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A Game-Theoretic Analysis of Incentive Effects for Agribiomass Power Generation Supply Chain in China

Author

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  • Juanjuan Wu

    (Shandong Research Center of Engineering and Technology for Clean Energy, School of Agricultural Engineering and Food Science, Shandong University of Technology, Zibo 255000, China)

  • Jian Zhang

    (Shandong Research Center of Engineering and Technology for Clean Energy, School of Agricultural Engineering and Food Science, Shandong University of Technology, Zibo 255000, China
    School of Economics and Management, Beijing Information Science & Technology University, Beijing 100192, China)

  • Weiming Yi

    (Shandong Research Center of Engineering and Technology for Clean Energy, School of Agricultural Engineering and Food Science, Shandong University of Technology, Zibo 255000, China)

  • Hongzhen Cai

    (Shandong Research Center of Engineering and Technology for Clean Energy, School of Agricultural Engineering and Food Science, Shandong University of Technology, Zibo 255000, China)

  • Yang Li

    (Shandong Research Center of Engineering and Technology for Clean Energy, School of Agricultural Engineering and Food Science, Shandong University of Technology, Zibo 255000, China)

  • Zhanpeng Su

    (Shandong Research Center of Engineering and Technology for Clean Energy, School of Agricultural Engineering and Food Science, Shandong University of Technology, Zibo 255000, China)

Abstract

The undersupplies of feedstock and high costs have hindered the development of China’s biomass power generation. In this paper, the noncooperative game, farmer–broker cooperative game, and broker–biomass power plant cooperative game, under government incentives, are constructed and analyzed. The optimal decision strategies and profits for these three cases are obtained, while numerical examples and sensitivity analysis are conducted, aiming at illustrating some specific features of the games. It is shown that the government plays a critical role in the development of utilizing agribiomass for power generation and can work better in cooperative games. In addition, both agribiomass supply quantity and profits of supply chain members are higher in cooperative than in noncooperative game. Meanwhile, farmers can get the maximum profit in the broker–biomass power plant cooperative game, while biomass power plant makes the maximum profit in the farmer–broker cooperative game. To guide the healthy development of the industry, there is an urgent need for further exploration of the biomass supply chain management and coordination issue. Specifically, the cooperative game for establishing optimal feedstock price subsidy policy will be done by way of adjusting government incentives and alliance profit distribution.

Suggested Citation

  • Juanjuan Wu & Jian Zhang & Weiming Yi & Hongzhen Cai & Yang Li & Zhanpeng Su, 2021. "A Game-Theoretic Analysis of Incentive Effects for Agribiomass Power Generation Supply Chain in China," Energies, MDPI, vol. 14(3), pages 1-18, January.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:3:p:546-:d:484742
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    References listed on IDEAS

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    Cited by:

    1. Olszewski, Robert & Pałka, Piotr & Wendland, Agnieszka & Majdzińska, Karolina, 2021. "Application of cooperative game theory in a spatial context: An example of the application of the community-led local development instrument for the decision support system of biogas plants constructi," Land Use Policy, Elsevier, vol. 108(C).
    2. Shohre Khoddami & Fereshteh Mafakheri & Yong Zeng, 2021. "A System Dynamics Approach to Comparative Analysis of Biomass Supply Chain Coordination Strategies," Energies, MDPI, vol. 14(10), pages 1-35, May.

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