STACKELBERG GAME ANALYSIS OF GOVERNMENT SUBSIDY ON SUSTAINABLE OFF-SITE CONSTRUCTION AND LOW-CARBON LOGISTICS

Stackelberg game analysis of government subsidy on sustainable off-site construction and low-carbon logistics

Stackelberg game analysis of government subsidy on sustainable off-site construction and low-carbon logistics

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This paper considers promoting off-site construction using government subsidy.A three-stage Stackelberg game model is formulated for the optimal subsidy design for the government, accounting for the decisions of government, suppliers (owners of off-site construction yards), and customers (entities that buy precast concrete from the suppliers).The government Candle Holders has two objectives: one is to maximize the use of precast concrete produced by regional yards and the other is to reduce green-house gas emissions from the transport of precast concrete.A number of properties of the three-stage Stackelberg game Thermometer Probes framework have been analyzed.

We find that an inappropriately designed subsidy scheme may decrease the use of precast concrete produced by regional yards and increase green-house gas emissions from the transport of precast concrete, compared with a no-subsidy benchmark.

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