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The Strategies of the Poverty-Alleviation Supply Chain with Government Subsidies and Cost Sharing: Government-Led or Market-Oriented?
Journal article   Open access   Peer reviewed

The Strategies of the Poverty-Alleviation Supply Chain with Government Subsidies and Cost Sharing: Government-Led or Market-Oriented?

Kai Kang, Xinfeng Luan, Wenjing Shen, Yanfang Ma and Xuguang Wei
Sustainability (Basel, Switzerland), v 12(10), p4050
01 May 2020
DOI: https://doi.org/10.3390/su12104050
Featured in Collection :   UN Sustainable Development Goals @ Drexel
url
https://doi.org/10.3390/su12104050View
Published, Version of Record (VoR) Open CC BY V4.0

Abstract

Environmental Sciences Environmental Sciences & Ecology Environmental Studies Green & Sustainable Science & Technology Life Sciences & Biomedicine Science & Technology Science & Technology - Other Topics
Alleviating poverty is a critical problem in many developing countries such as China. In this paper, we consider a poverty-alleviation supply chain composed of one supplier in a poor area and one producer helping the supplier reduce poverty by fulfilling Corporate Social Responsibility (CSR). Our work aims at examining the impacts of government subsidies and Corporate Social Responsibility (CSR) on the poverty-alleviation operations. Four game-theoretic models are constructed and analyzed to investigate the impacts of coefficients of government subsidies and CSR cost sharing on the supplier's and producer's profits, social welfare growth, CSR level, wholesale price, output of the supplier, and retail price. Our findings suggest that the most effective poverty-alleviation mechanism in most cases is the combination of government subsidies and market efforts. Contrary to common beliefs that companies have to sacrifice profit for social responsibility, we show that poverty alleviation is reconcilable with profit maximization and social welfare improvement, and companies can achieve a win-win situation of both poverty alleviation and profitability. Our work provides new insights for sustainable poverty alleviation and socially sustainable operations.

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14 citations in Web of Science
13 citations in Scopus

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UN Sustainable Development Goals (SDGs)

This publication has contributed to the advancement of the following goals:

#12 Responsible Consumption & Production

Source: SDGs in the Output

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Collaboration types
Domestic collaboration
International collaboration
Web of Science research areas
Environmental Sciences
Environmental Studies
Green & Sustainable Science & Technology
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