Optimizing pricing and information traceability investments in blockchain-enabled green supply chains under government subsidies
Jiawen Zhang · Journal of Industrial and Management Optimization · 2025
In the context of Industry 4.0, the shift to sustainability by investing in blockchain technology (BT) and producing green products has become a popular practice among firms. However, balancing short-term financial pressures with long-term returns remains a challenge. This study examines the optimal conditions for pricing green products and BT adoption under government subsidies. Firstly, we find that the retailer always benefits from adopting BT, while for the manufacturer, BT adoption is profitable only when both government innovation subsidies ratio and unit BT operational costs are within certain ranges. Secondly, a 'win-win' situation for both supply chain members and consumers depends on the government innovation subsidy ratio and the strength of sales subsidies. Lastly, the impact of government subsidies on consumer surplus in a blockchain-enabled green supply chain differs. Interestingly, we also find that unit sales subsidies can increase consumer surplus by lowering retail prices, while the green innovation subsidy ratio harms consumer surplus.