On green market segmentation under subsidy regulation

2017 ◽  
Vol 22 (3) ◽  
pp. 284-294 ◽  
Author(s):  
Xiang Li ◽  
Yongjian Li

Purpose This study aims to provide a better understanding of the market balance between regular (high-carbon) and green (low-carbon) products. Further, this study analyses the role of government subsidy policy, based on the results of the government’s optimal green subsidy decision and its implication for green market segmentation and social welfare. Design/methodology/approach This study adopts a Stackelberg game framework to study the interaction between the government’s subsidy regulations and the firms’ marketing regimes. When considering government subsidy decision, we use multi-objective programming theory and turn the problem into weighted single-objective optimisation programming. Findings This study explores three marketing regimes and identifies the conditions under which each regime should be adopted by a firm. Further, investigating the optimal subsidy decision problem for the government reveals three subsidy regimes corresponding to the three marketing regimes. The government may be stuck in a regime of useless subsidy and the reason for this phenomenon is analysed as well. Research limitations/implications Developing the model into a more complex supply chain situation will enhance the applicability of the framework. Incorporating other environmental regulations, such as carbon tax, can be interesting research extensions of this study. Practical implications This study provides a quantitative framework, which can help the regulator gain a deeper understanding of green subsidy policies and assist focal companies in acquiring a better appreciation of green marketing segmentation. Originality/value The study is one of the first few works to explore the optimal design of green subsidy regulation for the government and its impact on market segmentations of high- and low-carbon products by using quantitative modelling approaches and deriving vital managerial insights.

2019 ◽  
Vol 11 (10) ◽  
pp. 2765 ◽  
Author(s):  
Cong Zheng ◽  
Quangui Pang ◽  
Tianpei Li ◽  
Guizheng Wang ◽  
Yiji Cai ◽  
...  

This paper examines a farmer’s channel selection in a supply chain led by a retailer, considering carbon emissions and products’ deterioration. Three channels—online channels, retail channels, and dual channels—are proposed. The inventory model of perishable products and the two-stage Stackelberg game model are used to illustrate the operational process. To compare performances of the three channel structures, we further determine the critical points consisting of the profits and the carbon emissions among these channels. The results provide useful insights for supply chain members and the government. Farmers can choose a channel to optimize profit with respect to deterioration rate and product yield, but it might conflict with the aim of least carbon emissions. When the deterioration rate is high, the online channel is not a suitable choice. For the government, the carbon tax contributes to the reduction of carbon emissions, but it also leads to the loss of the farmer’s profit. Additionally, numerical results further illustrate that, from the perspective of the government, transporting and inventory processes are two major sources of emissions, and it is essential to implement carbon tax and exploit low-carbon transportation.


Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chuanxu Wang ◽  
Qiaoyu Peng ◽  
Lang Xu

Purpose This paper aims to explore how upstream supply chain companies will control the carbon emissions and price decisions of products when the government implements environmental tax policy on consumers. It provides some suggestions to control carbon emissions for the government and manufacturers. Design/methodology/approach This study establishes two-echelon Stackelberg game models with and without the implementation of environmental tax policy on consumers in a centralized scenario and a decentralized scenario. Through the comparative analysis of the four models, the optimal emission abatement and pricing strategies are obtained. Findings This paper concludes that implementing environmental tax policy on consumers within the market’s acceptable range is more beneficial to the retailer and the environment, as well as the overall social welfare, except for the manufacturer. Moreover, consumer’s low-carbon preference always has a broader impact on carbon abatement and corporate profits than environmental tax coefficient. Finally, the side-payment self-executing contract can effectively ensure that the supply chain members make rational decisions spontaneously while achieving a win-win solution of centralized scenario. Originality/value This paper first considers how the government’s environmental tax policy on consumers will affect the decision-making of supply chain companies, and proposes an improved side-payment self-enforcing contract to maximize environmental and economic benefits of centralized scenario. In addition, it provides a reference for the government to adopt both the carbon cap policy and the environmental tax policy.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dan Wang ◽  
Xueqing Wang ◽  
Lu Wang ◽  
Henry Liu ◽  
Michael Sing ◽  
...  

