Low-carbon technology investment strategies with blockchain under subsidy policies

Driven by government-led digital transformation initiatives and the rapid development of blockchain technology, low-carbon supply chain management is increasingly confronted with the dual imperative of investing in low-carbon technologies while effectively integrating blockchain systems to maximise corporate profits. This study examines low-carbon product supply chains by assessing the impact of government subsidy policies on manufacturers’ investment decisions in low-carbon technology, particularly in the context of blockchain adoption. Using a game-theoretic framework, four distinct supply chain models are developed to reflect scenarios with and without blockchain adoption and to compare the effects of technology-oriented and output-based subsidy policies. The findings suggest that larger subsidies encourage greater investment in low-carbon technologies, with higher total subsidy amounts having a stronger incentive effect. Notably, in the absence of blockchain technology, technology subsidy policies result in higher product pricing. However, when blockchain is introduced, manufacturers strategically increase wholesale prices to capture a greater share of the subsidy benefits, with the extent of the price adjustment depending on the subsidy amount. To effectively stimulate consumer purchases, policymakers should carefully consider the implications of implementing technology subsidies in markets lacking blockchain infrastructure. In addition, strengthening consumer trust in green products motivates manufacturers to intensify their efforts to reduce emissions, leading to higher wholesale and retail prices without dampening demand. These findings highlight the crucial roles of both subsidy mechanisms and blockchain technology in developing efficient low-carbon supply chain strategies. This study also introduces a unified analytical framework that defines the boundaries of low-carbon technology investments across various policy and technological scenarios, offering valuable insights for policymakers, industry stakeholders, and researchers.