IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v11y2021i11p1152-d681398.html
   My bibliography  Save this article

Research on Government Subsidy Strategies for the Development of Agricultural Products E-Commerce

Author

Listed:
  • Yaoguang Zhong

    (School of Business, Dongguan Polytechnic, Dongguan 523808, China)

  • Ivan Ka Wai Lai

    (Faculty of International Tourism and Management, City University of Macau, Macau 999078, China)

  • Fangfang Guo

    (School of Economics and Management, Dongguan University of Technology, Dongguan 523808, China)

  • Huajun Tang

    (School of Business, Macau University of Science and Technology, Macau 999078, China)

Abstract

In many countries, the governments support the development of local agriculture through subsidization. Subsidizing the sales of agricultural products through E-commerce channels is a way to support the development of agriculture in China. This study aims to develop a profit model and apply Stackelberg game theory to determine which type of subsidies and decision-making can provide the maximum benefits for agricultural products E-commerce supply chains. The results indicate that for both centralized decisions and decentralized decisions, the subsidizing to the agricultural cooperative is better than the subsidizing to consumers and no subsidization. The sales volume, preservation level, sales efforts, and overall profit of the agricultural products E-commerce supply chain are significantly higher. It suggests that the government should play a leading role to support the development of agricultural products E-commerce. This study contributes to agricultural research by developing a profit model to examine the effects of different government subsidy strategies on each member of the agricultural online shopping supply chain. Recommendations are provided for agricultural cooperatives, E-commerce platforms, and the government to improve the quality and sales of agricultural products through online shopping channels.

