IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v264y2023ics0925527323002104.html
   My bibliography  Save this article

Role of climate-smart agriculture in fighting against climate change in competitive supply chains

Author

Listed:
  • Liu, Qingyu
  • Shen, Bin
  • Wen, Xin

Abstract

Climate-smart agriculture (CSA) is a United Nations-recommended approach to help farmer collectives (FCs) build crop resilience against climate-related yield uncertainty. In this study, we develop game-theoretical models to analyse the impact of CSA on the competitive agricultural marketplace. FCs can choose either a direct-to-consumer mode (i.e., selling to consumers directly without using CSA) or a CSA-enabled mode (i.e., selling to consumers through the e-platform with the use of CSA). We find that CSA adoption is preferable for FCs when the climate-related yield uncertainty is sufficiently high but unprofitable for FCs when the climate-related yield uncertainty is sufficiently low. Moreover, we identify how climate-related yield uncertainty and segmented agri-market selection (e.g., staple or side crop) affect yield competition. When FCs plant a crop with a low substitution rate (e.g., a staple crop), yield competition will be intensified if at least one FC does not adopt the CSA-enabled mode, whereas when FCs plant a crop with a high substitution rate (e.g., a side crop), yield competition will be intensified if all FCs adopt the CSA-enabled mode. We also find that the industrywide welfare improvement, total yield improvement, and FCs’ profit can benefit from inconsistent CSA modes, rather than consistent ones in supply chains. Our results provide guidelines to both FCs and policymakers on CSA adoption for alleviating the crop supply shortage and fighting against climate change.

