A Review on the Externalities of Enterprise Green Food Production from the Perspective of Game Theory

摘要

This study introduces the externalities of green food production and related theories. Production games between enterprises in the market proved that without government regulation, enterprises would abandon the green manufacturing strategy due to the high costs but low profits associated with it resulting, a decrease in social welfare. Through the evolutionary game between enterprises and the government, the importance of government's role in internalizing the externalities associated with the food manufacturing is magnified. Therefore, the coordination between the government, enterprises and consumers is needed to internalize the environmental externalities in the manufacturing industries such as the food manufacturing sector to insure the realization of a green growth path in the near future.