Enterprise Environmental Investment Decision Analysis Based On Supply Chain And The Internalization Of Environmental Cost

Government plays a dominant role in environmental protection, the social and public have to pay for end repairing of environmental pollution and ecological downgrade caused by enterprises. Due to the "externalities" of environmental pollution as well as cost-effectiveness considerations, enterprises will always be trying to escape the environmental responsibility, or game with government, consumers and other enterprises, the outcome of the game affect the business’ environmental investment decision and the conduction of behavior in the supply chain. Therefore, encourage enterprises to actively engage in environmental investment, establishment of enterprise-led environmental protection mechanisms explore both theoretical and practical significance.Based on the perspective of internalization of environmental costs, set sustainable development as the goal, after defined connotation and stakeholders in the supply chain investment, integrated multi-disciplinary theory methods such as game theory, economics and management science are used in conduction mechanism of enterprise environmental investment. Viewed from internalization of environmental costs and the sustainable development, based on the connotation and stakeholders of supply chain investment, this paper proposed a new idea that core enterprises’ investment in environmental could transmitted to the upstream and downstream enterprises though their cooperation. The article described the evolution of corporate environmental investment mechanism though setting up a game model of the ecological operation mode decision between two core enterprises; analyzed the influencing factors of enterprise environmental investment behavior including the fiscal policy&oversight mechanisms and consumers’ purchase intention. With as the research object of a two-stage supply chain made up of a supplier and the core enterprise(manufacturers), focused on the conduction mechanism of supply chain investment:established different game modes such as non-cooperative, collaborative environment investment mode, distribute the synergies profit based on improved Shapley value. Finally designed core enterprises’ incentive mechanism for vendors as well as more enterprises to conduct an environmental investment though income sharing, Promoting the coordinated development of environment and economic.