Next Article in Journal
Transport Choice Modeling for the Evaluation of New Transport Policies
Next Article in Special Issue
Copula-Based Joint Probability Analysis of Compound Floods from Rainstorm and Typhoon Surge: A Case Study of Jiangsu Coastal Areas, China
Previous Article in Journal
Towards Comprehensive Policy Integration for the Sustainability of Small Islands: A Landscape-Scale Planning Approach for the Gal√°pagos Islands
Previous Article in Special Issue
A Method of Evaluating Ecological Compensation Under Different Property Rights and Stages: A Case Study of the Xiaoqing River Basin, China
Article Menu
Issue 4 (April) cover image

Export Article

Open AccessArticle
Sustainability 2018, 10(4), 1229; https://doi.org/10.3390/su10041229

Inter-Basin Water Transfer Green Supply Chain Equilibrium and Coordination under Social Welfare Maximization

1
Business School, Nanjing Normal University, Qixia District, Nanjing 210023, China
2
School of Business Administration, Zhejiang University of Finance and Economics, Hangzhou 310018, China
*
Author to whom correspondence should be addressed.
Received: 11 March 2018 / Revised: 12 April 2018 / Accepted: 14 April 2018 / Published: 17 April 2018
(This article belongs to the Special Issue Conflict Analysis and Sustainable Management of Water Resources)
Full-Text   |   PDF [522 KB, uploaded 3 May 2018]   |  

Abstract

The inter-basin water transfer (IBWT) projects have quasi-public-welfare characteristics, whose operations should take into account the water green level (WGL) and social welfare maximization (SWM). This paper explores the interactions between multiple stakeholders of an IBWT green supply chain through the game-theoretic and coordination research approaches considering the government’s subsidy to the WGL improvement under the SWM. The study and its findings complement the IBWT literature in the area of the green supply chain and social welfare maximization modeling. The analytical modeling results with and without considering the SWM are compared. A numerical analysis for a hypothetical IBWT green supply chain is conducted to draw strategic insights from this study. The research results indicate that (1) If the SWM is not considered, coordination strategy could effectively improve the operations performances of the IBWT supply chain and its members, the consumers’ surplus, and the social welfare when compared with the equilibrium strategy; (2) If the SWM is considered, the IBWT green supply chain and its members have a strong intention to adopt the equilibrium strategy to gain more profits, while the government has a strong intention to encourage the IBWT green supply chain and its members to adopt the coordination strategy to maximize social welfare with a smaller public subsidy; (3) The government’s subsidy policy should be designed and provided to encourage the IBWT green supply chain and its members to improve WGL and pursue the SWM, and a subsidy threshold policy can be designed to maximize social welfare with a lower subsidy budget: only when the IBWT green supply chain and its members adopt the coordination strategy can they get a subsidy from the government. View Full-Text
Keywords: inter-basin water transfer (IBWT); green supply chain; subsidy threshold policy; coordination; social welfare maximization inter-basin water transfer (IBWT); green supply chain; subsidy threshold policy; coordination; social welfare maximization
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Chen, Z.; Pei, L. Inter-Basin Water Transfer Green Supply Chain Equilibrium and Coordination under Social Welfare Maximization. Sustainability 2018, 10, 1229.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top