which to perfom internally. They can help unravel questions regarding what drives performance differences among firms and what allows these differences to persist. They can contribute to an appreciation of how industries, organizations, and capabilities evolve.