Suggested Citation

  • Yaoguang Zhong & Ivan Ka Wai Lai & Fangfang Guo & Huajun Tang, 2021. "Research on Government Subsidy Strategies for the Development of Agricultural Products E-Commerce," Agriculture, MDPI, vol. 11(11), pages 1-27, November.
    • Handle: RePEc:gam:jagris:v:11:y:2021:i:11:p:1152-:d:681398
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/11/11/1152/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2077-0472/11/11/1152/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Weimin Ma & Ranran Zhang & Shiwei Chai, 2019. "What Drives Green Innovation? A Game Theoretic Analysis of Government Subsidy and Cooperation Contract," Sustainability, MDPI, vol. 11(20), pages 1-24, October.
    2. Duygu Akkaya & Kostas Bimpikis & Hau Lee, 2021. "Government Interventions to Promote Agricultural Innovation," Manufacturing & Service Operations Management, INFORMS, vol. 23(2), pages 437-452, March.
    3. Jiayi Joey Yu & Christopher S. Tang & Zuo-Jun Max Shen, 2018. "Improving Consumer Welfare and Manufacturer Profit via Government Subsidy Programs: Subsidizing Consumers or Manufacturers?," Manufacturing & Service Operations Management, INFORMS, vol. 20(4), pages 752-766, October.
    4. Yaoguang Zhong & Fangfang Guo & Zhiqiang Wang & Huajun Tang, 2019. "Coordination Analysis of Revenue Sharing in E-Commerce Logistics Service Supply Chain With Cooperative Distribution," SAGE Open, , vol. 9(3), pages 21582440198, August.
    5. Rolf A.E. Mueller, 2001. "E-Commerce and Entrepreneurship in Agricultural Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1243-1249.
    6. Ghosh, Debabrata & Shah, Janat, 2012. "A comparative analysis of greening policies across supply chain structures," International Journal of Production Economics, Elsevier, vol. 135(2), pages 568-583.
    7. Jian Xue & Ruifeng Gong & Laijun Zhao & Xiaoqing Ji & Yan Xu, 2019. "A Green Supply-Chain Decision Model for Energy-Saving Products That Accounts for Government Subsidies," Sustainability, MDPI, vol. 11(8), pages 1-17, April.
    8. Bo Yan & Jiwen Wu & Zijie Jin & Shiyou He, 2020. "Decision-making of fresh agricultural product supply chain considering the manufacturer’s fairness concerns," 4OR, Springer, vol. 18(1), pages 91-122, March.
    9. Xueli Zhan & Yi Tian & Chengjin Liu & Aili Hou & Junhai Ma, 2020. "Study of the Complexity Game of Supply Chain Green Innovation Introduction under EPR Policy and Government Subsidies," Complexity, Hindawi, vol. 2020, pages 1-18, September.
    10. Shahriar Mustafiz & Akira Nakayasu & Mamoru Itabashi, 2021. "Marketing of Vegetable Seeds: Practice and Behavioral Inclinations of Vegetable Seed Sellers and Farmers in Selected Areas of Bangladesh," Agriculture, MDPI, vol. 11(4), pages 1-16, April.
    11. Ma, Peng & Wang, Haiyan & Shang, Jennifer, 2013. "Supply chain channel strategies with quality and marketing effort-dependent demand," International Journal of Production Economics, Elsevier, vol. 144(2), pages 572-581.
    12. Liu, Zugang (Leo) & Anderson, Trisha D. & Cruz, Jose M., 2012. "Consumer environmental awareness and competition in two-stage supply chains," European Journal of Operational Research, Elsevier, vol. 218(3), pages 602-613.
    13. Qingfeng Meng & Mengwan Li & Zhen Li & Jing Zhu, 2020. "How Different Government Subsidy Objects Impact on Green Supply Chain Decision considering Consumer Group Complexity," Mathematical Problems in Engineering, Hindawi, vol. 2020, pages 1-12, May.
    14. Wei-yu Kevin Chiang & Dilip Chhajed & James D. Hess, 2003. "Direct Marketing, Indirect Profits: A Strategic Analysis of Dual-Channel Supply-Chain Design," Management Science, INFORMS, vol. 49(1), pages 1-20, January.
    15. Xiaodong Liu & John Walsh, 2019. "Study on Development Strategies of Fresh Agricultural Products E-commerce in China," International Business Research, Canadian Center of Science and Education, vol. 12(8), pages 61-70, August.
    16. Huanyong Zhang & Huiyuan Xu & Xujin Pu, 2020. "Comparisons of Pre-Sale Strategies for a Fresh Agri-Product Supply Chain with Service Effort," Agriculture, MDPI, vol. 10(8), pages 1-20, August.
    17. Richard J. Sexton, 1990. "Imperfect Competition in Agricultural Markets and the Role of Cooperatives: A Spatial Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 709-720.
    18. Huang, Weixiang & Zhou, Wenhui & Chen, Jiguang & Chen, Xiaohong, 2019. "The government’s optimal subsidy scheme under Manufacturers’ competition of price and product energy efficiency," Omega, Elsevier, vol. 84(C), pages 70-101.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yanwei Chen & Xiaojun Liu & Kaiqing Huang & Huajun Tang, 2022. "Pricing and Service Effort Decisions of Book Dual-Channel Supply Chains with Showrooming Effect Based on Cost-Sharing Contracts," Sustainability, MDPI, vol. 14(18), pages 1-23, September.
    2. Giuseppe Timpanaro, 2023. "Agricultural Food Marketing, Economics and Policies," Agriculture, MDPI, vol. 13(4), pages 1-9, March.
    3. Han Wang & Chuan Pang & Huajun Tang, 2023. "Pricing and Carbon-Emission-Reduction Decisions under the BOPS Mode with Low-Carbon Preference from Customers," Mathematics, MDPI, vol. 11(12), pages 1-26, June.
    4. Zhiqiang Liu & Shitong Jia & Zixing Wang & Caiyun Guo & Yanqi Niu, 2022. "A Measurement Model and Empirical Analysis of the Coordinated Development of Rural E-Commerce Logistics and Agricultural Modernization," Sustainability, MDPI, vol. 14(21), pages 1-22, October.
    5. Fangfang Guo & Tao Zhang & Xiuquan Huang & Yaoguang Zhong, 2023. "Government Subsidy Strategies Considering Greenness on Agricultural Product E-Commerce Supply Chain," Mathematics, MDPI, vol. 11(7), pages 1-26, March.
    6. Kun Song & Yu Tang & Dungang Zang & Hua Guo & Wenting Kong, 2022. "Does Digital Finance Increase Relatively Large-Scale Farmers’ Agricultural Income through the Allocation of Production Factors? Evidence from China," Agriculture, MDPI, vol. 12(11), pages 1-15, November.

