Manufacturer’s Strategy for Investing in Low-carbon Technologyand Blockchain:Investment Subsidy vs. Output Subsidy

Abstract

This paper analyses the impact of government subsidy policies on manufacturers’ investment strategies in blockchain and low-carbon technologies under carbon tax regulations. A game model of a two-stage supply chain with a manufacturer and retailer is utilized to examine different effects of technology and output subsidy policies. Findings: With low technology subsidy ratio, a low (high) low-carbon technology investment cost factor causes better (smaller) emission reduction than output subsidy policy, while high technology subsidies result in greater emission reduction. Furthermore, technology subsidy policy with a low investment cost factor enhances blockchain adoption, demand, and profits for manufacturers and retailers. Finally, the blockchain adoption, emission reduction, demand, and profits for manufacturers and retailers are all decreasing in blockchain and low-carbon technologies investment cost factors.