The Research On Government Dynamic Subsidy For Green Product With Consumer's Increasing Environmental Awareness

In the booming trend of green products,subsidies for green products are also very common.With the rising of consumer environmental awareness and other new market variety,the dynamic subsidy policy for green products has become a new issue in the green supply chain.This article firstly studied the decision-making and results of the supply chain in the static subsidy situation where there are both green and common products in the market and does not take into account increasing consumer awareness of environmental protection.Then it analyzes the impact of production costs on different government subsidy decisions.On this basis,this paper considered how the government can make dynamic subsidy decisions and the actions of all parties in the supply chain under the circumstances where the environmental protection awareness of consumers is increasing and the manufacturer provides only green products and the manufacturer provides both green and ordinary products.And then this paper analyzed the comparison of the optimal decision-making behavior and results of the government's adoption of different subsidies.The results of the study showed that under the static green product subsidy,subsidies will significantly improve the market performance of green products.When the government considers different subsidy decision-making goals,its optimal subsidy decisions and results will be affected by the relative relationship between green and ordinary product production costs.When the cost of green products is much higher than that of ordinary products,the government's decision-making results will be the same under two decision-making goals.when the cost of the two products is close,the difference in the subsidy decision will obviously lead to different subsidies.At this time,the subsidy input under the goal of maximizing social welfare is higher than the subsidy input under the goal of minimizing the expenditure,resulting in green Product prices,demand,government expenditure,and total social welfare are all higher than the outcome of the minimum spending target.In the case of a government dynamic subsidy and manufacturers only provide green products,since there is only a green product in the market,when the government makes a single subsidy declining factor decision,the government tends to provide the lowest subsidy under the minimum spending target.,Or with the fastest speed to allow subsidies to leave the market.With the goal of maximizing social welfare,the government tends to increase subsidies and slow the rate of withdrawal of subsidies in order to achieve a win-win situation for all parties in the supply chain and the optimal social benefits.In addition,after a comparative analysis,when the government decides both the subsidy reduction rate and the initial subsidy limit,the decision-making result is often better than the single-factor decision-making.In the case of manufacturers producing both green and ordinary products,when the government makes policy decisions on subsidy reduction,considering multiple subsidy targets simultaneously will also make decision-making behavior and results affected by multiple goals;when the government makes single-factor decisions,the government tended to provide the lowest subsidy limit under the goal of minimizing expenditures,or decrease subsidies from the market at the fastest speed.Under the goal of maximizing social welfare,the government tended to increase subsidies and slow the rate of subsidy reduction to achieve the optimal effect of social welfare;When the government carries out joint decision-making of two factors,the decision-making result is not only affected by the decision-making objectives,but also affected by the actual situation.