Dual‐channel closed‐loop supply chain with government consumption‐subsidy

The government has been acting as an important role in the formation and operation of closed‐loop supply chain. This paper focuses on how consumption‐subsidy influences dual‐channel closed‐loop supply chain. After introducing government consumption‐subsidy program and dual‐channel closed‐loop supply chain, the paper analyzes the channel members’ decisions before and after the government‐funded program performance, respectively. Finally, influence of consumption‐subsidy has been considered from the consumers, the scale of closed‐loop supply chain and the enterprises perspectives, which provides an important basis for our propositions. The key propositions of the paper are listed as follows: All the consumers that purchase the new products are beneficiaries of the government consumption‐subsidy in varying degrees; the consumption‐subsidy is conducive to the expansion of closed‐loop supply chain; both the manufacturer and the retailer are beneficiaries of the consumption‐subsidy, while the e‐tailer benefits or not is uncertain.