Purpose This study aims to develop a Stackelberg Game Model for seeking the optimal subsidy plans with varying levels of government financial capability (GFC). Furthermore, the scenario-based analysis is conducted and will enable governments to identify a comprehensive subsidy plan as follows: improve project performance and optimise social welfare. Design/methodology/approach A Stackelberg Game Model is developed to optimise the effectiveness of subsidies on the performance of public-private partnerships (PPPs). Findings According to the scenarios that are generated from the model, governments that are confronting with limited public budgets could reduce the intensity of performance incentives and increase the participation-oriented subsidy. Whilst a participation-oriented subsidy can stimulate private organisations’ willingness to participate in infrastructure PPPs, a performance-oriented subsidy is capable of facilitating the projects’ performances. Intuitively, the performance-oriented subsidy enables the private entities of PPPs to improve their efforts on the projects to realise higher profits. However, the participation-oriented subsidy is unable to affect the level of their effort spent on the projects. To satisfy both parties’ expectations in a PPP, the performance-oriented subsidy needs to be prioritised for a purpose of enabling higher quality outputs. Practical implications The game model developed in this study contributes to the literature by offering new insight into the underlying mechanism of governments and private entities, in terms of their decision-making for subsidy planning and contributions (i.e. resource allocation and spending) during the life-cycle of PPPs. This research enriches the government subsidy model by revealing the effects of the GFC and clarifies the impacts of two different schemes of subsidy on the performance of PPPs. Originality/value The government has been conventionally viewed as being omnipotent to provide PPPs with a wide range of subsidies. However, the subsidies are not unlimited, due to GFC. In addressing this void, this study has modelled the impacts of government subsidy plans with a consideration of GFC-related constraints. The combined effects of the participation- and performance-oriented subsidies on the project performance of PPPs have been examined.


2019 ◽  
Vol 9 (1) ◽  
pp. 16-31
Author(s):  
Annamma Joy ◽  
Russell Belk

Purpose The purpose of this paper is to examine the meaning, in both local and international context, of the Kochi-Muziris Biennale (KMB), the first international exhibit of contemporary art in India. Kochi Biennale Foundation (KBF), which administers the KMB, identifies art as a means for transforming society, with a mission to bring global contemporary art to India and to present India’s modern art to the world. The authors further investigate the role of government sponsorship and corporate patronage in funding the KMB, and investigate how resistance through art is key to the KMB’s identity. Design/methodology/approach This study focuses primarily on published materials relating to the KMB. One of the authors attended the 2016 KMB and interviewed fellow attendees. Additionally, the authors reviewed and assessed social media postings regarding the 2016 KMB. Findings The authors argue that government sponsorship and corporate patronage are never solely about political or financial power. Rather, a generalized reciprocity among the three entities – corporations, the government and the artists – allows the KMB to flourish. For the artists involved, the KMB, co-founded by activist artists, sustains interest in and awareness of resistance. Originality/value Extant literature on biennales is sparse on ways in which these exhibits extend their impact beyond the art world. The authors examine issues such as India expanding its position on the world stage through art, and the implications of political resistance embraced by Indian artists on future directions for the KMB, that have heretofore been unaddressed.


2019 ◽  
Vol 119 (9) ◽  
pp. 2055-2071 ◽  
Author(s):  
Gaoyuan Qin ◽  
Fengming Tao ◽  
Lixia Li ◽  
Zhenyu Chen

Purpose In order to reduce logistics transportation costs and respond to low-carbon economy, the purpose of this paper is to study the more practical and common simultaneous pickup and delivery vehicle routing problem, which considers the carbon tax policy. A low-carbon simultaneous pickup and delivery vehicle routing problem model is constructed with the minimum total costs as the objective function. Design/methodology/approach This study develops a mathematical optimization model with the minimum total costs, including the carbon emissions costs as the objective function. An adaptive genetic hill-climbing algorithm is designed to solve the model. Findings First, the effectiveness of the algorithm is verified by numerical experiments. Second, the research results prove that carbon tax mechanism can effectively reduce carbon emissions within effective carbon tax interval. Finally, the research results also show that, under the carbon tax mechanism, the effect of vehicle speed on total costs will become more obvious with the increase of carbon tax. Research limitations/implications This paper only considers the weight of the cargo, but it does not consider the volume of the cargo. Originality/value Few studies focus on environmental issues in the simultaneous pickup and delivery problem. Thus, this paper constructs a green path optimization model, combining the carbon tax mechanism for the problem. This paper further analyzes the impact of carbon tax value on total costs and carbon emission; at the same time, the effect of vehicle speed on total cost is also analyzed.


