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The impact of government intervention on competition between green and non green supply chains for social welfare

Document Type : Research Paper

Authors

1 FaCulty member

2 Faculty member

3 Phd. Student in Industrial Engineering, Kharazmi University, Tehran, Iran

Abstract

Nowadays with increasing environmental pollution government's attention to the concept of the green supply chain has increased. The green supply chain produces a green product that is highly environmentally friendly. The purpose is to examine the impact of government intervention on competition between chains, the environment and social welfare. This article presents three different models. In the first model the two green and non-green supply chains are competing with each other and the government is not present. In the second model, the government creates a culture to use the green supply chain and in the third model, is taxing the non-green supply chain. The objective of government is social welfare. In both models of government intervention, the game is in the form of a Stackelberg. Backward analysis method is used to solve the model. This method is a backward inference process in problems with limited steps, with the aim of obtaining optimal action in each step. MATLAB and Maple software are used for mathematical calculations and obtaining decision variables. The results show that if the government intervenes in a cultural way, environmental damage will decrease. Another result is that the conditions for increasing social welfare in the state of culture are determined. It is also possible for the green supply chain to increase its price if certain relationships are established between the parameters. In the tax collection model, if the government aims to maximize social welfare, social welfare will increase under any circumstances compared to the absence of the government.

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References
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In Persian
Abdoli, G., Shirdel, R. (2010). The ultimate utility elasticity of the social welfare function and welfare weights of the provinces in Iran.
Social Welfare Quarterly. 10 (36) :149-184.
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Esmaeili, M., Zandi, S. (2018). »Intervention of Government in the Competition between Green and Non-Green Supply Chains«. Industrial Management Journal, 2018, Vol. 10, No.2, pp. 297-314
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Industrial Management Studies
Volume 19, Issue 63
January 2022
Pages 51-83
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