Adoption Decision of Low-Carbon Technology in The Offshore Green Supply Chain Considering Government Subsidies
DOI:
https://doi.org/10.23055/ijietap.2026.33.2.11477Abstract
The adoption of low-carbon technology in the offshore green supply chain is being increasingly affected by government subsidies. To address this issue, we construct an offshoring green supply chain system, which is composed of one OEM and two CMs, and examine how government subsidies impact the adoption of low-carbon technology and social welfare. First, we construct three benchmark models in the case of no government subsidies, and three extended models in the case of government subsidies. All six models consider three different scenarios: a) The situation when none of the members adopt the low-carbon technology; b) The situation when only one CM adopts low-carbon technology; c) The situation when two CMs adopt the low-carbon technology. Based on the above six game theoretical analysis models, we find that in the case of no government subsidy, the wholesale price is proportional to the carbon tax rate of its own country and inversely proportional to the carbon tax rate of the country where the other CM is located. The selling price is proportional to the carbon tax rate of each country. When the government decides to subsidies, the most important factors for the government are the emission reduction rate and carbon emissions, and the government subsidy coefficient can reach a peak when both the emission reduction rate and carbon emissions are high. In order to mitigate the carbon taxes faced by the OEM, we design a cost-sharing contract and demonstrate that all members of the supply chain can benefit from this contract. The analysis in this paper provides important guidance for the optimal decisions of the members in the offshoring green supply chain.
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