Blockchain‐driven subsidy mechanisms in green food supply chain: a comparative study of lump‐sum and per‐unit incentives

Abstract This paper investigates how blockchain‐enabled empowerment alters consumer trust mechanisms regarding food greenness, consequently influencing supply chain decisions and modifying the effectiveness of government green subsidy policies. Specifically, we examine the moderating role of blockchain technology on the performance of two alternative government subsidy schemes (per‐unit and lump‐sum) within a green food supply chain. The results indicate that government subsidies significantly stimulate green innovation among the green food producer and generate downstream benefits. The size of the subsidy coefficient has a dual effect: It simultaneously shapes stakeholders’ preferences between subsidy schemes and acts as a key determinant of blockchain adoption decisions. Under the per‐unit subsidy, the extra revenue that a producer can obtain by misreporting green food output unintentionally becomes an implicit source of funding for quality investment, whereas the adoption of blockchain raises the likelihood that the lump‐sum subsidy will outperform the per‐unit subsidy. Furthermore, for the per‐unit subsidy, the e‐commerce platform as a retailer is more cost‐sensitive toward blockchain application compared to the producer. Lower blockchain implementation cost can improve food greenness and freshness while achieving a Pareto improvement in overall supply chain environmental performance and social welfare. However, when the green Research and Development (R&D) costs are excessively high, blockchain adoption can actually reduce both the environmental sustainability and market demand. These findings offer policymakers valuable insights into how to leverage the synergy between technological empowerment and institutional innovation.