Social welfare maximization with the least subsidy: Photovoltaic supply chain equilibrium and coordination with fairness concern

2019 ◽  
Vol 132 ◽  
pp. 1332-1347 ◽  
Author(s):  
Zhisong Chen ◽  
Shong-Iee Ivan Su
Keyword(s):  
Supply Chain ◽  
Social Welfare ◽  
Welfare Maximization ◽  
Social Welfare Maximization ◽  
Fairness Concern

Water-saving service supply chain cooperation under social welfare maximization

2019 ◽  
Vol 11 (3) ◽  
pp. 703-721 ◽  
Author(s):  
Zhisong Chen ◽  
Huimin Wang
Keyword(s):  
Supply Chain ◽  
Social Welfare ◽  
Consumer Surplus ◽  
Operational Performance ◽  
Welfare Maximization ◽  
Social Welfare Maximization ◽  
Positive Externalities ◽  
Consumption Reduction ◽  
Cooperation Strategy ◽  
Internal Incentive

Abstract The water-saving service (WSS) supply chain equilibrium and cooperative decision models under the scenario without/with the social welfare maximization (SWM) goal are developed, analyzed, and compared, respectively, the numerical and sensitivity analyses for all models are conducted and compared, and the corresponding management insights and policy implications are summarized in this paper. The research results indicate that: (1) the cooperation strategy outperforms the equilibrium strategy regarding the water-consumption reduction, operational performance of WSS supply chain, the corresponding social welfare, consumer surplus, and positive externalities, regardless of whether the SWM is considered or not; (2) a subsidy threshold policy under which the government only subsidizes the WSS supply chain adopting the cooperation strategy is recommended to be designed to maximize social welfare with higher positive externalities; (3) subsidizing the WSS to pursue the SWM contributes to enhancing the water-consumption reduction, improving the operational performance of WSS supply chain and its members, the corresponding social welfare, consumer surplus, and positive externalities; (4) the WSS provider would have an internal incentive to provide WSS without government subsidy when the fixed cost of WSS is low, otherwise, the WSS provider would not have an internal incentive to provide WSS unless with a government subsidy.

scholarly journals Game-Theory Modeling for Social Welfare Maximization in Smart Grids

Energies ◽  
2018 ◽  
Vol 11 (9) ◽  
pp. 2315 ◽  
Author(s):  
Yu Hwang ◽  
Issac Sim ◽  
Young Sun ◽  
Heung-Jae Lee ◽  
Jin Kim
Keyword(s):  
Power Generation ◽  
Social Welfare ◽  
Smart Grids ◽  
Stackelberg Game ◽  
Evolutionary Game ◽  
Profit Maximization ◽  
Additional Parameter ◽  
Welfare Maximization ◽  
Social Welfare Maximization ◽  
Energy Strategies

In this paper, we study the Stackelberg game-based evolutionary game with two players, generators and energy users (EUs), for monetary profit maximization in real-time price (RTP) demand response (DR) systems. We propose two energy strategies, generator’s best-pricing and power-generation strategy and demand’s best electricity-usage strategy, which maximize the profit of generators and EUs, respectively, rather than maximizing the conventional unified profit of the generator and EUs. As a win–win strategy to reach the social-welfare maximization, the generators acquire the optimal power consumption calculated by the EUs, and the EUs obtain the optimal electricity price calculated by the generators to update their own energy parameters to achieve profit maximization over time, whenever the generators and the EUs execute their energy strategy in the proposed Stackelberg game structure. In the problem formulation, we newly formulate a generator profit function containing the additional parameter of the electricity usage of EUs to reflect the influence by the parameter. The simulation results show that the proposed energy strategies can effectively improve the profit of the generators to 45% compared to the beseline scheme, and reduce the electricity charge of the EUs by 15.6% on average. Furthermore, we confirmed the proposed algorithm can contribute to stabilization of power generation and peak-to-average ratio (PAR) reduction, which is one of the goals of DR.

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