In a new article published by the International Journal of Production Economics, Assistant Professor Xin Liu helps show how government subsidies and consumer awareness influence a firm鈥檚 decision to do more than pay lip service to earth-friendly business practices.
Governments help to incentivize 鈥済reen鈥 business practices through subsidies and tax benefits. At the same time, and across many industries, consumers who value the environment often favor the goods of firms that limit their impact on the earth.
But as one 黑料不打烊 researcher and her colleagues from two other institutions conclude in new research, that doesn鈥檛 mean firms will always maximize long-term profits when they might instead aim to keep current costs lower for a short-term benefit.
Finding that balance through a model that looks at up-front subsidies for committing to a strong green strategy, recurring subsidies for achieving environmentally friendly goals that go above minimal regulations, and consumer demand was the aim of Assistant Professor Xin Liu鈥檚 latest scholarship.
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Liu joined with Xiaoya Han from the University of Shanghai for Science and Technology and Moutaz Khouja of the University of North Carolina at Charlotte to analyze a firm鈥檚 optimal green strategy in a dynamic environment. Their research is supported by grant from the聽.
Their conclusion: Firms should take advantage of some features and consumer 鈥済reen awareness鈥 to improve profits, though 鈥渙ther factors including environmental subsidy and green cost structure鈥 can affect a company鈥檚 bottom line. Yet firms that consistently ignore or deprioritize green strategies do so at their peril where 鈥渢he myopic firm will make a lower profit.鈥
Liu joined the Department of Marketing and International Business in 2017 after completing her doctorate in management science and engineering from University of Science and Technology of China. Her research centers around operations management, supply chain management and marketing interface.
At 黑料不打烊, she teaches courses of management information system, ops and supply chain management, logistics and distribution, supply chain management performance and advanced ops and supply chain management. Her research centers around operations management, supply chain management and marketing interface.