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Influence of Trust on Biomass Supply Decision-Making in China

Author

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  • Lingling Wang

    (School of Economics and Management, Kochi University of Technology, 2-22 Eikokuji-cho, Kochi City, Kochi 780-8515, Japan)

  • Tsunemi Watanabe

    (School of Economics and Management, Kochi University of Technology, 2-22 Eikokuji-cho, Kochi City, Kochi 780-8515, Japan
    Graduate School of Engineering, Kochi University of Technology, Miyanokuchi 185, Tosayamada-cho, Kami City, Kochi 782-0003, Japan)

Abstract

Given the abundant straw resources in Northeast China and the huge external costs associated with fossil fuels, straw-based biomass power plants have emerged as a popular alternative to coal-fired power plants. The sustainability of these green alternatives depends on straw supply from farmers, yet little is known about their perceptions regarding such supply because of a lack of cooperation in the supply chain. To better understand farmers’ opinions on supplying straw, this study examined their trust in middlemen, perceptions regarding risk in straw supply, the possibility of reducing transaction costs, and their willingness to supply straw. Data were collected from 275 farmers in the national bioenergy industry area in Wangkui County, Northeast China. We investigated the theoretical and empirical connections between trust and risk perception, trust and the possibility of reducing transaction costs, and trust and willingness to supply straw. The results indicated that education, income, and trust factors explained farmers’ risk perceptions, the possibility that they will reduce transaction costs, and their willingness to supply straw. On the basis of the analysis, a model of the influence of trust on straw supply was established. The overall findings indicated that biomass power plants and middlemen must build trusting relationships with farmers to ensure sustainable biomass supply.

Suggested Citation

  • Lingling Wang & Tsunemi Watanabe, 2017. "Influence of Trust on Biomass Supply Decision-Making in China," Energies, MDPI, vol. 10(11), pages 1-19, October.
    • Handle: RePEc:gam:jeners:v:10:y:2017:i:11:p:1749-:d:117117
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    Cited by:

    1. Hao Zhu & Yibin Ao & Hong Xu & Zhongli Zhou & Yan Wang & Linchuan Yang, 2021. "Determinants of Farmers’ Intention of Straw Recycling: A Comparison Analysis Based on Different Pro-Environmental Publicity Modes," IJERPH, MDPI, vol. 18(21), pages 1-17, October.
    2. Letizia Tebaldi & Barbara Bigliardi & Eleonora Bottani, 2018. "Sustainable Supply Chain and Innovation: A Review of the Recent Literature," Sustainability, MDPI, vol. 10(11), pages 1-29, October.
    3. Wang, Zhanwu & Wang, Zhenfeng & Tahir, Nadeem & Wang, Heng & Li, Jin & Xu, Guangyin, 2020. "Study of synergetic development in straw power supply chain: Straw price and government subsidy as incentive," Energy Policy, Elsevier, vol. 146(C).

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