Abstract: A two-level green supply chain model with retailer leading and manufacturer following is established. The impact of manufacturer's risk aversion and government subsidies on the decision-making, utility and total social welfare of supply chain members is studied. The results show that: the manufacturer's risk aversion will reduce the product green degree and the manufacturer's utility, but the retailer's utility and the total social welfare will increase; the standard deviation of market volatility and the degree of risk aversion have the same impact on the supply chain; the government subsidy has a positive impact on the supply chain: as the product green degree under the subsidy manufacturer is higher, the manufacturer's efficiency under the subsidy retailer is higher and the utility of consumers, retailers and total social welfare are higher, as well.