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Impact of subsidy policies on green products with consideration of consumer behaviors: Subsidy for firms or consumers?
Resources, Conservation and Recycling ( IF 11.2 ) Pub Date : 2021-06-12 , DOI: 10.1016/j.resconrec.2021.105669
I-Hsuan Hong , Anthony S.F. Chiu , Lukas Gandajaya

The subsidy policies have been being implemented as one of the instruments to leverage the uptake level of green products or technologies. However, the fact shows that the occupation level of such products or technologies is still far below expectations. In this study, we investigate two subsidy policies and their impacts on a market that comprises two vertically differentiated products: green and less green products. We consider two subsidy policies, namely, subsidy for firm and subsidy for consumer policies. Under the subsidy for firm policy, a regulator subsidizes the firm who produces greener products while under subsidy for consumer policy, the regulator subsidizes the consumers who buy greener products. We set the scope on consumers who exhibit the same characteristics such as preferences and green awareness level. We incorporate the reference-dependent preferences theory to derive consumers’ decisions on buying the green or less green products under the influence of each subsidy. Given our specific framework, the counter-intuitive theoretical result shows that subsidy for firm policy is capable to induce a higher level of the adoption of green products than subsidy for consumer policy.



中文翻译:

考虑消费者行为的补贴政策对绿色产品的影响:补贴企业还是消费者?

补贴政策一直作为利用绿色产品或技术的吸收水平的工具之一来实施。然而,事实表明,此类产品或技术的职业水平仍远低于预期。在本研究中,我们调查了两项补贴政策及其对包含两种垂直差异化产品的市场的影响:绿色产品和非绿色产品。我们考虑两种补贴政策,即企业补贴和消费者政策补贴。在企业政策补贴下,监管机构补贴生产更环保产品的企业,而在消费者政策补贴下,监管机构补贴购买更环保产品的消费者。我们将范围设置在表现出相同特征(例如偏好和绿色意识水平)的消费者身上。我们结合参考依赖偏好理论来推导出消费者在每种补贴的影响下购买绿色或较少绿色产品的决定。鉴于我们的具体框架,反直觉的理论结果表明,与消费者政策补贴相比,企业政策补贴能够诱导更高水平的绿色产品采用。

更新日期:2021-06-13
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