Suggested Citation

  • Liu, Qingyu & Shen, Bin & Wen, Xin, 2023. "Role of climate-smart agriculture in fighting against climate change in competitive supply chains," International Journal of Production Economics, Elsevier, vol. 264(C).
    • Handle: RePEc:eee:proeco:v:264:y:2023:i:c:s0925527323002104
    DOI: 10.1016/j.ijpe.2023.108978
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527323002104
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2023.108978?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Onur Boyabatlı & Javad Nasiry & Yangfang (Helen) Zhou, 2019. "Crop Planning in Sustainable Agriculture: Dynamic Farmland Allocation in the Presence of Crop Rotation Benefits," Management Science, INFORMS, vol. 67(5), pages 2060-2076, May.
    2. Sharma, Dinesh K. & Jana, R.K., 2009. "Fuzzy goal programming based genetic algorithm approach to nutrient management for rice crop planning," International Journal of Production Economics, Elsevier, vol. 121(1), pages 224-232, September.
    3. Ming Hu & Yan Liu & Wenbin Wang, 2019. "Socially Beneficial Rationality: The Value of Strategic Farmers, Social Entrepreneurs, and For-Profit Firms in Crop Planting Decisions," Management Science, INFORMS, vol. 65(8), pages 3654-3672, August.
    4. Anderson, Edward & Monjardino, Marta, 2019. "Contract design in agriculture supply chains with random yield," European Journal of Operational Research, Elsevier, vol. 277(3), pages 1072-1082.
    5. El Mamoun Amrouk & Stephanie-Carolin Grosche & Thomas Heckelei, 2020. "Interdependence between cash crop and staple food international prices across periods of varying financial market stress," Applied Economics, Taylor & Francis Journals, vol. 52(4), pages 345-360, January.
    6. Tsan‐Ming Choi & Subodha Kumar & Xiaohang Yue & Hau‐Ling Chan, 2022. "Disruptive Technologies and Operations Management in the Industry 4.0 Era and Beyond," Production and Operations Management, Production and Operations Management Society, vol. 31(1), pages 9-31, January.
    7. Bin Shen & Ciwei Dong & Stefan Minner, 2022. "Combating Copycats in the Supply Chain with Permissioned Blockchain Technology," Production and Operations Management, Production and Operations Management Society, vol. 31(1), pages 138-154, January.
    8. Cao, Yifan & Shen, Bin, 2022. "Adopting blockchain technology to block less sustainable products’ entry in global trade," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).
    9. Stephan J. Goetz, 1992. "A Selectivity Model of Household Food Marketing Behavior in Sub-Saharan Africa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 444-452.
    10. Leslie Lipper & Philip Thornton & Bruce M. Campbell & Tobias Baedeker & Ademola Braimoh & Martin Bwalya & Patrick Caron & Andrea Cattaneo & Dennis Garrity & Kevin Henry & Ryan Hottle & Louise Jackson , 2014. "Climate-smart agriculture for food security," Nature Climate Change, Nature, vol. 4(12), pages 1068-1072, December.
    11. Prashant Chintapalli & Christopher S. Tang, 2021. "The Value and Cost of Crop Minimum Support Price: Farmer and Consumer Welfare and Implementation Cost," Management Science, INFORMS, vol. 67(11), pages 6839-6861, November.
    12. Parker, Nathan & Fan, Yueyue & Ogden, Joan, 2010. "From waste to hydrogen: An optimal design of energy production and distribution network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(4), pages 534-545, July.
    13. Long, Thomas B. & Blok, Vincent & Poldner, Kim, 2016. "Business models for maximising the diffusion of technological innovations for climate-smart agriculture," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(1), September.
    14. K Darby-Dowman & S Barker & E Audsley & D Parsons, 2000. "A two-stage stochastic programming with recourse model for determining robust planting plans in horticulture," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 51(1), pages 83-89, January.
    15. Shen, Bin & Choi, Tsan-Ming & Chan, Hau-Ling, 2019. "Selling green first or not? A Bayesian analysis with service levels and environmental impact considerations in the Big Data Era," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 412-420.
    16. Choi, Tsan-Ming & Ouyang, Xu, 2021. "Initial coin offerings for blockchain based product provenance authentication platforms," International Journal of Production Economics, Elsevier, vol. 233(C).
    17. Regnier, Eva, 2008. "Doing something about the weather," Omega, Elsevier, vol. 36(1), pages 22-32, February.
    18. Dae-Hee Yoon, 2016. "Supplier Encroachment and Investment Spillovers," Production and Operations Management, Production and Operations Management Society, vol. 25(11), pages 1839-1854, November.
    19. Somarin, Aghil Rezaei & Sharma, Pankaj & Tiwari, Sunil & Chen, Songlin, 2023. "Stock reallocation policy for repairable service parts in case of supply disruptions due to extreme weather events," International Journal of Production Economics, Elsevier, vol. 256(C).
    20. Shen, Bin & Xu, Xiaoyan & Chan, Hau Ling & Choi, Tsan-Ming, 2021. "Collaborative innovation in supply chain systems: Value creation and leadership structure," International Journal of Production Economics, Elsevier, vol. 235(C).