    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. Fangfang Guo & Tao Zhang & Xiuquan Huang & Yaoguang Zhong, 2023. "Government Subsidy Strategies Considering Greenness on Agricultural Product E-Commerce Supply Chain," Mathematics, MDPI, vol. 11(7), pages 1-26, March.
    2. Xiaoxu Chen & Jingwei Wang & Peng Xu & Thomas Walker & Guoqiang Yang, 2023. "Emission Reduction and Channel Decisions in a Two-Echelon Supply Chain Considering Service Spillovers," Mathematics, MDPI, vol. 11(21), pages 1-27, October.
    3. Shengliang Zong & Chunyang Shen & Siping Su, 2022. "Decision Making in Green Supply Chain with Manufacturers’ Misreporting Behavior," Sustainability, MDPI, vol. 14(9), pages 1-28, April.
    4. Junjian Wu & Jennifer Shang, 2021. "Optimal Green Operation and Information Leakage Decisions under Government Subsidy and Supply Uncertainty," Sustainability, MDPI, vol. 13(24), pages 1-19, December.
    5. Feng Tao & Yan Zhou & Junsong Bian & Kin Keung Lai, 2023. "Optimal channel structure for a green supply chain with consumer green-awareness demand," Annals of Operations Research, Springer, vol. 324(1), pages 601-628, May.
    6. Deyan Yang & Jinyong Wang & Dongping Song, 2019. "Channel Structure Strategies of Supply Chains with Varying Green Cost and Governmental Interventions," Sustainability, MDPI, vol. 12(1), pages 1-26, December.
    7. Avinadav, Tal & Levy, Priel, 2023. "The effect of an uncertain commission rate on the decisions of a capital-constrained developer," Operations Research Perspectives, Elsevier, vol. 11(C).
    8. Juanjuan Qin & Liguo Ren & Liangjie Xia, 2017. "Carbon Emission Reduction and Pricing Strategies of Supply Chain under Various Demand Forecasting Scenarios," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(01), pages 1-27, February.
    9. Bowon Kim & Jeong Eun Sim, 2016. "Supply Chain Coordination and Consumer Awareness for Pollution Reduction," Sustainability, MDPI, vol. 8(4), pages 1-20, April.
    10. Li, Jin & Hu, Zening & Shi, Victor & Wang, Qian, 2021. "Manufacturer's encroachment strategy with substitutable green products," International Journal of Production Economics, Elsevier, vol. 235(C).
    11. Chen, Wenbo, 2018. "Retailer-driven carbon emission abatement with consumer environmental awareness and carbon tax: Revenue-sharing versus Cost-sharingAuthor-Name: Yang, Huixiao," Omega, Elsevier, vol. 78(C), pages 179-191.
    12. Fang Qiu & Qifan Hu & Bing Xu, 2020. "Fresh Agricultural Products Supply Chain Coordination and Volume Loss Reduction Based on Strategic Consumer," IJERPH, MDPI, vol. 17(21), pages 1-25, October.
    13. Takuro Miyamoto, 2023. "Green product diffusion and innovation in supply chains," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 25(3), pages 331-353, July.
    14. Hui Li & Chuanxu Wang & Meng Shang & Wei Ou, 2017. "Pricing, Carbon Emission Reduction, Low-Carbon Promotion and Returning Decision in a Closed-Loop Supply Chain under Vertical and Horizontal Cooperation," IJERPH, MDPI, vol. 14(11), pages 1-26, November.
    15. Yanting Chen & Mengling Wu, 2024. "Pricing Decisions in Dual-Channel Supply Chains Considering the Offline Channel Preference and Service Level," Mathematics, MDPI, vol. 12(16), pages 1-19, August.
    16. Yuanqiao Chen & Zhisong Chen & Jianhui Peng, 2021. "How does emission right-based lending contribute to sustainable production and green financing? A modelling study," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13945-13972, September.
    17. Cong Wang & Zongbao Zou & Shidao Geng, 2021. "Green Technology Investment in a Decentralized Supply Chain under Demand Uncertainty," Sustainability, MDPI, vol. 13(7), pages 1-25, March.
    18. Zhe Huang & Min Fu, 2020. "Research on green decision making of pharmaceutical logistics considering government subsidy strategy," PLOS ONE, Public Library of Science, vol. 15(10), pages 1-13, October.
    19. Emad Sane Zerang & Ata Allah Taleizadeh & Jafar Razmi, 2018. "Analytical comparisons in a three-echelon closed-loop supply chain with price and marketing effort-dependent demand: game theory approaches," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(1), pages 451-478, February.
    20. Zhou, Yanju & Che, Yuan, 2021. "Research on Government Logistics Subsidies for Poverty Alleviation with Non-uniform Distribution of Consumers," Omega, Elsevier, vol. 104(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:gam:jagris:v:11:y:2021:i:11:p:1152-:d:681398. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.