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Evolutionary Game on Government Regulation and Green Supply Chain Decision-Making

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  • Jiayang Xu

    (School of Management, Zhejiang University of Technology, Hangzhou 310023, China)

  • Jian Cao

    (School of Management, Zhejiang University of Technology, Hangzhou 310023, China
    Center for Global & Regional Environmental Research, The University of Iowa, Iowa City, LA 52242, USA)

  • Yunfei Wang

    (School of Management, Zhejiang University of Technology, Hangzhou 310023, China)

  • Xiangrong Shi

    (School of Information Management and Engineering, Zhejiang University of Finance and Economics, Hangzhou 310018, China)

  • Jiayun Zeng

    (School of Management, Zhejiang University of Technology, Hangzhou 310023, China)

Abstract

Sustainability issues have gained growing awareness in recent years. Governments play an important role in environment and resources problems since they can affect enterprises’ production activities by enacting policies and regulations. To promote green production in the long term associated with the consideration of financial intervention of governments, we establish a three-population model of suppliers, manufacturers and governments based on evolutionary game theory, and analyze the evolutionary stable strategies (ESS) of their unilateral and joint behaviors. Further, system dynamics (SD) is applied to empirical analysis for exploring the dynamic interaction of the populations’ strategy, and the key factors affecting ESS are also discussed in detail. The results show that: (1) the proportion of green suppliers and manufacturers in their groups determines whether the government implements regulation; (2) any party of the supplier and manufacturer that adopts green strategy could promote green behavior of the other; (3) the government is advised to supervise and implement reward and punishment mechanism under the low proportion of green supply chain; (4) government regulation could promote the corporations to adopt green behavior and should preferentially implements the mechanism on manufacturers. The results provide insights into the policy-making of governments and enterprises management on sustainable development.

Suggested Citation

  • Jiayang Xu & Jian Cao & Yunfei Wang & Xiangrong Shi & Jiayun Zeng, 2020. "Evolutionary Game on Government Regulation and Green Supply Chain Decision-Making," Energies, MDPI, vol. 13(3), pages 1-25, February.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:3:p:620-:d:315326
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    References listed on IDEAS

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    5. Carmen Elena Stoenoiu & Lorentz Jäntschi, 2024. "Sustainable Development of the Economy—A Case Study of the Impacts of the Size of Enterprises and Factors Affecting Performance," Sustainability, MDPI, vol. 16(13), pages 1-38, June.
    6. Jingming Li & Leifu Gao & Jun Tu, 2024. "Evolutionary Game Analysis of Governments’ and Enterprises’ Carbon-Emission Reduction," Sustainability, MDPI, vol. 16(10), pages 1-24, May.
    7. Genhasi Ge & Daoping Wang & Mesumbe Bianca Epede, 2022. "Pricing Policies of Green Dual-Channel Supply Chain with Fairness Concerns and Altruistic Preferences Based on Consumers’ Environmental Awareness and Channel Preference," IJERPH, MDPI, vol. 19(20), pages 1-28, October.
    8. Han Xiao & Cheng Ma & Hongwei Gao & Ye Gao & Yang Xue, 2022. "Green Transformation of Anti-Epidemic Supplies in the Post-Pandemic Era: An Evolutionary Approach," IJERPH, MDPI, vol. 19(10), pages 1-26, May.
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    10. Chuan Zhao & Luyao Li & Hongxia Sun & Hongji Yang, 2021. "Multi-Scenario Evolutionary Game of Rumor-Affected Enterprises under Demand Disruption," Sustainability, MDPI, vol. 13(1), pages 1-26, January.

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