Subsidy policies for the grain supply chain considering postharvest loss of grain and agricultural pollutant emission in China (2024)

Agric. Econ. - Czech, 2024, 70(5):207-225|DOI:10.17221/221/2023-AGRICECON

Subsidy policies for the grain supply chain considering postharvest loss ofgrain and agricultural pollutant emission inChinaOriginal Paper

Pan Liu¹, Bin Zhao², Haodong Tang², Jiamin Zhu¹

¹Management Science and Engineering, School of Information and Management Sciences, Henan Agricultural University, Zhengzhou, P. R. China

²Logistics Engineering Management, School of Information and Management Sciences, Henan Agricultural University, Zhengzhou, P. R. China

Toreduce agricultural pollutant emission (APE) and postharvest loss ofgrain (PHLG), the Chinese government enacted aseries ofsubsidy policies; however, the profit-oriented supply chain members are seriously lacking orreducing APE and PHLG efforts. Toaddress this issue, weconsidered asthe research objective agrain supply chain consisting of aproducer, aretailer and the government. Weproposed the concept and functional expressions ofsupply chain members’ reduction efforts for APE and PHLG. Wethen proposed two main variables: the environmental innovation subsidy coefficient and the quantity attenuation factor ofgrain. According tothe actual situation, four investment subsidy models were proposed. The results showed the following: i) supply chain members’ equilibrium prices and incomes were negatively correlated with the degree ofthe producer’s APE effort regardless ofwhether the supply chain members were investing inPHLG technology; ii) when the government subsidises APE and PHLG technology for other supply chain members, the government should stop subsidising the retailer’s inputs inreduction loss technology toensure that the government’s own interests are not damaged; iii) the government’s income was restricted bythe degree ofits subsidising ofother supply chain members. This study provides atheoretical support for the government toformulate appropriate policies toreduce APE and PHLG, which isimportant for maintaining national food security.

Keywords: agricultural non-point source pollution; environmental innovation subsidy; grain loss; policy recommendations; quantity attenuation factor

Received: July 2, 2023; Revised: March 28, 2024; Accepted: April 8, 2024; Published: May 29, 2024 Show citation

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