LAPSE:2023.9467
Published Article
LAPSE:2023.9467
Equilibrium Optimization with Multi-Energy-Efficiency-Grade Products: Government and Market Perspective
Qiuyun Zhu, Xiaoyang Zhou, Aijun Liu, Chong Gao, Lei Xu, Fan Zhao, Ding Zhang, Benjamin Lev
February 27, 2023
Abstract
This paper studies the multi-level supply chain network equilibrium optimization problem of multi-energy-efficiency products under different government subsidies and demand scales. In the equilibrium optimization problem, manufacturers determine the production volume of the energy-saving products; retailers decide the transaction volume with manufacturers, distribution volume for markets, and marketing efforts of energy-saving products; markets determine the transaction price. Firstly, the optimal decision-making behaviors of manufacturers, retailers, and markets are described. Simultaneously, the global optimization problem is transformed into a finite-dimensional variational inequality formulation. Then, the equilibrium conditions of the whole supply chain network are derived by the Euler method. Finally, a case study verifies the effectiveness of the proposed method. Interestingly, we found that energy-saving subsidies and demand scales were negatively correlated with the marketing efforts of the subsidized retailers for high energy-efficient products and positively correlated with the marketing efforts of non-subsidized retailers for high energy-efficient products in the same market; the development of retailers in the same market tended to be consistent, and the differentiation of the demand scale eliminated the retailers without a competitive advantage.
Keywords
demand scales, energy-saving subsidy, marketing efforts, multi-energy-efficiency-grade products, supply chain network equilibrium
Suggested Citation
Zhu Q, Zhou X, Liu A, Gao C, Xu L, Zhao F, Zhang D, Lev B. Equilibrium Optimization with Multi-Energy-Efficiency-Grade Products: Government and Market Perspective. (2023). LAPSE:2023.9467
Author Affiliations
Zhu Q: School of Economics and Management, Xidian University, Xi’an 710126, China
Zhou X: School of Management, Xi’an Jiaotong University, Xi’an 710049, China
Liu A: School of Economics and Management, Xidian University, Xi’an 710126, China [ORCID]
Gao C: School of Economics and Management, Xidian University, Xi’an 710126, China
Xu L: Economics and Management College, Civil Aviation University of China, Tianjin 300300, China
Zhao F: School of Economics and Management, Xidian University, Xi’an 710126, China
Zhang D: School of Business, State University of New York at Oswego, Oswego, NY 13126, USA
Lev B: Decision Sciences Department, LeBow College of Business, Drexel University, Philadelphia, PA 19104, USA [ORCID]
Journal Name
Energies
Volume
15
Issue
19
First Page
7376
Year
2022
Publication Date
2022-10-08
ISSN
1996-1073
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Original Submission
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PII: en15197376, Publication Type: Journal Article
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LAPSE:2023.9467
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https://doi.org/10.3390/en15197376
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