Author(s):  
Shao Hung Goh

Purpose Warehouses are large emitters of greenhouse gases and their impact on climate change is under increasing focus. The purpose of this paper is to investigate the barriers that inhibit the adoption of low-carbon warehousing in Asia-Pacific and their links to carbon abatement performance. Design/methodology/approach An exploratory conceptual model was first developed from a literature review of the general barriers to sustainable supply chain practices and hence potentially in low-carbon warehousing. A large contract logistics services provider in the Asia-Pacific served as the subject of a case study. The perceived barriers to low-carbon warehousing were derived from an internal survey of respondents from the case company and regressed against carbon abatement outcomes at that organization’s operations across the region. Findings Results show that the case company reduced carbon emissions by 36 percent on a revenue-normalized basis between 2008 and 2014, but with relatively lower success in emerging markets vs mature markets. An Elastic Net regression analysis confirms that technology and government-related factors are the most important barriers in the case company’s efforts to “decarbonize” its local warehousing operations. However, results suggest that the customer-related barrier, which is highly correlated with the government barrier, is in part driven by the latter. Research limitations/implications This case study is based on a single multinational company in Asia-Pacific, but nonetheless serves as an impetus for more cross-sectional studies to form an industry-wide view. Originality/value An extended stewardship framework based on the natural resource-based view has been proposed, in which logistics services providers take on a proactive boundary-spanning role to lower the external barriers to low-carbon warehousing.


Subject Energy policy in China. Significance China has resumed the construction of large numbers of coal-fired power plants, despite a massive excess of generating capacity. At the same time, investment in non-fossil fuel capacity is also still underway and the government continues to deploy low-carbon policies. Impacts Coal consumption and carbon emissions will rise further, raising doubts over the achievability of peak emissions by 2030. Despite a modest economic stimulus, large excess generating capacity will persist, as will financial losses for generating companies. The economic stimulus will boost coal use in heavy industry as well as air pollution and carbon emissions in the short-term. The financial losses of the coal-fired generators will grow; bankruptcies will be avoided through enforced consolidation and plant closures.


2017 ◽  
Vol 9 (1) ◽  
pp. 156 ◽  
Author(s):  
Tong Shu ◽  
Zhizhen Peng ◽  
Shou Chen ◽  
Shouyang Wang ◽  
Kin Lai ◽  
...  

Author(s):  
Santanu Kumar Satapathy ◽  
Shirish Sangle ◽  
Seema Unnikrishnan

Purpose There is a need for considerable attention on the adoption of cleaner technologies (CT) by firms for climate proactivity for developing countries such as India. Literature survey suggests that government, market and civil society are the key drivers of CT adoption (CTA) in developing countries. The purpose of this paper is to investigate the mediating and moderating role of the government in CTA for climate proactivity. Design/methodology/approach The data collected from a survey of Indian firms were analyzed through exploratory factor analysis and multiple regression analysis to examine the mediating and moderating role of the government. Findings The empirical outcome was compared with the current government policies to summarize the research findings. Research limitations/implications There is scope of future research to examine the moderating and mediating role of market and civil society in CTA for climate proactivity. Practical implications The study will provide significant insight into various stakeholders associated with the CTA such as government, technology manufacturers, marketing community, environmental professionals and associated researchers. The research model will be useful for policymakers, managers and researchers for understanding CTA in the Indian context. Social implications The output model will be useful for the government to formulate forward-looking strategies toward the adoption of CT by industries for climate proactivity. Originality/value Unlike previous studies in which the government was recognized as a key driver of CTA, this study makes an attempt to test the moderating/mediating role of government in CTA in India. The findings of the study are supported by adequate empirical evidence.


2014 ◽  
Vol 21 (5) ◽  
pp. 551-570 ◽  
Author(s):  
Jay Na Lim

Purpose – The Government's role in industrial innovation has always been conventionally viewed as a regulator rather than a marketer of industrial progress. By breaking out of the box, this study positioned the Government as a marketer of innovation and construction enterprises as “consumers” of innovation products. The marketing mix concept of 4Ps is applied in this study to tailor marketing strategies for Governments, who aim to stimulate a higher level of innovation performance in the construction industry. The paper aims to discuss these issues. Design/methodology/approach – A survey of 97 construction enterprises in Germany is conducted to examine the innovation performance, strategies and resource utilisation of construction firms. Findings – The findings indicate that there is no one-size-fits-all national marketing strategy in promoting construction innovation. The Government is required to classify marketing strategies according to firm sizes and enterprises’ needs in relation to their national innovation environment to maximise their innovation potential. Practical implications – To illustrate this, marketing strategies according to firm sizes for the Government to stimulate higher innovation performance of German construction enterprises are proposed. Social implications – The main recommendation is for the Government to intensify inter-firm co-operation by employing national institutions as the key promoter in establishing and operating industry-led focus groups and world-class research centres. Originality/value – Acknowledging the role of Government as more than an enabler of construction innovation is required in today's knowledge economy. This study proposes that it may be time for Governments to review their conventional role and adopt a more proactive stance in promoting innovation in the manner that counts to construction enterprises.


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