    21. Gupta, Shivam & Modgil, Sachin & Kumar, Ajay & Sivarajah, Uthayasankar & Irani, Zahir, 2022. "Artificial intelligence and cloud-based Collaborative Platforms for Managing Disaster, extreme weather and emergency operations," International Journal of Production Economics, Elsevier, vol. 254(C).
    22. Choi, Tsan-Ming & Shi, Xiutian, 2022. "Reducing supply risks by supply guarantee deposit payments in the fashion industry in the “new normal after COVID-19”," Omega, Elsevier, vol. 109(C).
    23. Fang, Chang & Fan, Shuyi & Chi, Mingxiang & Wang, Weizhong, 2023. "The optimal remanufacturing strategy, returned quality choice and independent remanufacturers’ advantage for tackling extreme weather," International Journal of Production Economics, Elsevier, vol. 259(C).
    24. Song Huang & Xu Guan & Ying†Ju Chen, 2018. "Retailer Information Sharing with Supplier Encroachment," Production and Operations Management, Production and Operations Management Society, vol. 27(6), pages 1133-1147, June.
    25. Hafezi, Maryam & Zolfagharinia, Hossein, 2018. "Green product development and environmental performance: Investigating the role of government regulations," International Journal of Production Economics, Elsevier, vol. 204(C), pages 395-410.
    26. Ahumada, Omar & Villalobos, J. Rene, 2009. "Application of planning models in the agri-food supply chain: A review," European Journal of Operational Research, Elsevier, vol. 196(1), pages 1-20, July.
    27. Zhang, Ting & Su, Yina & Wang, Ningning, 2023. "Product quality improvement under retailer-direct financing: Effects of attitudes toward extreme weather," International Journal of Production Economics, Elsevier, vol. 257(C).
    28. Borodin, Valeria & Bourtembourg, Jean & Hnaien, Faicel & Labadie, Nacima, 2016. "Handling uncertainty in agricultural supply chain management: A state of the art," European Journal of Operational Research, Elsevier, vol. 254(2), pages 348-359.
    29. Dong, Ciwei & Liu, Qingyu & Shen, Bin, 2019. "To be or not to be green? Strategic investment for green product development in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 193-227.
    30. Choi, Tsan-Ming & He, Yanyan, 2019. "Peer-to-peer collaborative consumption for fashion products in the sharing economy: Platform operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 49-65.
    31. Robert, Marion & Bergez, Jacques-Eric & Thomas, Alban, 2018. "A stochastic dynamic programming approach to analyze adaptation to climate change – Application to groundwater irrigation in India," European Journal of Operational Research, Elsevier, vol. 265(3), pages 1033-1045.
    32. Behzadi, Golnar & O’Sullivan, Michael Justin & Olsen, Tava Lennon & Zhang, Abraham, 2018. "Agribusiness supply chain risk management: A review of quantitative decision models," Omega, Elsevier, vol. 79(C), pages 21-42.
    33. Ahumada, Omar & Villalobos, J. Rene, 2011. "Operational model for planning the harvest and distribution of perishable agricultural products," International Journal of Production Economics, Elsevier, vol. 133(2), pages 677-687, October.
    34. Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter.
    35. Choi, Tsan-Ming & Siqin, Tana, 2022. "Blockchain in logistics and production from Blockchain 1.0 to Blockchain 5.0: An intra-inter-organizational framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 160(C).
    36. Nouira, Imen & Hammami, Ramzi & Fernandez Arias, Alina & Gondran, Natacha & Frein, Yannick, 2022. "Olive oil supply chain design with organic and conventional market segments and consumers’ preference to local products," International Journal of Production Economics, Elsevier, vol. 247(C).
    37. Christopher S. Tang & Yulan Wang & Ming Zhao, 2015. "The Implications of Utilizing Market Information and Adopting Agricultural Advice for Farmers in Developing Economies," Production and Operations Management, Production and Operations Management Society, vol. 24(8), pages 1197-1215, August.
    38. Tan, Barış & Çömden, Nihan, 2012. "Agricultural planning of annual plants under demand, maturation, harvest, and yield risk," European Journal of Operational Research, Elsevier, vol. 220(2), pages 539-549.
    39. Chonnikarn (Fern) Jira & Michael W. Toffel, 2013. "Engaging Supply Chains in Climate Change," Manufacturing & Service Operations Management, INFORMS, vol. 15(4), pages 559-577, October.
    40. Sammi Yu Tang & Panos Kouvelis, 2011. "Supplier Diversification Strategies in the Presence of Yield Uncertainty and Buyer Competition," Manufacturing & Service Operations Management, INFORMS, vol. 13(4), pages 439-451, October.
    41. Cao, Kaiying & Guo, Qiang & Xu, Yuqiu, 2023. "Information sharing and carbon reduction strategies with extreme weather in the platform economy," International Journal of Production Economics, Elsevier, vol. 255(C).
    42. Onur Boyabatlı & Jason Nguyen & Tong Wang, 2017. "Capacity Management in Agricultural Commodity Processing and Application in the Palm Industry," Manufacturing & Service Operations Management, INFORMS, vol. 19(4), pages 551-567, October.
