Green supply chain poverty alleviation through microfinance game model and cooperative analysis.

This study was motivated by the activation of recent poverty alleviation practices within green supply chains. Specifically, this paper examined supply chain operations when the supply chain participants acted individually and cooperatively in a "green poverty alleviation" supply chain in which the manufacturer initiated product "greening" and provided microfinance to alleviate the poverty of poor raw materials suppliers. A series of supply chain game models were examined to elucidate the impact of the cooperative mechanisms on the greening levels, prices and profits, after which the impact of consumer green sensitivities and microfinance interest rates were examined. Consequently, an optimal cooperative mechanism was developed based on a two-part tariff contract. The key contributions in this paper are the establishment of a decision-making model for a cooperative supply chain mechanism and an optimal cooperative mechanism to initiate "green poverty alleviation" to solve the problems associated with the high microfinance interest rates. Practical implications and managerial insights about improving the economic and environmental performance of supply chain "green poverty alleviation" through cooperation are also presented. • Sustainable supply chain mechanism for green and poverty alleviationinitiatives • Joint action and bargaining cooperative mechanism for the sustainable supply chain. • Cooperative mechanism to solve the problem of high interest rate of microfinance. • Green sensitivity increasing will promote supply chain enterprises to cooperate. • A coordinated cooperation mechanism will further promote cooperation. [ABSTRACT FROM AUTHOR]