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The Effectiveness of the Multilateral Coalition to Develop a Green Agricultural Products Market in China Based on a TU Cooperative Game Analysis

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Listed:
  • Mingjun Deng

    () (Business School, Hunan University of Science and Technology, Xiangtan 411201, China)

  • Guocheng Xiang

    () (College of Economics and Trade, Hunan University of Commerce, Changsha 410205, China)

  • Shuntian Yao

    () (Business School, Hunan University of Science and Technology, Xiangtan 411201, China)

Abstract

Green agriculture can improve biodiversity, increase farmers’ income, reduce agricultural non-point source pollution, solve food safety issues, and will be an important way to promote sustainable development in China. At present, the green transformation of China’s agriculture has encountered a bottleneck in the development of a green agricultural product market. How to develop a green agricultural product market has become an issue worthy of in-depth study in the academia. Previous studies have already given persuasive explanations for the inability to form a green agricultural product market, but few have explored its development path from the angle of cooperation. By employing the method of a Transferable Utilities (TU) cooperative game, and based on theoretical analyses and hypothetical data, this thesis aims to prove the effectiveness of the multilateral coalition to develop the green agricultural product market in China. The results show the effectiveness of the developed model of the green agricultural product market in which producers, consumers, food safety inspection departments, and e-commerce platforms cooperate with each other. This model meets the objective needs of the times and that of the market economy. According to the marginal contribution value of participants in different coalition orders, this thesis finds 6 kinds of coalition orders. When producers and consumers of green agricultural products enter the coalition in the last place, the marginal contribution value is maximized, which reflects the importance of the supply side and demand side of green agricultural products. In other words, the development of the green agricultural product market is a dynamic process—determined by consumers and promoted by producers—in which both sides promote and restrict each other. Finally, this article presents two policy recommendations: at the national level, to clearly proposes a strategy to build a green agricultural product e-commerce platform in China and to launch a pilot application for the specialized e-commerce platform for green agricultural products in the Guizhou province.

Suggested Citation

  • Mingjun Deng & Guocheng Xiang & Shuntian Yao, 2018. "The Effectiveness of the Multilateral Coalition to Develop a Green Agricultural Products Market in China Based on a TU Cooperative Game Analysis," Sustainability, MDPI, Open Access Journal, vol. 10(5), pages 1-17, May.
  • Handle: RePEc:gam:jsusta:v:10:y:2018:i:5:p:1476-:d:145144
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    References listed on IDEAS

    as
    1. Marcel Fafchamps & Ruth Vargas Hill & Bart Minten, 2008. "Quality control in nonstaple food markets: evidence from India," Agricultural Economics, International Association of Agricultural Economists, vol. 38(3), pages 251-266, May.
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    More about this item

    Keywords

    green agricultural products market; multilateral coalition; TU cooperative game; Shapley value; e-commerce platform;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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