    43. Paucar-Caceres, A. & Bandala, E.R. & Wright, G.H., 2017. "The impact of global climate change on water quantity and quality: A system dynamics approach to the US–Mexican transborder regionAuthor-Name: Duran-Encalada, J.A," European Journal of Operational Research, Elsevier, vol. 256(2), pages 567-581.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Qian, Xiaoyan, 2021. "Production planning and equity investment decisions in agriculture with closed membership cooperatives," European Journal of Operational Research, Elsevier, vol. 294(2), pages 684-699.
    2. Cao, Yu & Yi, Chaoqun & Wan, Guangyu & Hu, Hanli & Li, Qingsong & Wang, Shouyang, 2022. "An analysis on the role of blockchain-based platforms in agricultural supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    3. Zhu, Shichao & Li, Jian & Wang, Shouyang & Xia, Yusen & Wang, Yajing, 2023. "The role of blockchain technology in the dual-channel supply chain dominated by a brand owner," International Journal of Production Economics, Elsevier, vol. 258(C).
    4. Kusumastuti, Ratih Dyah & Donk, Dirk Pieter van & Teunter, Ruud, 2016. "Crop-related harvesting and processing planning: a review," International Journal of Production Economics, Elsevier, vol. 174(C), pages 76-92.
    5. Jahantab, Mahboubeh & Abbasi, Babak & Le Bodic, Pierre, 2023. "Farmland allocation in the conversion from conventional to organic farming," European Journal of Operational Research, Elsevier, vol. 311(3), pages 1103-1119.
    6. Chintapalli, Prashant & Tang, Christopher S., 2022. "The implications of crop minimum support price in the presence of myopic and strategic farmers," European Journal of Operational Research, Elsevier, vol. 300(1), pages 336-349.
    7. Tarun Jain & Jishnu Hazra & T. C. E. Cheng, 2023. "Analysis of upstream pricing regulation and contract structure in an agriculture supply chain," Annals of Operations Research, Springer, vol. 320(1), pages 85-122, January.
    8. Zhou, Yu & Gao, Xiang & Luo, Suyuan & Xiong, Yu & Ye, Niangyue, 2022. "Anti-Counterfeiting in a retail Platform: A Game-Theoretic approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    9. Niu, Baozhuang & Ruan, Yiyuan & Xu, Haotao, 2024. "Less is more? Channel separation to mitigate triple competition and combat copycats in agency e-commerce," European Journal of Operational Research, Elsevier, vol. 315(1), pages 242-270.
    10. Xiaolong Guo & Lihong Cheng & Yugang Yu, 2022. "Government subsidy policy for green and efficient raw materials considering farmer heterogeneity," Production and Operations Management, Production and Operations Management Society, vol. 31(11), pages 4095-4112, November.
    11. Song, Malin & Wang, Jianlin & Zhao, Jiajia, 2023. "Effects of rising and extreme temperatures on production factor efficiency: Evidence from China's cities," International Journal of Production Economics, Elsevier, vol. 260(C).
    12. Lin, Qiang & Shan, Zhenjie & Fu, Wenhui & Lin, Xiaogang, 2024. "Interplay between the agriculture firm’s guarantee strategy and the e-commerce platform’s loan strategy with risk averse farmers," Omega, Elsevier, vol. 127(C).
    13. Heng Chen & Jennifer K. Ryan, 2023. "Optimal specialty crop planning policies with yield learning and forward contract," Production and Operations Management, Production and Operations Management Society, vol. 32(2), pages 359-378, February.
    14. Zhang, Xuefeng & Li, Zhe & Li, Guo, 2023. "Impacts of blockchain-based digital transition on cold supply chains with a third-party logistics service provider," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    15. Hong, Xianpei & He, Yimeng & Zhou, Pin & Chen, Jiguang, 2023. "Demand information sharing in a contract farming supply chain," European Journal of Operational Research, Elsevier, vol. 309(2), pages 560-577.
    16. Liu, Shuai & Hua, Guowei & Kang, Yuxuan & Edwin Cheng, T.C. & Xu, Yadong, 2022. "What value does blockchain bring to the imported fresh food supply chain?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    17. Borodin, Valeria & Bourtembourg, Jean & Hnaien, Faicel & Labadie, Nacima, 2016. "Handling uncertainty in agricultural supply chain management: A state of the art," European Journal of Operational Research, Elsevier, vol. 254(2), pages 348-359.
    18. Siqin, Tana & Yang, Lu & Chung, Sai-Ho & Wen, Xin, 2024. "Cross-channel influences in mobile-app-website e-commerce supply chains: When to weaken the influence?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 182(C).
    19. Davies, Jennifer & Sharifi, Hossein & Lyons, Andrew & Forster, Rick & Elsayed, Omar Khaled Shokry Mohamed, 2024. "Non-fungible tokens: The missing ingredient for sustainable supply chains in the metaverse age?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 182(C).
    20. Ivanov, Dmitry & Dolgui, Alexandre & Sokolov, Boris, 2022. "Cloud supply chain: Integrating Industry 4.0 and digital platforms in the “Supply Chain-as-a-Service”," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 160(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:264:y:2023:i:c:s0925527323002104. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.