Abstract: In order to explore the impact of government subsidy and enterprise cost-sharing on green efforts level, pricing strategy and profit of green supply chain, and analyze the difference of decision results under different government subsidy modes, the green supply chain members' optimal strategies are studied by using game theory and numerical simulation method. The results show that the retailer's cost-sharing can effectively motivate the manufacturer to increase investment in green efforts. But the higher the share ratio, the more disadvantage for the retailer. Government subsidy is beneficial to all members of the supply chain and has a good incentive effect, but the incentive effect is weaker when the government subsidy and the retailer's cost-sharing co-exist, because the incentive effect of the retailer's cost-sharing is weakened and even has an adverse effect compared with the situation of cost-sharing only. Regardless of whether the retailer shares the cost of green efforts, the incentive effect of government subsidy to the consumer is better than subsidy to the manufacturer. This research can help the government and green supply chain companies to make the best choice in the decision-making interaction.

Key words: green supply chain, government subsidy, cost-sharing, optimal decision