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Author Zhang, Xuemei ♦ Xu, Xiaoyan ♦ He, Ping
Source SpringerLink
Content type Text
Publisher SP Systems Engineering Society of China
File Format PDF
Copyright Year ©2012
Language English
Subject Domain (in DDC) Technology ♦ Engineering & allied operations
Subject Keyword Product design strategy ♦ subsidy policy ♦ green product ♦ total environmental quality ♦ Operations Research/Decision Theory ♦ Game Theory/Mathematical Methods ♦ Complexity
Abstract Industrial development can enrich people’s lives, but it also causes environmental pollution, which is an area of significant concern among governments, consumers, and companies. Governments formulate some environmental policies, which motivate industry by providing greater incentives for green product development. Consumers are classified into two groups — ordinary and green market segments — according to their environmental awareness and attitudes. In this regard, companies need to reconsider their primary product design strategies. By investigating the interactions among customers’ preferences, firms’ product strategies, and government subsidy policies, this paper presents a theoretical model for new product design strategies. After detailed theoretical analysis of such strategies, we found that to motivate firms to choose environmentally friendly product design strategies, governments should inaugurate effective subsidy policies. After simultaneously considering environmental issues and firms’ benefits, we designed a subsidy policy. With such a policy, firms can change their primary product design strategies and develop both green and ordinary products, thereby increasing the firms’ profits and improving the total environmental quality.
ISSN 10043756
Age Range 18 to 22 years ♦ above 22 year
Educational Use Research
Education Level UG and PG
Learning Resource Type Article
Publisher Date 2012-09-10
Publisher Place Heidelberg
e-ISSN 18619576
Journal Journal of Systems Science and Systems Engineering
Volume Number 21
Issue Number 3
Page Count 16
Starting Page 356
Ending Page 371


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Source: SpringerLink