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Research on green decision making of pharmaceutical logistics considering government subsidy strategy

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  • Zhe Huang
  • Min Fu

Abstract

In view of the difficulty, high cost and complex technology of pharmaceutical logistics green transformation, based on the idea of green supply chain, three different government subsidy strategies for green logistics were proposed. Firstly, by constructing a Stackelberg game model with pharmaceutical logistics provider as the leader and manufacturer as the followers, the behavior selection and optimal decisions of the participants under the anarchic subsidy strategy, the single subsidy strategy of the pharmaceutical logistics provider, the single subsidy strategy of the pharmaceutical manufacturer and the coordinated subsidy strategy are analyzed respectively. Furthermore, the effects of different subsidy strategies on the green investment and strategy selection of logistics provider and manufacturer are compared. Finally, according to the research results, the paper provides reference and suggestions for the formulation of government subsidy strategy. The results show that the three subsidy strategies have different degrees of incentive effect on the green transformation of pharmaceutical logistics, and the single logistics provider subsidy strategy is the best.

Suggested Citation

  • Zhe Huang & Min Fu, 2020. "Research on green decision making of pharmaceutical logistics considering government subsidy strategy," PLOS ONE, Public Library of Science, vol. 15(10), pages 1-13, October.
    • Handle: RePEc:plo:pone00:0241400
    DOI: 10.1371/journal.pone.0241400
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    1. Weimin Ma & Ranran Zhang & Shiwei Chai, 2019. "What Drives Green Innovation? A Game Theoretic Analysis of Government Subsidy and Cooperation Contract," Sustainability, MDPI, vol. 11(20), pages 1-24, October.
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    3. Huang, Zhehao & Liao, Gaoke & Li, Zhenghui, 2019. "Loaning scale and government subsidy for promoting green innovation," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 148-156.
    4. Jian Xue & Ruifeng Gong & Laijun Zhao & Xiaoqing Ji & Yan Xu, 2019. "A Green Supply-Chain Decision Model for Energy-Saving Products That Accounts for Government Subsidies," Sustainability, MDPI, vol. 11(8), pages 1-17, April.
    5. Fogarty, James J. & Sagerer, Simon, 2016. "Exploration externalities and government subsidies: The return to government," Resources Policy, Elsevier, vol. 47(C), pages 78-86.
    6. Mitra, Supriya & Webster, Scott, 2008. "Competition in remanufacturing and the effects of government subsidies," International Journal of Production Economics, Elsevier, vol. 111(2), pages 287-298, February.
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    Cited by:

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