On government subsidies of closed loop green suppl y chain: Subsidies for consumers or manufacturers?

The government acts as an important role in the formation and operations of a closed-loop green supply chain. We focus on how consumption-subsidy and manufacturersubsidy influence the closed-loop supply chain. After introducing government subsidy program in the closed-loop supply chain, we analyze the channel members' decisions before and after the government-funded program respectively. All the consumers that are beneficiaries of the government subsidies in varying degrees. The government-subsidy is conductive to the expansion of closed-loop supply chain. Both the manufacturer and the retailer have benefited from the government-subsidy. By comparison, we find that the subsidies to consumers can bring more benefits for the manufacturer and the retailer.